what's the difference between a bank and a credit union?

[GTT]

they both issues cards, and offere all kinds of accounts...so what's the real difference.

[samm90]

One is for profit, the other isn't.

[GTT]

OK, then what does that mean for us, consumers?

the saving/cd rate of CUs are higher than those of banks, if I may understand it this way. 

[FinStar]

---

@samm90 wrote:
One is for profit, the other isn't.

---

+1

And, as Revelate mentioned in another post:

CU's are non-profit: their earnings are returned to their shareholders (the members of the credit union).  Banks are, well, banks.  CU's often will have attractive rates on things like auto loans and low APR's on credit cards as you've noticed; sometimes they have a more personal touch than a typical national lender.  In particular with their credit cards usually it's low APR, but on a couple there's competitive rewards structures as well, but that's more the exception than the rule.

[GTT]

thanks for the explanation. So if I always PIF then I probably won't need their credit card but if later when I consider a car loan, they might be a better place, righ?

[samm90]

For credit cards, it seams cu's have lower apr's and higher limits. Banks have better rewards. A few exceptions are barclays ring and a few 5% gas cards. And of course amex limits.

[samm90]

Sounds right, but you may also get better interest on a savings account with a CU.

[GTT]

OK, understand now, basically if I need to carry some balance, it's better for CUs; if rewards, then go for those banks'

. Does Credit Cards from CUs have the same weigh as those from bank in terms of contribution to FICO scores?

[drkaje]

CUs can also be a little more friendly to people on the mend.

[FinStar]

---

@GTT wrote:

OK, understand now, basically if I need to carry some balance, it's better for CUs; if rewards, then go for those banks'

. Does Credit Cards from CUs have the same weigh as those from bank in terms of contribution to FICO scores?

---

Yes, same weight as those from major banks.