topic Re: Credit Union Vs. Big Bank in Credit Cards

Credit Union Vs. Big Bank

corymcd88 — Sun, 08 Apr 2012 20:52:41 GMT

I have two credit unions membership and I think that having a bank account a a big bank, Wells Fargo, PNC is a lot better then a credit union. I have at both credit union limited membership because my credit score is not over 700 FICO, that make me mad because to upgrade they will need to pull my credit again and their is no gradate that I will get upgrade after 6 mouth of good standing with them. I can go to any other bank and get a regular bank account and not have restriction on them. Has any one else had this happen to them?

Re: Credit Union Vs. Big Bank

CreditCrusader — Sun, 08 Apr 2012 21:13:15 GMT

@corymcd88 wrote:
I have two credit unions membership and I think that having a bank account a a big bank, Wells Fargo, PNC is a lot better then a credit union. I have at both credit union limited membership because my credit score is not over 700 FICO, that make me mad because to upgrade they will need to pull my credit again and their is no gradate that I will get upgrade after 6 mouth of good standing with them. I can go to any other bank and get a regular bank account and not have restriction on them. Has any one else had this happen to them?

I really think it depends on where you are on the credit spectrum. People with pristine credit tend to get fat offers from the big banks, whereas those who are on the fringe tend to either be shut out (BK/Judgment usually the kiss of death with most prime lenders) or approved with very small CLs.

Credit unions, on the other hand, will often give much better opening lines and terms and conditions for those in the 600-700 range and/or those with blemishes on their record. Just take a look at NFCU. They give people in the low 600s $10,000+ CLs with favorable APRs...and when it comes to local CUs, mine (3 Rivers FCU) gave me a CL and APR that beats what some prime lenders are giving what they deem to be "qualified" applicants.

This is all YMMV, but in general I believe it really depends on your particular credit profile and the types of credit unions you have access to.

Re: Credit Union Vs. Big Bank

corymcd88 — Sun, 08 Apr 2012 21:16:13 GMT

@CreditCrusader wrote:
@corymcd88 wrote:
I have two credit unions membership and I think that having a bank account a a big bank, Wells Fargo, PNC is a lot better then a credit union. I have at both credit union limited membership because my credit score is not over 700 FICO, that make me mad because to upgrade they will need to pull my credit again and their is no gradate that I will get upgrade after 6 mouth of good standing with them. I can go to any other bank and get a regular bank account and not have restriction on them. Has any one else had this happen to them?
I really think it depends on where you are on the credit spectrum. People with pristine credit tend to get fat offers from the big banks, whereas those who are on the fringe tend to either be shut out (BK/Judgment usually the kiss of death with most prime lenders) or approved with very small CLs.

Credit unions, on the other hand, will often give much better opening lines and terms and conditions for those in the 600-700 range and/or those with blemishes on their record. Just take a look at NFCU. They give people in the low 600s $10,000+ CLs with favorable APRs...and when it comes to local CUs, mine (3 Rivers FCU) gave me a CL and APR that beats what some prime lenders are giving what they deem to be "qualified" applicants.

This is all YMMV, but in general I believe it really depends on your particular credit profile and the types of credit unions you have access to.

My credit scores are in the 693 range, that is what has me mad.

Re: Credit Union Vs. Big Bank

navigatethis12 — Sun, 08 Apr 2012 21:33:07 GMT

@corymcd88 wrote:
PNC is a lot better then a credit union.

I never knew they would restrict membership because of scores. What I do not like about Credit Unions most is that most insist on doing a hard pull just to join. I did join one that only did a soft, but the other two required hard. No bank I have opened an account with has ever done a hard pull and it has probably been over fifteen banks. In my opinion PNC is the best bank ever. They even still have free checking accounts which is something a lot of other banks no longer offer. They also have a great cashback card. I would just leave the Credit Unions you have alone if they want to do another credit check. I do not see how one's score determines their checking account elegibility. You are lending the bank money, not the other way around.

@CreditCrusader wrote:
Credit unions, on the other hand, will often give much better opening lines and terms and conditions for those in the 600-700 range and/or those with blemishes on their record. Just take a look at NFCU. They give people in the low 600s $10,000+ CLs with favorable APRs...and when it comes to local CUs, mine (3 Rivers FCU) gave me a CL and APR that beats what some prime lenders are giving what they deem to be "qualified" applicants.

This seems to be true but they usually have awful rewards. Personally I would take a high rate if it means better rewards. It's great though for people that just want a low rate.

@corymcd88 wrote:
My credit scores are in the 693 range, that is what has me mad.

That is not really that low is it?

Re: Credit Union Vs. Big Bank

corymcd88 — Sun, 08 Apr 2012 21:41:35 GMT

@navigatethis12 wrote:
@corymcd88 wrote:
PNC is a lot better then a credit union.

