topic Re: “Big Dogs” vs CU credit cards: Which do you prefer and why? in SmorgasBoard

“Big Dogs” vs CU credit cards: Which do you prefer and why?

designated_knitter — Thu, 01 Apr 2021 08:24:16 GMT

So lots of people seem to go after the Big Boys (Citi, Chase, Amex etc). Others would fall on their proverbial swords for CUs such as Navy, Penfed, Etc.

Is ther an advantage of one vs the other or is it the ooh-ahh factor?

Truly curious if the Big Banks have an advantage over the larger CUs.

thanks in advance.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Jnbmom — Thu, 01 Apr 2021 08:56:01 GMT

@designated_knitter wrote:
So lots of people seem to go after the Big Boys (Citi, Chase, Amex etc). Others would fall on their proverbial swords for CUs such as Navy, Penfed, Etc.

Is ther an advantage of one vs the other or is it the ooh-ahh factor?

Truly curious if the Big Banks have an advantage over the larger CUs.

thanks in advance.

@designated_knitter

I don't find any cards that have or I think having them is the "ohh-ahh" factor. I get cards that I can use for the rewards or I am looking for the BT deals that I need. I prefer my CU's because they have been more than generous . As for the mentioned Chase, Citi or Amex, with so many banks these days, they are all just another bank.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Anonymous — Thu, 01 Apr 2021 11:31:15 GMT

@Jnbmom wrote:

I don't find any cards that have or I think having them is the "ohh-ahh" factor. I get cards that I can use for the rewards or I am looking for the BT deals that I need. I prefer my CU's because they have been more than generous . As for the mentioned Chase, Citi or Amex, with so many banks these days, they are all just another bank.

I certainly agree with the first part, choose depending on what you want from the card. So if, for example, you need points that are transferable to partner airlines (for first class international travel where the cash fare is just "too much") I think you have to go to one of the banks. Or is the a CU that offers that?

And while some find CUs more generous, others don't, or at least find the banks as least as generous

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Anonymous — Thu, 01 Apr 2021 12:47:19 GMT

My favorite card is my BBVA ClearPoints. BBVA only saw fit to give me a $2K limit and it has been $2K since I got it 12/2018 but the endless offers are sweet as heck. I always have BT offers too even though I never use them. If I were to sit down and track how much money this card has made me, it would probably be surpass all other cards because categories like groceries and utilities are my biggest spending every month and those are the offers BBVA gives me.

My next favorite card is my Amazon Store Card. 5% cash back on all my Amazon purchases is huge considering that I'm disabled and homebound so all of my shopping besides groceries is done online. True, Synchrony can be twitchy, but they really helped my rebuild and I personally haven't had any big issues with them.

Third favorite is my AOD card. 3% cash back that's automatically redeemed for statement credit and a fixed 8.99% APR -- need I say more?

Next up is Disco. The categories don't necessarily fit my spending other than the grocery category but the ability to ask them for 0% on purchases has come in handy when I didn't want to credit seek but needed to finance a purchase.

After this I would put my NFCU Platinum. The low 5.99% APR and 7.99% cash advance APRs make it a great emergency card, the huge $19K limit they have given me makes this card make up almost 20% of my credit which is lots of padding while also being $6300 higher than my next higher limit which is my Disco, and NFCU's customer service is second to none in my experience.

All of this is to say that I have enjoyed the constant offers from BBVA but I have also enjoyed the fixed 3% from AOD and the generosity of NFCU. CUs in general don't have the competitive rewards structures that major banks can offer with a few exceptions like AOD (and time will tell if that card stays as good as it is) and Affinity FCU. I am also much less worried about getting a CLD from my CUs than from major banks because CUs tend to lend what they think you can actually repay rather than the bad faith lending that major credit card companies are known for (like if I charged my BCE up to its $5K limit, AMEX would be calling me for sure making sure I could pay the bill since I don't have those kinds of assets to their knowledge). The downside with CUs vs big banks is the tech behind those banks is generally much better, NFCU being the exception.

I think you'll find most of us will vote big banks for the rewards. Those of us who have NFCU, AOD, or PenFed will probably view CUs in a better light than those who aren't a member of them. It also boils down to what you need from your cards. Some CUs are generous with the BT offers. This year was the first time NFCU didn't do one for all of their customers going back to at least 2016 (I haven't explored further back) and DCU still did their annual 0% for 6 months for all members, PenFed has their standing 0% for 12 months with 3% fee, etc.

The answer to the question for me is that I don't prefer one over the other explicitly but rather like to have a solid mix of both. CUs are more of a hassle to join which is why I don't have more CU cards but even still, 5 of my 17 cards are from CUs.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

calyx — Thu, 01 Apr 2021 13:14:46 GMT

^ Like @Anonymous , I'm a "not all eggs in one basket" type of card holder.
I like the cards I have and got each one intentionally (even if it didn't always work out in the end).

My CU CCs are just as good as my "big bank" CCs.

