@Anonymous wrote:
if people pay in full then the APR shouldn't matter. two of my cards have 22.99% but idc they get paid so i don't pay interest. with a 790 i doubt you do either
But then why do people on these boards regularly call in and ask for a reduction on their interest rate from 22% to 20% on their Chase cards or other major lenders? And if you really don't care, would you take an awards card at 45%?
Nobody starts out intending to run up a balance, but life does happen. You should prepare for the worst and hope for the best.
@Anonymous wrote:
DCU -- 9K -- got card before even applying for membership
Sure, but the question to the thread is weather a credit union credit card has bennifets. You didn't answer the question.
@Anonymous wrote:From ME CU CC's are known for having:
- High limits
- Low interest
- Often nice BT and/or interest terms
My CU gave me a 14.5% Interest rate on a $15k credit line when my utilization was horrible and allowed me to get out from under near $30% interest on other cards (long ago). There's no BT fee (though they're reeeaaally slow), and there's no phantom interest. (Meaning with Citi, I paid off my bill almost as soon as a statement was cut where I'd been charged interest and the next month I was charged. $1.23 interest because it was interest on that one day and interest on the interest, I think.)
Thank you, for sharing!
@CH-7-Mission-Accomplished wrote:Very high limits easily obtained with decent scores and supporting income (limits like 30K).
Very low interest rates compared to banks (typically 6% to 10% based on FICO score).
If you ever actually need to carry a balance on a card, CU's will not shut you down for utilizing your card as the big banks will.
You didn't ask for names, but I'm giving two of them anyway (if your credit is excellent)
Penfed
NASA
Good point! The credit union credit card could be used if a bal. ever needed to be carried, even though I rarely carry a bal. Thank you, for the recommendations! I'm deciding weather a credit union credit card would be useful or not. If not, I wouldn't want to spend several hours finding a credit union credit card only to realize it's not for me. Taking one step at a time, thank you again for your help!
@Anonymous wrote:My favorite thing about my credit union credit card is the high limit, low interest rate and if I advance cash they dont charge me a cash advance fee so its great in an emergency.
Thank you for sharing! I don't use cash advances, but I can see where you are coming from.
@Anonymous wrote:
the true answer is no. it makes no difference. other than terms and APR and all that jazz it doesn't make a difference on your portfolio. i have 2 credit union cards and lenders don't care lol. it's just a card....
I would argue that it would make a difference to other leaders. The CL that you have with the credit union could impact what other lenders give you.
@Anonymous wrote:
SDFCU. Gave me 6.99% APR and their rates on other loans are incredible, new auto 1.99%. I'm very glad to carry SDFCU. While other cards will offer low 0% intro rates, I haven't found any that offer 6.99% as normal. Heck, they even charge 6.99% for cash advances, which I don't use, but is still unheard of. I did receive the lowest APR they offer based on my 790 EX score. I'm not running out to apply for multiple CU's, as I've done with my CC's, but I am happy to have a relationship with one CU.
So, you didn't really state your main reason(s) for having a credit union credit card. However, judeing from your responce you seem to have one become you admire the APRs that credit unions offer? Do you carry balances or do you keep this card for an emergancy in the need of carrying a bal.?
@Anonymous wrote:
if people pay in full then the APR shouldn't matter. two of my cards have 22.99% but idc they get paid so i don't pay interest. with a 790 i doubt you do either
I don't have a 790 for a TU, EX or a EQ. However, I don't typically carry a bal. Still, I believe the APR is still important.
@CH-7-Mission-Accomplished wrote:
@Anonymous wrote:
if people pay in full then the APR shouldn't matter. two of my cards have 22.99% but idc they get paid so i don't pay interest. with a 790 i doubt you do eitherBut then why do people on these boards regularly call in and ask for a reduction on their interest rate from 22% to 20% on their Chase cards or other major lenders? And if you really don't care, would you take an awards card at 45%?Nobody starts out intending to run up a balance, but life does happen. You should prepare for the worst and hope for the best.
Good points! Rather have a low APR and not need it, than to need a low APR and not have it.
@Anonymous wrote:
if all cards were 45% then people would still have them. in the 60s and 70s cards were 2-5%.... if they went from that to 20% they'd poo themselves. if i had a 45% card and all my others are 13-20% then sure i would close it out of principle. if they all were then i would use them the same as now.
The ealier post you said that APR does not matter because you PIF. So if there is a significant difference between APR that would prompt you to close it, then why would it matter? I'm just trying to understand.
