When looking for financial solutions for their everyday necessities, potential customers often have to make an unusual choice between credit union credit cards and classic credit cards. Some people choose the classic solution because it looks more popular. They inevitably gain more confidence in things that feel common. On the other hand, research studies go into a different direction. From this point of view, credit unions look more consumer-friendly. The APR is one of the factors that make the difference. For instance, the APR on credit unions is normally lower than what classic credit card issuers charge. With all these, it does not mean that a credit union is for everyone. Do your homework before coming up with an application.
Becoming members and not customers
It is worth noting that a credit union is member-owned. It acts like a nonprofit organization that offers specific services for its membership. Banks work differently, as they look forward to make a profit. Apart from the annual interest rate, credit union credit cards also have higher over limit solutions, better cash advance opportunities and smaller late payment fees. Why? It is simple. Credit unions are nonprofit. In order to get all these financial benefits, it is important to join a credit union. Luckily, this is not so complicated. Find one in your area and sign up with it. You can then drop applications for loans (including mortgage loans), credit union credit cards and so on.
Keep in mind that nonprofit does not mean charity though, so you still have some responsibilities. Sure, the union may not be in business to make a fortune, but it is not there to lose money either. If you do not seem the ideal candidate for a credit card or a cash advance opportunity, you will be notified about it. The approach is more personal and friendly though.
Gaining a second chance
Unlike banks, credit union credit cards come with a second chance. Whether you apply for a credit card or a loan, there is the possibility to get turned down as well. At this point, you have the option to demand a second look at your application. Most of the committees are made of other members who analyze your situation from their point of view. Explain the circumstances. Maybe you are not in the best financial shape, hence the necessity to get a fresh financial start. You want a low interest credit card to benefit from a fresh start. This type of story might get you approved.
Just like for bank credit cards, credit union credit cards do take your income, expenses and credit history in consideration. In fact, these are the most important elements. But then, the committee also wants to see the desire and motivation in your request. Your bad financial situation may not always be your fault. Perhaps you have been through a serious issue caused by someone else or maybe you were a bit unlucky while gaining experience. If you are on your way up and it shows, the committee will take this into account.
A few other benefits of credit union credit cards include:
- The will to work with you during harsh times
- ATMs are available everywhere
- Many options regarding credit cards
