The Pros and Cons of Credit Union Credit Cards

The Pros and Cons of Credit Union Credit Cards

The Pros and Cons of Credit Union Credit Cards

Banks aren’t the only institutions that offer credit cards. If you’re not having much luck getting approved for one, look into credit union credit cards. They offer more chances to get a credit card that can potentially make it easier for you.

The Pros and Cons of Credit Union Credit Cards


You’re a member, not a customer

Credit unions are member owned, nonprofit organizations. This means their goal isn’t to turn a profit, and they don’t have to answer to stockholders like banks do. Instead, their main goal is to provide excellent service to their members. So yes, you do have to join to get the benefits of a credit union, but it’s pretty easy to do so.

They’ll give you a second chance

It’s not every day you get the chance to try again for a loan or a credit card. However, with a credit union, if you apply and are turned down, you can as them to look again. Some credit unions have loan committees that consist of employees and members. They are the ones who look over the initial application. But, if you want a low-interest credit card and believe you have the income to support it, you can write a letter to this committee to explain why. Even if you just want a fresh start, you can write to them and explain your circumstance.

Flexible Payments

Credit unions want to provide you the best customer service to their members. That being said, they will attend to your needs and can basically be a friend for you during financial hardship. In doing so, they will work with you to modify loans and credit card terms to help you get back on your feet.

Low Interest Rates

You’ll often be offered a lower interest rate than you would with a bank. They manage transactions on their own as opposed to relying on different sections of the company to process funds. A lot of costs get cut this way, which saves you money. If you tend to take a few months to pay off your credit card, a credit union could potentially save you money in the long run.


All your accounts are tied together

Having all your accounts tied together is also known as cross collateralization.  Here’s how it works. If you already have a credit union credit card and get a loan, your credit card balance will be secured by the loan. Therefore, if you default or declare bankruptcy, the amount that is owed on your credit card will not be wiped out. Instead, it becomes secured by the other loan.

They ask a little more of you

If you get a credit card on a second chance, they may recommend that you to take a personal finance. This is to ensure you know how to budget correctly and stay on top of your payments. Of course, this isn’t always the case.

They have entry requirements

Before you can be a member of a credit union, you have to approved for an account. For example, you may be required to have a job in a certain sector of the job force. So if you’re considering joining a credit union, it’s a good idea to call to see if you qualify for an account.

They have their own tough times

While they will be there to help you out during your tough financial times, that doesn’t mean they are safe from tough times of their own. Credit unions are local institutions, so if one area is hit by something such as layoffs, they will feel it. Don’t be surprised if your credit union closes down or becomes part of a larger credit union. It can happen. Fortunately, just like with a bank deposit, you’re protected up to $250,000.

Do you have any questions regarding credit union credit cards? Give us a call at 1-866-991-4885. We’re happy to help.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

One thought on “The Pros and Cons of Credit Union Credit Cards

  1. You wrote that due to the way credit unions are run, they aren’t trying to answer to stockholders so they have very reasonable rates. I’ve been meaning to take out a loan for something, and was wondering if I should work through a credit union. Knowing that they will treat me like family would be amazing, as it could really save me a lot of money over time. Thank you for the great article.

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