Credit unions more generous with CLs than big banks?

[Anonymous]

I've noticed credit unions tend to be more generous with CLs than big banks, especially for those of us building/rebuilding credit. Does anyone know why?

[cschick]

They have more of a hands on approach a human can look at the overall picture better than a computer which just looks at a set of rules. They also don't have the same profit structures as banks. Out at least those are my best guesses

[Leadberry]

---

@Anonymous wrote:

I've noticed credit unions tend to be more generous with CLs than big banks, especially for those of us building/rebuilding credit. Does anyone know why?

---

Credit unions are not-for-profit member-owned organizations, so they don't pay income taxes.  They also aren't at the mercy of shareholders who may want to collect on annual dividends.  This frees up more cash for them to reallocate as they please, allowing them to be a little more relaxed in their lending.

[2011beginnings]

I agree. Recently, I've been doing a lot of research on which CU to join in my area. I'm thinking my best bet might be donating to get in with PenFed but I'm not entirely sure.

[OwNt]

My personal experience has been that credit unions are less generous than banks. 

PenFed is my lowest limit, Alliant is among the lower ones, and DCU just plain refused membership.

[NJTurnpike]

PenFed is most definitely a great way to go. I'm doing the same in April. Going to split my pay between being direct deposited in PenFed and DCU with a token amount being sent to my current BigBank account to keep it open and free. aside from the convenience of ATM locations, I don't see why anyone would want to use BigBank account.

[navigatethis12]

---

@OwNt wrote:

My personal experience has been that credit unions are less generous than banks. 

PenFed is my lowest limit, Alliant is among the lower ones, and DCU just plain refused membership.

---

That and terrible rewards is why I don't have any cards from credit unions. On the other hand, you see people one year or two out of bankruptcy getting 15 thousand lines from credit unions. I don't think they are as tolerable about "churners" or people who just open a lot of accounts.

[Anonymous]

Thanks all. I'm thinking about joining DCU in the future (currently banking with BofA). Their credit products seem a little vanilla but worth considering if it's a high CL. Do they pull your credit report twice - once for joining and once for the credit card app?

[09Lexie]

---

@Anonymous wrote:

Thanks all. I'm thinking about joining DCU in the future (currently banking with BofA). Their credit products seem a little vanilla but worth considering if it's a high CL. Do they pull your credit report twice - once for joining and once for the credit card app?

---

Yes, they pull twice. I would definitely make sure your membership is open before applying. Others have had problems with being able to join recently. 

I have been with them for years, so I am not sure what they may or may not have  been doing differently in new memberships. 

[Anonymous]

---

@09Lexie wrote:

---

@Anonymous wrote:

Thanks all. I'm thinking about joining DCU in the future (currently banking with BofA). Their credit products seem a little vanilla but worth considering if it's a high CL. Do they pull your credit report twice - once for joining and once for the credit card app?

---

Yes, they pull twice. I would definitely make sure your membership is open before applying. Others have had problems with being able to join recently. 

I have been with them for years, so I am not sure what they may or may not have  been doing differently in new memberships. 

---

Thanks Lexie, I'll definitely pay more attention to the details if I apply.