Where you decide to do your banking can have a direct impact on your financial success. Credit cards can be valuable tools in building your credit and paying for unexpected expenses, but only if the card you secure makes sense for your unique financial situation.
Credit unions issue credit cards to their patrons once an application is submitted and approved. If you find yourself wondering which credit card you should secure, keep the benefits that a credit union credit card can offer in mind.
1. Lower Fees
Financial institutions are authorized to charge their customers fees for certain services that are provided. The administration of your credit card, processing fees, and late payment fees can become quite expensive over time.
A credit union operates as a not-for-profit institution. This means that fees are kept as low as possible on all financial products issued by a credit union, including their credit cards. You can save a significant amount of money while your credit line is open by opting to get your credit card through a credit union.
2. Lower Interest Rates
Interest is considered the cost of having a credit line. In exchange for the privilege of having access to the funds available on your credit card, you pay an interest fee on all money that you spend from the credit account.
The government sets maximum limits on the interest rates that credit unions can charge. These imposed limits mean that the interest rates for a credit union credit card will be some of the lowest available on the market at any given time.
If you are planning to make a lot of purchases using your credit card, going through a credit union will help you save money on interest fees.
3. Better Customer Service
Credit unions typically operate on a local level. Unlike larger banks and other financial institutions, a credit union doesn't have thousands of customers to serve in the course of a day.
The employees at your local credit union branch get to know their customers on a more personal basis. This personalized interaction allows you to experience a greater level of customer service than you would get from a larger bank's call center.
It can also be easier to get approved for a credit card if your financial history isn't spotless when you partner with a credit union. A credit union is more likely to take the time to reconsider a denied application and factor in extenuating circumstances to help you get approved.
For more information on credit union credit card applications, contact a credit union in your area.