I never knew they would restrict membership because of scores. What I do not like about Credit Unions most is that most insist on doing a hard pull just to join. I did join one that only did a soft, but the other two required hard. No bank I have opened an account with has ever done a hard pull and it has probably been over fifteen banks. In my opinion PNC is the best bank ever. They even still have free checking accounts which is something a lot of other banks no longer offer. They also have a great cashback card. I would just leave the Credit Unions you have alone if they want to do another credit check. I do not see how one's score determines their checking account elegibility. You are lending the bank money, not the other way around.

@CreditCrusader wrote:
Credit unions, on the other hand, will often give much better opening lines and terms and conditions for those in the 600-700 range and/or those with blemishes on their record. Just take a look at NFCU. They give people in the low 600s $10,000+ CLs with favorable APRs...and when it comes to local CUs, mine (3 Rivers FCU) gave me a CL and APR that beats what some prime lenders are giving what they deem to be "qualified" applicants.

This seems to be true but they usually have awful rewards. Personally I would take a high rate if it means better rewards. It's great though for people that just want a low rate.

@corymcd88 wrote:
My credit scores are in the 693 range, that is what has me mad.

That is not really that low is it?

That is the way i feel about credit unions, they seam to be no good and i get thing that are better at a big bank. PNC, USAA, Wells Fargo are some very good banks. Even Bank Of America credit card 123 cash back is a very good card.

Re: Credit Union Vs. Big Bank

LS2982 — Sun, 08 Apr 2012 21:43:57 GMT

Haven't went in on PSECU yet but I imagine a very nice line will come my way next year!

Re: Credit Union Vs. Big Bank

Open123 — Sun, 08 Apr 2012 21:44:29 GMT

I've never seen any CU ever offer the kinds of sign up bonuses and rewards programs such as the ones from Amex, Chase, or even Citi. I've read so many great things about CUs, but have never seen anything compelling from them--the only exception being the PenFed cards. Even for PenFed, the reward points earned aren't as valuable as the ones from Amex or Chase.

Re: Credit Union Vs. Big Bank

navigatethis12 — Sun, 08 Apr 2012 22:15:34 GMT

@corymcd88 wrote:
That is the way i feel about credit unions, they seam to be no good and i get thing that are better at a big bank. PNC, USAA, Wells Fargo are some very good banks. Even Bank Of America credit card 123 cash back is a very good card.

Most of the reviews I see for Credit Unions usually have people praising that they are on first name basis with the employees and customer service is excellent. Alliant is great for transfers though because it is next day all the time. People at PNC do not know my name and I am fine with that. As long as they deposit the cheque into the right account that is all I need. Their customer service is also stellar. Chase is also great with customer service. Citi is kind of 50/50. The 123 card is kind of bad in my opinion though. The cap is so low and there are other cards that give those bonuses with no caps. Bank of America is also very rude most of the time.

@Open123 wrote:
I've never seen any CU ever offer the kinds of sign up bonuses and rewards programs such as the ones from Amex, Chase, or even Citi. I've read so many great things about CUs, but have never seen anything compelling from them--the only exception being the PenFed cards. Even for PenFed, the reward points earned aren't as valuable as the ones from Amex or Chase.

I really wonder where Chase gets the money for these things. They even give some of the bonuses after the first purchase. The only product I know unions offer that most banks do not is the Rewards Checking Account. Now that most savings accounts are one percent or lower they are a great alternative.

Re: Credit Union Vs. Big Bank

pennccrn — Mon, 20 Aug 2012 18:35:40 GMT

I'd just like to piggy-back a question on this topic. When applying for higher limit cards (say, greater than $10,000) which institution is more apt to grant such a request, a credit union, a regional bank or a major bank. I know a lot comes down to UL and payment history, but I'm in the market for a new card and wanted to see which provider I could sign up with would give me the best option. I am aware that at this point, I wouldn't qualify, but would like to establish a relationship with a lender at which point I could get there at some point.

Thanks, look forward to your comments.

Re: Credit Union Vs. Big Bank

tboy1977 — Mon, 20 Aug 2012 19:18:55 GMT

I am not going to say either doesn't have its pros and/or cons but look at it this way: A bank is for profit, where as the credit union is non-profit (for service)

Credit Unions, because of their status as for service, tend to be more forgiving about past challenges and USUALLY won't balance chase you because of a minor financial hiccup. Big banks usually have a certain clout or prestige. They can offer more rewards because they generate bigger profits, but they have less loyalty. You own a share in the credit union. IF YOU are good to them, they are good to you. If they even smell that you are experiencing financial difficulty, they will balance chase you in a second. CUs offer lower rates and better rates on savings accounts because of their non-profit status. Banks tend to have more assets, and thus can extend higher limit loans, but are unforgiving about past debt and can blacklist you.

