In my opinion, since credit union membership at your small community CU means that your community is support your CC health as a whole, banks could look at small-time credit unions as 'secured' credit cards because regardless if you pay on time or default, the smaller CU will cover that tail just to save their own rating.
Larger CU's like USAA, NFCU or PenFed, which are government-backed to some degree, understand that they don't have to give you credit and can, when they do, offer to go out on a limb for your business since their internal risk is lower. That's why USAA and NFCU give crazy starting lines to members of all risk levels.
Big banks have their work cut out for them, having to advertise their 'bread and butter' cards to leverage banking business altogether. They don't need your business in the credit card department because they have other customers with investment, savings, checking and credit products with them - some since the 1930s. Old money is safe money.
At the end of the day, big bank CC's operate in bulk - for every 100 cards they pass out, they have an expected level of default figured into the bottom line. CU's are careful and are willing to help you out - treat you like a PERSON, in other words - when in trouble. (Ever seen the 'Can't pay your CC Bill' link in USAA? - find one of those in Chase)
Synopsis: Who really cares how the big banks see the CU's since big banks run credit card 'mills' and CU's are community backed entities who care about your growth. If not the case, wouldn't more CU's pull the most common big bank credit report - Experian?
Ch7 Discharge: 5/14/2016 | Target RedCard $900 | Merrick DYL $500
