10 Reasons to Switch to Credit Union Credit Cards

If you feel that you  are paying higher and higher fees (and more and more fees) to your credit card company then  be proactive and apply for a credit card through a credit union. Credit unions are not-for-profit financial institutions that are owned by the members. Most credit unions are run by members who are connected by a similar affiliation.

Credit unions issue many of the same types of credit cards as for-profit financial institutions. For instance they issues MasterCard and Visa but they do so at lower rates and offer benefits, features and protections that you cannot find anywhere else. Here are 10 reasons to switch to a credit union credit card.

Lower Interest Rates

Who would not want a lower interest rate on a credit card? The interest that is charged on credit cards that are issued by credit unions are 20 percent lower than the same cards that come from major banks. A study by the Pew Foundation released in October 2011 found that the most desirable advertised rate for credit union credit cards was 9.9 percent in comparison to 12.2 percent which was the lowest for banks.

Interest Rate Caps

Federal credit unions are prohibited by law from charging interest rates that are in excess of 18 percent. Banks and for-profit credit card companies do not have any restrictions placed upon them in this regard.

Lower Fees

Fees and penalties at credit union tend to be lower for credit card customers at credit unions than they do at banks. For instance, at a credit union a customer might pay $20 for making a late payment while the average bank would charge them $39.

Member-Owned Organizations

Credit unions are uniquely run in that every one is owned by its members. This means that credit unions are in the business of pleasing their members and not their investors. All of the profits that come from credit cards and loans find their way back to the members of the credit union and translate into lower rates for just about everything.

Customer Service and Satisfaction

According to a recent survey conducted by Forrester Research, 75 percent of credit unions felt that the financial institution they dealt with put the monetary interests of their customers’ above their own financial interests. Only 58 percent of bank customers felt the same about their financial institution.

Fewer Customers= More Personalized Relationships

Banks have lots of customers and that means each and every customer is an account number. Credit unions on the other hand offer more personalized service to every one of their customers. The employees know you name and get to know you on more of a personal basis.

Fewer Customers= More Importance

The fact that credit unions have fewer customers means that each person who walks through the door has importance.  Everything from opening a credit card to having an error corrected is simpler to do when you do your banking at a credit union.

Call  Centers- Not!

Do you remember the last time that you placed a phone call to a bank? You probably did not get the chance to talk to an actual person did you? Or perhaps you did after you listened to message after message. When you get a credit union credit card getting someone on the phone when you have a problem is usually very easy as most credit unions have people right there who answer the phone. That means no call centers to deal with.

Involvement in the Credit Union

Ever wish you had a say in what happens at your bank? When you become a member at a credit union you can become a member and have a say in the decision making process. The Board of Directors at a credit union is made up of members who are unpaid, and elected by the union membership. These individuals volunteer their time and have a say in how things are run. This could be you!

Less of a Risk Taker

The fact that credit unions are less driven by profits means that they take fewer risks. This is good to know if you wish to apply for a credit card with them as well as if you wish to open an account or apply for a loan.

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