I tend to look at it like name brand vs. store brand. What things does it matter? What things do not? Me for example, I can live with store brand pasta, but MUST have Pantene conditioner.

I'd rather pay 10% APR at a CU than 20% APR at a bank with rewards.

FYI: I am surprised you are having such difficulty. Unless you have ChexSystems or Early Warnings entries, they are easy to qualify for. If those two are giving you grief, try like Hope Credit Union or Andrews FCU. You may have to join some non-profit, but then you get membership. Bigger credit unions tend to get more bank-like.

Re: Credit Union Vs. Big Bank

flowfaster — Mon, 20 Aug 2012 19:46:29 GMT

I personally think CU are over rated. I am all about the money, saving money and making money. I have no loyalty to either though. I make thousands of dollars every year off of major bank credit cards/sign up bonuses. Until CU start showing the money I will stick with banks. Except for Alliant for the fast ACH and deposit rates I would not even be a member at a credit union.

Re: Credit Union Vs. Big Bank

iMacDrew — Mon, 20 Aug 2012 21:10:32 GMT

I find that credit unions are a tad better.. for one the interest rates are lower on credit cards and loans. And they give better interest on Checking and Savings accounts. granted not all people carry a balance on their CCs but there in the event of an emergency im gonna go to my NFCU card because its the lowest APR cc I have. Its just something good to have imo.

Re: Credit Union Vs. Big Bank

improvingmycredit — Mon, 20 Aug 2012 22:23:38 GMT

I've been with both Banks and CUs. I currently have nothing but CU memberships now. Again, as with credit cards, it's a matter of personal taste or need. I found banking with BOA for example, the customer service to be sub-par and I felt more like a number then a customer. Took for ever to get things done and the service wasn't personalized. My CUs on the other hand have been nothing short of a friendly relationship. I get the same opportunities for banking products that I desire at lower rates and no bank out there can match consistently the loan products at unbeatable APRs that I get with my CUs. I carry both types of cards, CU MC/VISA and Big Bank Products. They both have their purposes in my wallet. When looking for a bank/CU... measure your taste in the desired relationship you want then decide. Smaller CUs definitely can't offer some of the services of the larger banks or provide some of the perks for those with huge wallets. If you are strictly looking for a CC type relationship, then a CU might not be a good fit for you either.

Re: Credit Union Vs. Big Bank

LS2982 — Mon, 20 Aug 2012 22:34:23 GMT

@LS2982 wrote:
Haven't went in on PSECU yet but I imagine a very nice line will come my way next year!

Re: Credit Union Vs. Big Bank

tboy1977 — Mon, 27 Aug 2012 19:27:15 GMT

I love my credit union.

Re: Credit Union Vs. Big Bank

dude11 — Mon, 27 Aug 2012 19:40:54 GMT

In my case one particular credit union in my local area has been working in my favor. I was able to get an unsecured loan which I never thought I would be able to get at the moment because of my credit history. Prosper.com couldn't even give me a loan. Not only that, but I decided to get a credit card from my credit union as well since they have fixed interest APRs on ther CCs which are lower than most big bank credit cards out there. I was also approved for the CC and they have given me the highest credit limit card as of right now.

Couldn't be more happier with this credit union than any other big bank. Now if you have excellent credit then I'm sure the CCs that are offered by most credit unions might not be as good as CCs from big banks. So all depends on your overall profile I guess.

Re: Credit Union Vs. Big Bank

Anonymous — Mon, 27 Aug 2012 20:51:09 GMT

It depends on the credit union you're looking for. I sit on the Board of Directors of a small credit union and we believe in helping people reach their financial goals and get back on their feet if they're faced with financial challenges. You'll pay higher interest rates sometimes, but you'll get a financial institution to take a chance on you and work with you, especially at a smaller institution. Are credit unions always going to offer the flashiest credit card products and nifty rewards? Probably not, but if that's what you're after, take your business to Chase. What credit unions can offer is a level of service and the personal touch you won't find at banks. If you want that, a credit union is the way to go.

Re: Credit Union Vs. Big Bank

Anonymous — Mon, 27 Aug 2012 21:22:06 GMT

I don't think credit unions are for everyone, but I personally love mine.

My husband and I joined our credit union 10 years ago when we needed a checking account. The only reason we went with the credit union at the time was that they offered completely free checking and savings accounts with no minimum balance required.

For the next 7 or so years we didn't have any credit, no credit cards, home loans, car loans, nothing. We didn't know anything about credit and we were scared of having any debt, so we just saved regularly and made all of our purchases cash.

