Should You Get a Credit Union Credit Card? (2024)

FAQs

Should You Get a Credit Union Credit Card? ›

Go with whatever is most convenient for you. For credit scoring purposes, either can be a good choice. Some have mentioned that the APRs are generally lower with credit cards from credit unions and that is often true.

The lower interest can provide you major long-term savings, particularly if you carry a balance on your credit card from month to month. Many credit union credit cards come with travel insurance, extended warranty protection, or even price protection.

You need a credit score of 700+ to get a credit card from most credit unions, though some credit unions have options available for people with bad credit or no credit history. There are credit union cards for every credit level, and some of the best credit union cards are only available to people with excellent credit.

There are many differences between credit unions and banks, but both routinely check credit reports and credit scores as part of their application process.

While the individual options may differ from one to the next, most credit unions offer custom loan programs designed to help borrowers establish credit for the first time or rebuild damaged credit. Some credit unions use aptly-named “credit builder loans” that function much like secured credit cards.

Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass. May offer fewer products and services.

Credit limits for credit union credit cards are often lower than the limits that traditional banks offer, at least when you first open the card. Your limit should increase, though, once the credit union you're banking with sees that you are able to make your payments on time.

Navy Federal Credit Union

This option for a small loan amount is why Navy Federal also made our list of the best small personal loans. NFCU's loans also have lower rates than most — its max APR is 18.00% — and it doesn't charge origination fees or prepayment penalties.

What credit score do you need to get a $30,000 loan? ›

Requirements to receive a personal loan

This allows them to look at your history from the past seven years and see whether you've typically made payments on time. For a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate.

For example: A history of writing bad checks. Some people are listed in a database of customers who have been identified as having mishandled checking accounts in the past, which means the bank or credit union is less likely to let them open a checking account. Failure to provide adequate identification.

If a bank or credit union denied your application for a checking account, it may be because a checking account reporting company has negative information in its files about your checking history.

The Bottom Line. Credit unions can be ideal for a low-interest loan, lower mortgage closing costs, or reduced fees, but you'll need to qualify for membership. Larger banks may offer you more choices regarding products, apps, and international or commercial products and services, and anyone can join.

Do you need a good credit score to open an account at a credit union? No, credit unions do not check your credit score when you are opening a checking or savings account. However, they do often check your banking history so you may have issues if infractions occur repeatedly in your report.

Bank cards tend to be a better option for everyday expenses but could also have a few drawbacks. Pros: Typically, lower interest rates and higher credit limits. Robust fraud protection.

Local and personalized service.

Credit unions are a great choice if you are looking to have a voice in the way your financial institution is run, save money on interest and fee expenses, earn more on your savings, build relationships with those who serve you, and get timely decisions on your financial applications.

The main benefits of a credit union vs. a bank are that credit unions tend to offer better rates and customer service, lower fees, and a national network of ATMs. However, a bank may offer more branches and products than a credit union.

Our credit union current accounts provide everything you'd expect from a bank account, with a convenient debit card, the ability to set up direct debits, and access to cash machines both here and while on holiday.