@CH-7-Mission-Accomplished wrote:
@Anonymous wrote:
if all cards were 45% then people would still have them. in the 60s and 70s cards were 2-5%.... if they went from that to 20% they'd poo themselves. if i had a 45% card and all my others are 13-20% then sure i would close it out of principle. if they all were then i would use them the same as now.I totally understand your point. I really do. I just think that in building a portfolio, you should plan for the unknown, and as you know, the time to secure low rate cards is when you do not need them. If you ever do need them, you can't get them. And since they are high limits, no annual fee, free balance transfers, why not? I'd rather SD a 30K CU card than a crappy $300 Target card.
I agree. It wouldn't be a bad idea after all to have a credit union credit card for the high CL and low APR, for simply 'just in case.' Even if the card would go in the sock drawer, which is exactly where mine would go.
@Anonymous wrote:
oh for sure lol. my credit union card was my first card ever and they got me at 12.99% in 2009 (not bad for an 18 year old with no credit and a secured card lol)
all my others are 16-23 but i guess i just look passed that due to paying them off. i have a line of credit at 9.9% (which in MY case is better than my CCs, so i am sure you all could do better) and that's what i would use if crap hit the fan. balances on cards scare me lol. been there done that...
Okay, now I'm understanding your stance on credit union credit cards now or low APRs. You would use it in a 'wrost case senerio' if the need to carry a bal. was ever nessesarry.
@core wrote:
@CH-7-Mission-Accomplished wrote:
And if you really don't care, would you take an awards card at 45%?
I would, you betcha. If there was a 3% on everything card, I'd be all over that even at 4445% APR. If you need to run a balance, you don't do it on that card. Pretty simple really. And 0% intro cards are a dime a dozen. If you're about to be in trouble, apply for one and put your stuff on there for 12-15 months.
As for being prepared for the worst, the best defense against life happening is a sizeable amount of cash that you can get your hands on. Doesn't have to be quickly available, just in 30 days or so. It only takes about 4-5 business days to sell off some ETFs and get the cash in your bank account.
Now sure, if my roof collapses next week AND my septic system fails AND my cat has a $10k+ vet bill, I may be in a bit of trouble. But I'm not running up credit card debt no matter what happens. The cat will go to the vet, but I'll live in a broken-down camper I have sitting here until I can fix the roof, and as for the septic system, I'll spare you the details heh. For medical stuff, which is admittedly unavoidable, an HSA and a catastophic plan is all you need.
The point is there's almost always another way. If your water heater bursts/fails, you buy a used one for $50 and learn to solder. A child could do it. Roof leaks, get up there with a can of tar and screw what the neighbors think about your ugly roof. It's just temporary. And if you total your beloved $15k car, then you buy a $500 junker and drive it. So many so-called "emergencies" are really "I don't want to be inconvenienced or do something unpleasant".
So, instead of having a credit card with a low APR you feel it's best to aquire a 0% intro card when the need for a carried bal. arises? What if it's an absolute emergancy and you can't wait 7-10 business days for the card to arive? Yes, I know I'm being extreme here on the "What if" and conservative on the "7-10 business days." Just picking your brain is all.
I'll speak for myself, however I'm a college student who doesn't have a emergancy fund. Yes, no emergancy fund but I've been avoiding student loans by using these savings. On the flip side of the coin, I don't nessesary need a large emergancy fund because I'm a college student. 6 months of living expenses for me include insurance and gas, that's it. I can't remember, but I think it totaled out to be $750. I understand having and using an emergancy fund is important, but for some like me an emergancy fund is unreallistic. I'd rather pay 10% APR on a credit card if I need it, than take out a loan and actually be paying 5% while I have unused funds sitting on the sidelines. I know this is getting very deep, but at the end of the day. It might not be bad idea to have a back up plan, to your back up plan!
@Anonymous wrote:For me, a local credit union helped boost my credit enormously. Last year while signing up for a bank account at a credit union with my wife, the lady informed me that I was pre-approved for a 20k credit card, without a hard pull, only a soft pull. It had 9.99% APR, and rewards that weren't awful. This was when I only had two other credit cards with the highest limit being 4.5k. No hard pull and such a high limit was basically a miracle for my credit.
The lady that was helping us sign up for the bank account was also the lending manager, or some similar title, so maybe I wouldn't have got the card with just a soft pull if it was a regular employee signing me up. But, it could be worth a shot to open an account at a credit union in hopes of getting high CL card without the inquiry. I guess you could also just go in and ask if you can get a card with a soft pull as well.
Regardless of the soft pull, the card that the credit union gave me was far, far superior to any other card I could've gotten anywhere else. Not even close, credit unions can really give sick deals.
Utilization isn't currently an issue. I'm at the beginning stages of a career, so I do expect income to grow over the course of lifetime, of course. In turn raising utilization. Thank you, for sharing! I be sure to ask about a soft pull if it's avaible.