Large financial institutions constantly bombard our mailboxes with letters claiming you’ve been “pre-approved” for a credit card that offers unbelievably low interest rates. Usually, they’re much too tempting to decline. But, one look at the fine print reveals the hidden fees and rates. There’s no need to get sucked into a world of high penalties and even higher interest rates. Credit unions are geared toward providing services their members are comfortable with. The following are just some of the reasons for why credit union credit cards are often more valuable than bank credit cards.
Credit unions are member owned. They are not bound by the same pressures as larger financial institutions, which function to maximize profits and please investors. The extra revenue brought in by credit unions is reinvested in its members via lower mortgage rates and better rates other services.
Credit unions offer lower interest rates and lower caps. The average APR for credit union credit cards is several percentage points lower than bank credit cards. Interest rate caps are also lower, by government mandate, on services ranging from credit cards to home loans.
Credit unions offer lower fees and penalties. Credit card penalties from credit unions are considerably less, particularly in areas like overdraft fees or late penalties. The average CU member pays $20 for late bills, while banks charge about $39. Cash advance fees are also at least five percent lower at credit unions.
Credit unions provide increased services. A survey released by Prime Performance Bank in 2012 revealed 89 percent of credit union members are satisfied with their financial institution, nearly seven points higher than the national average for customer service in large banks. Over 70 percent of members also believe their credit union places a customer’s financial interests above all.
To learn about our Valley Federal Credit Union credit card interest rates and benefits, contact the Brownsville main branch at 956.546.3108. We’ll help you apply for one today!