Not All Credit Union Credit Card Programs are Created Equal.

As you begin your quest for a BETTER credit card than a bank (i.e. a Credit Union Credit Card), you must be aware there is a small percentage of credit unions whose programs are actually "issued" by banks. These card programs are NOT listed on www.creditcardconnection.org.

Of the 7,900 credit unions in the USA, roughly 50% issue their own card programs. There remain a small percentage of credit unions whose card programs are owned by our "friendly bankers". The banks (Chase, Bank of America, US Bank and others) realized there was a great "untapped" potential within the credit union market and they aggressively approached credit unions with very enticing premiums. These programs are operated under names such as FIA Card services, Elan Financial Service, and First USA Bank.

Your best bet is to get a credit card from a credit union that owns their own program.

So how do you know if your credit union is operating their card program via a BANK?

  1. Call them and ask them outright
  2. Go to the credit card section of your credit union website
  3. Go through the motion of "applying" for a credit card online
  4. Be aware of where the link takes you... i.e. a third party website
  5. Review the "Terms & Conditions" of the Credit Card Application
  6. Scroll towards the bottom and search for terminology such as Infibank, Elan, FIA Card Services, etc.
  7. Reward programs named "Worldpoints" (FIA Card Service)

Typically, these credit union card programs will look JUST like a bank card (since they are issued by a bank):

  • Variable rates
  • Separate and often HIGHER cash advance/balance transfer APRs
  • Cash advance fees ranging from 3%-4%
  • Balance transfer fees ranging from 3%-4%
  • Late and Overlimit fees in the $35-$39 range
  • Minimum Finance Charge Fees
  • Shortened grace periods
  • APR Penalty rates for paying late

So do your homework. Again, the MAJORITY of credit unions have FAIR and ETHICAL credit card programs, but do not assume all Credit Union Card Programs are created equal. You may need to shop around.

As a reminder, this is what is "out there" with many credit unions:

  • Fixed Rates ranging from as low as 7.95% up to 17.95% based on FICO score (Federally chartered Credit Unions are prohibited from charging more than 18%)
  • $20-$25 Late Fees with a 5 day payment grace period (not hours after payment is due)
  • No Penalty APRs
  • No Separate Cash Advance/Balance Transfer APRs
  • No Cash Advance or Balance Transfer Fees (why charge the member to bring a balance over?)
  • No Annual Fees
  • Generous Reward Programs (if you're into that: points to be redeemed on ANY airline with no blackout dates)
round corners