About 3 years ago we realized that it was silly to avoid credit and that we would eventually need credit. So we decided to buy a new car and take out our first auto loan. We went to a dealership with 10k cash as a down payment and selected a $20000 car. Figured we would have no problems getting financed with such a large down payment.

The dealership said they would defiantly find us financing and let us take the car home with us that night and we were to go back the next day to sign the rest of the paperwork and find out about the financing. We got a call the next day and were told that the loan rate would be 24% and that they needed another 3.5k down.

We were so upset by this but decided that if this was what we had to do to get some credit then we would just do it.

So we went by our credit union to get another $3500 for the downpayment and we chatted with the teller about the situation. The teller told us that we really needed to speak with the branch manager and sent us right into her office. We explained everything to her and she pulled a credit report on us and filled out a loan application for us. She emailed it to the loan people and then called them personally. She explained to them that we had had our account with them for over 7 years and it was in perfect standing, never bounced a check or went over any limits and that we didn't have bad credit we just didn't have any credit. She said that she thought we deserved to be given a chance.

They approved the loan with our original 10K down and only 6.24% interest. They saved us thousands of dollars on that loan. And helped us start to build our credit history.

There are a few negatives to belonging to my small credit union. There is no cool iphone app, the online banking is decent but doesn't have as many features as some of the big bank sites, there are no cash back or rewards on the debit card, their credit cards have terrible rewards, etc.

But there are a lot of positives also. Everyone there knows my name, all of my accounts are free, visa debit is free, no minimum balance or other requirements, low interest rate loans, generous limits on credit cards, etc.

I never use the credit card from my bank because I get much better rewards on my other cards but I still think keeping my credit union account is worth it.

I am considering opening a checking account with chase this year but I have no plans on closing my CU account.

Re: Credit Union Vs. Big Bank

LS2982 — Mon, 27 Aug 2012 22:29:44 GMT

@Anonymous wrote:
I don't think credit unions are for everyone, but I personally love mine.

My husband and I joined our credit union 10 years ago when we needed a checking account. The only reason we went with the credit union at the time was that they offered completely free checking and savings accounts with no minimum balance required.

For the next 7 or so years we didn't have any credit, no credit cards, home loans, car loans, nothing. We didn't know anything about credit and we were scared of having any debt, so we just saved regularly and made all of our purchases cash.

About 3 years ago we realized that it was silly to avoid credit and that we would eventually need credit. So we decided to buy a new car and take out our first auto loan. We went to a dealership with 10k cash as a down payment and selected a $20000 car. Figured we would have no problems getting financed with such a large down payment.

The dealership said they would defiantly find us financing and let us take the car home with us that night and we were to go back the next day to sign the rest of the paperwork and find out about the financing. We got a call the next day and were told that the loan rate would be 24% and that they needed another 3.5k down.
We were so upset by this but decided that if this was what we had to do to get some credit then we would just do it.

So we went by our credit union to get another $3500 for the downpayment and we chatted with the teller about the situation. The teller told us that we really needed to speak with the branch manager and sent us right into her office. We explained everything to her and she pulled a credit report on us and filled out a loan application for us. She emailed it to the loan people and then called them personally. She explained to them that we had had our account with them for over 7 years and it was in perfect standing, never bounced a check or went over any limits and that we didn't have bad credit we just didn't have any credit. She said that she thought we deserved to be given a chance.
They approved the loan with our original 10K down and only 6.24% interest. They saved us thousands of dollars on that loan. And helped us start to build our credit history.

There are a few negatives to belonging to my small credit union. There is no cool iphone app, the online banking is decent but doesn't have as many features as some of the big bank sites, there are no cash back or rewards on the debit card, their credit cards have terrible rewards, etc.

But there are a lot of positives also. Everyone there knows my name, all of my accounts are free, visa debit is free, no minimum balance or other requirements, low interest rate loans, generous limits on credit cards, etc.

I never use the credit card from my bank because I get much better rewards on my other cards but I still think keeping my credit union account is worth it.
I am considering opening a checking account with chase this year but I have no plans on closing my CU account.

Thats just downright insane! They did my DW like that 24% APR on a 13K loan. I got the car in my name and refi'd it with PSECU for 2.49% APR.

I can almost guarantee you it was Santander who came back with the 24% offer. They should be shut down.

Re: Credit Union Vs. Big Bank

tboy1977 — Tue, 28 Aug 2012 19:16:34 GMT

I love my credit union. Besides NavyFed, Coke has been amazing. Now is Coke the credit union with the rewards and the fancy flashy cards? No. but I have a secured credit card at 18% APR, no annual fee, no monthly fee, no balance transfer fee, no cash advance fee. That is better than many big banks in my situation. I can NOT complain. And in two years, as long as I have no lates, the card will drop to 9.99%APR and no fees of any kind. Even a GOOD Chase credit card has interest rates HIGHER than what I pay now.