Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Categories
Tip of the Day

Tip of the Day Get A Rewards Card

Get A Rewards Card - A rewards card is always a good option if you need a credit card. These no-fee hassle reward cards allow you to charge each...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Credit Union Credit Card

Credit unions are not all well known as the big banks, but they offer an alternative to the major issuers' credit cards. In general they are more consumer-friendly and may offer lower rates, too.

Credit unions are non-profit organizations which are owned by their members. Unlike banks, they don't have to make a profit to satisfy their stockholders - it's the members who call the tune.

That's why many of them charge lower interest rates on credit union credit cards than the banks are able to offer.

Many credit unions offer applicants a 'second chance' - if a credit card application is turned down, a member can ask the loan committee to review the application. The review will include assessing the member's motivation as well as credit history, giving credit-impaired individuals who are trying to repair their credit a better chance.

Penalty charges are often less than with bank credit cards - half of all credit union credit cards don't charge penalties at all - and credit unions are also more willing to assist members who find themselves in financial difficulties.

Many credit unions don't charge a balance transfer fee, so that moving to a credit union credit card from a bank card has no up front cost for the customer.

There are a few downsides to credit union credit cards, though. One is 'cross collateralization' - that means if you have other assets (such as a deposit account) with the credit union, it can take those to pay the credit card.

Another factor you should consider is that some credit unions are small and underfunded, and have been finding it difficult to survive. Some have been taken over by the National Credit Union Administration. (Depositors should note that they are covered for USD 250,000 in any one credit union, just as they would be if they left their money in a bank.)

And you will need to become a member of the credit union before you can apply for the card. Some credit unions restrict membership to particular groups - for instance, Navy personnel, or people living in a particular community.

Not all credit unions offer credit cards - only about half of them do - so there is a bit of homework to do before you decide to join up.

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day CNBC

Definition: CNBC is the news channel that covers the financial markets. Advice: CNBC was criticized for its coverage of the dot com bubble during the late 90's because it took more of a cheerleader role than as an objective news source.Now, the network is required to report whether analysts it has...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com