Should You Consider a Credit Union Credit Card Offer
More and more people are preferring credit union credit cards because they are tired with the bank issued credit cards. Credit unions is different than a bank because it is a non for profit organization. Credit union is well known for their excellent customer service and they always modify the terms of credit cards to help customers with financial hardship to start all over their lives again.
One benefit of a credit union credit card is that it charges lower interest and fees. Credit union credit cards are several points lower than than interest rates of a bank. The average penalty APR in a credit union credit card is 18% while the credit card issued by the credit card company is 29%. however, half of the credit cards issued by credit unions do not have any penalty APR compared to only 10% of bank credit cards that do not charge penalty APR.
The interests and fees in credit union credit cards will not suddenly like as in many bank credit cards. Credit unions are not like banks who place emphasis on profits so they will not try to charge you with as much fees as possible. You have to become a member of the credit union in order to take advantage of the benefits.
Credit union credit cards have longer grace periods compared to banks. Most credit union organizations offer a grace period that lasts for 5 days while banks usually only give a 1 day grace period. Credit unions usually are more forgiving and won’t increase the interest rates when you make a single late payment. Many banks will charge you penalty interest rate when your record shows that you are behind in payment at least one time.
Credit union credit cards don’t deliberately charge you high foreign transaction fees. They only charge you enough to cover up the processing fees charged by the processors. On the other hand, bank credit cards charge an interest rate in between 2% – 3%.
Credit union credit cards also offer perks although its perks are not as attractive as those offered by the bank issued credit cards. You can earn cash back and rewards points in a credit union cards. However, unlike bank issued credit cards, it does not have partnership with major brand name airlines, and hotels. So, credit union credit card is not suitable for you are looking to take advantage of perks when you travel with a specific airline.
If your finances are not in shape, they let you know personally that you can’t qualify for the credit card. You can submit the application for a second chance if your initial application get rejected. You have to write a letter to the loan committees with a clarification of your circumstances to get approved.