Is a Credit Union Credit Card Worth It?
Applying for a credit card at a credit union is different from applying for a credit card at the bank. Some people even ask, “do credit unions have credit cards?”. We get it. Credit cards from credit unions aren’t advertised as often as other services and products.
Credit unions not only have credit cards but they can offer their credit card holders unique benefits. Often, they’re able to offer lower interest rates and limit fees that tend to be associated with credit cards.
When you apply for a card at a credit union rather than a bank, you’re more likely to be offered flexibility. Credit unions are often willing to reassess credit card applications, leaving wiggle room for individual circumstances and fostering a long-term banking partnership with members.
What Is a Credit Union?
A credit union is a nonprofit banking organization. Those who bank at a union are members rather than clients or customers. Since credit unions aren’t obligated to pay investors and they don’t have to pay sales and use taxes, they are often able to pass on financial benefits to their members.
Credit unions are typically smaller and more community-focused than banks. Both are federally insured, making it safe to deposit your money at any insured institution. However, since credit unions are smaller, they are typically more localized, so you won’t see locations nationwide like you would with big banks.
Anyone can become a member of a credit union like DCU. Some specific credit unions might require their members to live in a specific location while others accept people no matter where they live. Learn more about becoming a DCU member today.
Overview of Credit Union Credit Cards
Credit union credit cards have plenty of benefits that can meet your specific needs. All of DCU’s cards come with no annual or foreign transaction fees (see rates & disclosures). You’ll also be notified when your transactions show signs of fraud. Should that happen, we can quickly freeze and unfreeze your credit card.
With interest rates below the national average, mobile wallet compatibility, and even deals on grocery delivery – DCU’s credit cards are all about making your everyday transactions affordable, simple and convenient.
Are credit union credit cards good?
All credit unions are not the same. It’s important to research a union’s credit card benefits, fees and limitations before applying.
Here are some reasons why a DCU credit card is better than most:
- Interest rates and APR – The APR (or annual percentage rate) for a DCU credit card is lower than the national average of 20%. Explore our DCU Visa® Credit Cards page to view our current credit card rates.
- Rewards programs and cash back options – The DCU Platinum Rewards Card maintains a low APR while offering a point system. Every time you shop,you’ll earn points to spend on gift cards or travel. Easily track the points through your mobile app to see how many you’ve earned.
- Travel and purchase protections – All DCU credit cards offer travel accident insurance when used to purchase airline tickets. All card options also offer an extended warranty on eligible purchases.
- Identity Theft Protection – Backed by Norton Lifelock, DCU card holders can breathe easy knowing they will be notified and protected if a data breach occurs or if their card information is stolen.
Building Credit with a Credit Union Credit Card
Building your credit using a credit card is a good idea if you make your payments on time and keep your credit utilization low. Credit utilization is the amount of credit you use compared to the amount of credit that’s been offered to you. It’s best to keep your credit utilization under 30%.
Credit Union Credit Cards vs Bank Credit Cards
By now, we know that applying for a credit card with a credit union rather than a bank will often result in lower interest rates and fewer fees. However, there are reasons why people prefer getting credit cards from bigger banks. For instance, bigger banks can typically offer 24/7 customer service. You might have to wait until business hours to talk to someone on the phone at a credit union. However, if you aren’t interested in waiting a long time on a phone tree to get your credit card answers, credit unions might be for you.
Applying at DCU: Is a credit union credit card worth it?
Every cardholder’s needs are different. Deciding what credit card will work best for you is up to you. Before you decide, take a good look at the many benefits of all of the DCU credit cards, none of which require annual or transaction fees. Would you prefer a lower interest rate or getting points back from every purchase?
Whatever card works for you, know that all of the DCU cards come with friendly customer support and identity theft protection to keep your credit safe as you make your everyday purchases. Ready to apply? Get your application started!
Please note, membership is required to open a DCU Checking or Savings Account. Visit our membership eligibility page for more information.
This article is for informational purposes only. It is not intended to serve as legal, financial, investment or tax advice or indicate that a specific DCU product or service is right for you. For specific advice about your unique circumstances, you may wish to consult a financial professional.
