Should I try to get a CC from my credit union ?

RCFL · ‎05-25-2014

I've been thinking of applying for a CC with my CU but don't know if I should ! I don't need another credit card. I am currently holding, Discover, Barclays, CapOne, Sportsman, Expess and J Crew. I opened the 3 Comenity cards like 3 months ago and am already thinking about canceling them. I don't even use them. I for those from the shopping cart trick. Is it more beneficial to me and my CU if I have their credit card as well? I am struggling and don't know if I should .... Help me and give me your opinions. Thanks.

gh17 · ‎05-25-2014

I thought about opening a card with a credit union recently, but ended up just putting $15 in a checking/savings to become a "member" instead. The only real benefit was having a card with a really low interest rate in case I ever needed it. I was ideally looking for something really low, like lower than my car loan (8%), and the credit union was offering 8.99% (with a short 0% intro rate).

I found another nearby credit union with 7.25% credit cards that I could probably qualify for, but you were required to use the card once every few months or they'd start charging you for non-use (or technically, they'd start charging a non-use maintenance fee on the required checking account that was waived if you used your credit card often enough). Seemed to complicated/annoying to me to have to remember to use a no-rewards card more than once a year or so, so I passed, since I'm probably going to get the car loan paid off soon enough anyway, plus have 0% offers that I can put purchases on.

I always pay in full, but I figured a low interest card couldn't hurt to have, especially in case I finance another card in the future, and with old used cars it's hard to get a decent rate. But for now I'm not bothering.

Anyway, the main things you need to consider would be

1) Do you have any use for a low interest credit card/would you be likely to qualify for their lowest rate card anyway?

2) Do you think that the credit unions near you have significantly better loan rates than other institutions? If so, it might benefit you to "start a relationship" with them, but I also think you could probably start that relationship via a checking or savings account.

If you do open the card, watch out for fees - I know a lot of people have great credit unions with low fees, but in my experience, smaller institutions have trickier fees than the larger banks I've used. (E.g. I get charged for using my debit card as debit instead of credit - PIN vs. signature - what is that about?)

gh17 · ‎05-25-2014

Also, being that you're already saying you "don't need another credit card," I'm thinking the answer here is no.

RCFL · ‎05-25-2014

Thanks for your insights. I have a checking and saving with my CU, maybe I'll put off on trying to get a card for now. All my CC are relatively new and all have 0% interest for 12 months. I don't carry a balance except a small one with Discover because I heard discover likes balance. Eventually I want and will get a car loan and a mortgage with my CU but who knows ....

wacdenney · ‎05-25-2014

I like having my CU CC in my wallet simply because of the super low APR. I put one charge per month through it and just look at it as a "just in case" card. It's there if I need it one day and it helps me build my relationship with the CU.

NikoD · ‎05-25-2014

I briefly considered getting a CC from my CU because of the low APR. However, since I haven't carried a balance on a CC in many years, it didn't seem like a good fit for me right now. I'm keeping them in mind though in case I have a need for that in the future. BTW the APR was 5.9% (3.99% 6 month intro rate). If you don't have a use for the card right now I'd skip it. You can always change your mind later if you think it has become a good fit for you. As was mentioned earier, if you want to start a relationship with the CU, a no fee checking or savings account would work just as well (just make sure it's a no fee one!).

ExplicitElicit · ‎05-25-2014

A CU card never hurts to hold, I would however let my credit cards age before applying for another one.

Energy One FCU $5,000 (Now Elan Financial)

eagle2013 · ‎05-25-2014

Just thinking about this very thing today with my account at BECU. Good responses - think I'll hold off.

changingmantra2 · ‎05-26-2014

Someone else will have to say if this has any viability - but I got a CU CC with the State Employees Fed CU last year for one reason only: to establish a positive credit history with them in case I want to get a mortgage through them in the future. I hope it will increase my chances of approval and of getting a low rate.

“We delight in the beauty of the butterfly, but rarely admit the changes it has gone through to achieve that beauty.”
― Maya Angelou

takeshi74 · ‎05-26-2014

@RCFL wrote:
Should I try to get a CC from my credit union ?

You have to tell us -- not the other way around. If you don't need it then why are you asking? Help us to understand you reasoning and what you're looking to do.

@RCFL wrote:
Is it more beneficial to me and my CU if I have their credit card as well?

Again, you have to give us info to work with. What are you expecting from the card? What purpose would it serve? If you have to poll to scrounge up justifications then you probably should not. You should be basing your justification on your needs/wants/goals/priorities/preferences and not those of other forum users whose critieria could be entirely different from your own.