topic curious situation with credit union in Credit Cards

curious situation with credit union

juggalo9er — Tue, 08 Jul 2014 01:57:12 GMT

as can be seen in my signature below, i have a card with forum credit union under their "B" tier. i went into the branch to refinance a loan of mine and was told that based on my score i qualified for the "A" card, which has a lower rate. whats confising to me is the fact that they refused to simply transition my current card to the "A" card with a lower interest rate, i had to be issued a new card while keeping the current one. I am curious if this has ever happened to anyone else and how common it is? btw, the second card has a substantially higher limit and a marginally better interest rate.

Re: curious situation with credit union

s73guy — Tue, 08 Jul 2014 02:08:36 GMT

I had a similar situation happen to me through my credit union. Although, the circumstances are not exactly the same. My credit union started offering a rewards Visa that gives you cash back or other rewards. At the time I had the credit union regular Gold Visa. I was told that I had to apply for the rewards card, and if approved then they would change my card over. I did apply, and got approved for a much higher limit with a better interest rate. However, I also got.....a HP on my credit report, a new account on my credit report which reduced my AAoA (they did not backdate the history on the new card even though they closed the old card). So, not exactly the same, but YES I did have to reapply at my credit union as well.

Re: curious situation with credit union

juggalo9er — Tue, 08 Jul 2014 02:11:54 GMT

this is a card they have been offering for at least as long as i have been a member with them.....1% cash back, simply went from 9.24% to 7.24%

Re: curious situation with credit union

gdale6 — Tue, 08 Jul 2014 02:22:52 GMT

A typical standard faire CU move, with my local went through 3 cards to finally get the best rate card, close old open new with no backdate to original card date.

Re: curious situation with credit union

TRC_WA — Tue, 08 Jul 2014 04:33:43 GMT

My BECU doesn't do it like that...

The rate is 6.9% to 17.9% and changes as your scores improve. I'm currently on the 10.9% tier and it's by far my best rate and best limit. A new APR doesn't require a new card probably because this is the only card they offer, despite the fact they are the 4th largest CU in the USA.

Re: curious situation with credit union

juggalo9er — Tue, 08 Jul 2014 11:36:54 GMT

forum is local fsaik ....guess it is odd

Re: curious situation with credit union

takeshi74 — Tue, 08 Jul 2014 14:34:46 GMT

@juggalo9er wrote:
whats confising to me is the fact that they refused to simply transition my current card to the "A" card with a lower interest rate, i had to be issued a new card while keeping the current one. I am curious if this has ever happened to anyone else and how common it is?

No idea how common it is but it's up to each creditor to determine how they handle such changes. It's not uncommon, for example, for consumers to have to open a new account with Chase if a lower APR is desired. With some creditors some have had luck going through the EO for such changes.