Credit Union Credit Cards

[sophie]

I just opened an account at a Federal Credit in my area. Members of credit unions pool their assets to provide loans and other financial services to each other. Credit unions differ from other banks in several ways. They are non profit and owned by members like myself. These factors allow credit unions to pay dividends to their members (not shareholders) and offer them lower loan rates, higher savings rates and fewer service fees. You should try it.

[Terry684]

I read on a website that credit union credit cards are more easy to get approved for than a regular bank credit card, especially when it comes to rebuilding credit. I applied for a credit card from a credit union and was denied. Their reason is because I have a short credit history. I just started rebuilding last year in August. I think I'll wait about 4 months and apply for another credit card from a different credit union. The good thing I like about the credit union credit cards is that their rates are fixed. I refuse to apply for any sub prime credit cards. Even though I pay my credit card bills in full each month and never go over 30% I haven't received a pre approved offer in the mail from a credit card company. I checked my credit reports and all the baddies are gone. I guess its because of the economy.

[skeewee08]

Hello Terry: I work at a Credit Union and depending on your relationship with the CU it is a lot easier to get approved(do you actively bank there, make deposite, direct deposit), If you are credit challenged what you can do is go to your Credit Union and ask for a secure credit card let's say $300.00 or $500 and after 6-12 months asked to be considered for a regular credit card.

If you never had a loan with the Credit Union a secure signature loan or credit card would be a good start to help you build a relationship with them; I can tell you once you have that relationship with them it will be a lot easier to get approved I know we take care of our members tht take care of us; also if you are ever in a financial hardship the Credit Union can work with you a little better than the "BIG BANKS" will.

[ColoNative]

When I was new to credit in 1998 I was told that credit unions are easier to obtain loans from as well. I joined a local credit union with the sole intent to obtain a car loan. They flat out declined me. Had to finance with Bank One instead. This same credit union also declined my sister for a car loan and a Visa. Needless to say, I am no longer a member of that credit union. I should also note that three years ago, before the economic crisis, that credit union was seized by the State of Colorado!

My advice, if you can, join a larger credit union. Every state has their own strongest credit union or if you can join a larger, healthy national credit union like Pentagon FCU, Navy FCU and NASA FCU that could help. You may also need to look into a secured card from a reputable credit union. Now, once you have established credit with the credit union, they will give better rates but these days everybody is getting tight with lending so income and credit score talks.

Another thing you might try is what is known as a share secured loan. Take out a $500 loan using your share account (savings) as security. They will likely give you the loan since it is essentially secured (but you have to have the money in savings in order to do this). Just do a 12 month repayment and bam! you have credit with them and they will be more inclined to issue a credit card to you.

Another thing to watch out for is that some smaller credit unions actualy use BofA, First National Bank of Omaha and Elan Financial Services to issue their credit cards, so you may be dealing with another creditor other then your CU.

[skeewee08]

Agree ColoNative: Also it depends on your city my husband is a long time member of the second largest CU in our State and he was denied a $1,000.00 loan twice over diffrent years. So I was a member of a small CU and when we got married we added him to my loans to help in the rebuilding process.

Now he has been a member of the CU that I work at since (3-2008) and can bascically get any kind of loan not because I work there but because we started him off with a secure collateral after 6 months he got approve for a Visa cc $1,000.00 limit and he has paid off every loan(2) and his credit card limit is $5,000.00.

So it does depend on the Credit Union but like I said and ColoNative said start with a secure loan or secure credit card. And your credit Union will start to work for you.

[Terry684]

[quote=skeewee08;20186]Hello Terry: I work at a Credit Union and depending on your relationship with the CU it is a lot easier to get approved(do you actively bank there, make deposite, direct deposit), If you are credit challenged what you can do is go to your Credit Union and ask for a secure credit card let's say $300.00 or $500 and after 6-12 months asked to be considered for a regular credit card.

Skeewee thanks for your suggestions. I have 3 credit cards and my scores seems to be very good. The credit union I applied with told me that my credit history is not long enough. I'll try applying at another credit union in my area. They told me they didn't see anything negative on my credit report. I may ask them to reconsider their decision.

[skeewee08]

Terry: you can always request a meeting with the Credit Committe, I am on the Credit Committe at my Credit Union and a lot of members don't know that they always have this option.

I am sorry to hear that your Credit Union did not take care of you... but trust me their is a Credit Union out there that will apreciate you... like I said in the earlier post my husband was a member of the second largest Credit Union in our state and they showed him no love..(their lost)

[pamela2]

Sorry i know this isn't the right thread but i was wondering sis or anyone about the talk about credit unions. I have a checking and savings account at a credit union and i was wondering how they do car loans? Its called Upper Cumberland Federal Credit Union and i have had my checking account there for about 5 years is that good? Please any in for would be good.

[farmgirl]

I went to my credit union that I bank with and they set me up with a $500 secured visa- which I imediately paid down $450 so that it will show a lower balance when it reports. I had tried for a Jared card awhile back, and was recently denied for a TJ Maxx store card- so went to the people who knew me best...and it worked. :) Fico score currently is a 581 and the simulator shows it jumping well into the mid 600s by opening a cc with a $500 limit...so can't wait ot see that jump...my fakos are already at the mid 600's lol...

[Wanderer]

farmgirl - the bankcard has more general usefulness and carries more weight in the FICO calc. Note that the FICO calc claims to want to see a mix in credit that would include installment loans, mortgage loans, and department store cards too. In today's world CONGRATS! You did the impossible FG is glad to have you sharing your great news

[Joeyman]

Great work! And I'm glad to see you're banking with a credit union.

[belle]

I just opened an account at a Federal Credit in my area. Members of credit unions pool their assets to provide loans and other financial services to each other. Credit unions differ from other banks in several ways. They are non profit and owned by members like myself. These factors allow credit unions to pay dividends to their members (not shareholders) and offer them lower loan rates, higher savings rates and fewer service fees. You should try it.

Aside from having lower loan rates and service fees, are credit cards from credit unions recognized in major establishments/merchants?

[hjm331]

Aside from having lower loan rates and service fees, are credit cards from credit unions recognized in major establishments/merchants?

As long as they have a Visa/MC logo on the card, they can be used anywhere Visa/MC payments are accepted.

[belle]

thanks! :) actually, the difference between credit union credit cards and other cards is still not very clear to me. Most of those I know use credit cards from major banks/lenders because they don't have hidden fees; that's according to them. Is this true? I mean, does anyone have some reactions to this belief?

[Wanderer]

Bank Credit Cards that are issued with a Visa or Mastercard logo work equally well whether issued by a bank, credit union or non-bank... Usually Visa account numbers start with a "4" and MasterCard account numbers start with "5". As was previously posted in the global world, it does NOT matter. As long as the establishment takes one or the other you are fine no matter who issued it. All is equal. Card terms and benefits may be different but that is between the card holder and issuer and has no effect on the card's usage at a merchant.