Posted on November 11, 2009 at 10:31 pm One of our subscribers posted this query on our website recently. Personally, I own four credit cards out of which one belongs to a credit union. From the experience that I’ve had so far, I can guarantee that the credit union card is much better than all the bank credit cards (planning to chuck them out soon). Well, it’s not only me who is saying this but there are reports that have frozen this fact. According to a report published by Pew Charitable Trusts, median advertised interest rates of credit unions were significantly lower than bank rates. Interest rates of 12 major credit unions in July 2009 were in the range of approximately 9-13 %, about 20% lower than the bank rates. In addition, the penalties imposed by credit unions were more lenient compared to banks. The late fees and over limit fees averaged at about $20 for credit unions while for banks it was much higher.   The only occasion where both had similar features was in terms of flexibility given to the consumers. Both credit unions and banks have added terms and conditions which allow them to increase the rates or impose fees at anytime, of course, with a prior notice. The credit unions were swifter in making the ‘change’ suggested by Federal authority and gave up the ‘unfair practices’ faster than banks. About 50 % of the credit unions did not include any penalty rates while the majority of credit unions that did, complied with the standards set by the Federal authority. Not only this, credit union cards offer more liquidity than the bank credit cards. Credit unions have issued credit card to consumers having low credit scores, which the banks refused. Furthermore, their default policies are much better and they are willing to work with customers unlike banks. Therefore, I would definitely recommend a credit union card compared to a bank credit card. Why should you be slapped with 29% interest rate when you can have the same for less. If the banks consider you less important, you are left with no choice but to switch over. Source: Money Matters

Posted on November 12, 2009 at 1:36 am Credit union card or bank credit card - or no card at all?And thank you for dropping by and sharing your thoughts with us!