What can you expect from a credit union credit card?

First of all, let's get the terminology straight. It is NOT "Credit Card Banks" or "Credit Card Companies". The correct term is "CREDIT CARD ISSUER". The issuer may be in form of a bank, credit union, investment firm, etc.

Visa and MasterCard are NOT issuers: Visa and MasterCard are the BRAND. The issuer or merchant "contract" with Visa and MasterCard to utilize the brand name in promoting their credit card or payment acceptance services.

Visa and MasterCard have nothing to do with setting of rates, fees or features of a card program. These are completely up to the issuer.

Secondly, as a consumer, what can you expect from most credit union credit cards as compared to the mega banks?

  • Same VISA or MasterCard brand
  • Much lower rates (fixed in most cases)
  • No Annual Fees
  • Late Fees averaging $20-$25 with a 5 day grace period (as opposed to $39 bank fees and NO grace period)
  • Reward/Point programs that rival any frequent flier program with the added benefit of use on ANY airline with NO blackout dates
  • No Cash Advance or Balance Transfer Fees
  • No Penalty Fees
  • Improved Customer Service: speaking to YOUR credit union after all!
  • Lower minimum monthly payment - 2% to 3%

KEY POINT: MOST Credit Unions have the features listed above....there are some mismanaged and poorly structured credit card programs: so do your homework!

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