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With raising rates, hidden fees and other tricks and traps of major credit card companies, the question on everyone’s mind is - Is there an alternative to
bank credit cards? The answer is YES. There is an alternative - Credit Unions. According to the National Association of Federal Credit Unions
classic credit cards issued by banks have an average interest rate of 14.56 % with a high of 24 % and a low of 6.25 %, and for those issued by credit
unions an average of 12.02 % with a high of 18.49 % and low of 5.9 %. These values for gold credit cards issued by banks range from 7.25 % to 21 % and
that of credit unions range from 5.5 % to 17.99 %.
Why do credit unions charge less fess?
There are two main reasons for this:
1) Credit Unions are cooperative financial institutions. In others words it is owned by the people who save and borrow from the union. Members pool their money together and provided loans to benefit its member and not to make a profit.
2) Credit Unions are non-profit. While banks need to make a profit to stay afloat and find creative ways to charge or name new fees to make a profit, credit unions main goal is for the enhancement of its members.
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Because credit unions are non-profit cooperative financial institutions, they are exempt from most state and Federal taxes and can pass this savings on in the form of higher interest rates on savings and lower interest rates on loans.
How to join a Credit Union
If you are not a member of a credit union, here is a list to find one to join:
Ask your boss - Your company may sponsor a credit union which allows employees of the company join. There could also be a credit union for people in your trade.
Ask Friends - Seek out friends, they may be in credit unions and can assist you in joining a credit union or introduce you to someone who may be able to assist you.
Ask your neighbors - Community credit unions serve members that are united geographically.
Check your College/University - If you are a student there are credit unions that serve students of the university.
Ask Family Members - If you have a family member that belongs to a credit union, you may be eligible to join that credit union.
Visit this site to find a credit union.
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