For actual banking? CUs all the way - they are a lot better to work with, especially when rebuilding, and I think that the relationship I have with my CU lenders helps with getting higher starting limits on the CU CCs, but that doesn't influence me a ton.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Horseshoez — Thu, 01 Apr 2021 13:32:08 GMT

@designated_knitter, this is kind of a bittersweet question for me; prior to our financial meltdown, I was rockin' the AMEX Platinum, which was exceedingly handy because when I travel it gave me access to many of the "Sky Clubs" in airports (in my mind, that benefit was worth the steep annual fee alone). Given the odds of me having an AMEX of any color ever again is pretty slim (they got burned for something north of $25,000 in my Chapter 13), my go-forward plan is to use cards which benefit me in other areas, particularly when it comes to rewards. Given not all rewards cards are created equal, my CapOne Quicksilver (1.5% on all purchases) gets pretty much all of my "normal spend", my TDCash card gets all of my "eating out spend" so I collect 3% there, and my PenFed card gets my Gas and Grocery spend (2.55% and 4.25% respectively).

Once COVID is in the rearview mirror, it looks like I'll start traveling again, so a travel card of some stripe might come in handy as well. I can probably get the CapOne Venture, but would prefer something like one of the "Priority Pass" cards, maybe the Citi Prestige given both AMEX Platinum and Chase Sapphire Reserve are both classed as "unobtainium" for me these days.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

FlaDude — Thu, 01 Apr 2021 13:31:09 GMT

@Anonymous wrote:
And while some find CUs more generous, others don't, or at least find the banks as least as generous

It certainly varies by CU. I've been with the same CU for 40 years, they are a very conservative lender. I've had denials from them when the big banks had no problem issuing cards or making loans.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

JNA1 — Thu, 01 Apr 2021 13:56:13 GMT

Echoing others, I choose the card based on its own merit first and foremost, and the issuing bank is secondary is secondary in that decision. That said, if I'm down to a close decision between 2 cards the bank/CU can (and has been the tie breaker). Some FI's work well for some and not so well for others.

For instance, when I was in the market for a flat 2% card, I chose the PPMC over the Citi DC and several other CU's because of my prior experience with Sync. That was early in my card journey, and I felt like I would be approved based on my history with them and felt like it would grow quickly, also based on my first Sync card. I ended being correct on both counts - I was able to nearly triple the CL in a year.
As I'm sure you know though - Sync has a black eye for a LOT folks these days, if given that choice again today, I'd probably go a different route.

We only have 4 CU CCs through 2 CUs (NFCU and AOD) but every other loan I have is through CUs, and most likely will continue to be from now on.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Slabenstein — Thu, 01 Apr 2021 15:31:12 GMT

When it comes to credit cards, for me it's just a question of rewards, terms, and issuer quirks, so I don't have an inherent preference one way or the other. Rewards comparison does rule out almost all smaller CUs since, with the exception of unicorns like AOD, their cards are mostly going to have pretty lackluster rewards. Some ofc offer Elan cards, which have a couple of decent options, but that's really a card w/ a major bank, anyway. Local CUs can still be a good place to look for a lower-rate card, but in my own case I haven't had a need to add another one. For the larger CUs that do offer competitive rewards cards, I don't happen to have any, but that's just b/c the card that worked best for what I wanted at the time I did my app research happened to be a big bank rewards card. If the math had come out in favor of the Navy More over the BCP, I would have gone with that one for groceries, instead, and that it didn't is probably more a matter of my own spend than one card or type of issuer being inherently superior to the other. I do prefer credit unions to banks generally, and would prefer that any money an issuer makes off me go back to CU members than into shareholder pockets, but so far that preference hasn't been enough to tip the scales towards a CU card for me.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Heatt99 — Thu, 01 Apr 2021 16:03:15 GMT

I prefer Navy & Penfed for CU; Amex & Discover for Banks.

Most accounts I have are with banks, yet they tend to keep a tighter leash on my accounts. They are more likely to balance chase, close accounts for odd reasons, and charge very high APR's. Yet, they have more Assets by volume, so they can afford to have perks or colaborate with others to entice me to use their card. Some cards are easy to obtain, while others ask for your lower left rib.

CUs on hand will grants cards, and most will do so with a low credit score. They wont balance chase, just ask that you pay on your account. some will give out starting limits of 5k or higher just knowing that you have Direct Deposit. I see most CU have 18% max interest rate. Then it's sometimes about getting the card, so one can apply for other products at low rates.

To compare and contrast is all about a persons needs, wants, and spend. Travel a lot go ahead and apply for that $450 annual fee; eat out a lot apply for the $95 or $0 fee card.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

summerterrace — Thu, 01 Apr 2021 16:21:49 GMT

I prefer whichever card meets my needs, has a useful bonus (not a churner), has an easy to use rewards system, and is a bank that I want to give my business to.

Ironically the majority of my banking business is at credit unions, but my credit cards are all with banks.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

fatcomic — Thu, 01 Apr 2021 16:17:14 GMT

My favorite card for some reason is my Chase CSP, although I'm not sure why because their 1x and 2x rewards is pretty lacking especially compared to the Freedom cards, but maybe it's something subliminal about the shade of blue the card is. Maybe it's because they gave me a generous limit when I wasn't expecting it. As my only annual fee card, maybe I secretly enjoy paying an AF, who knows.

However, for the most part I prefer credit unions for most other things from checking and savings accounts, auto loans, lines of credit and low-rate credit cards. I have the AOD Visa and NFCU platinum and another low interest no-thrills high limit Visa from our primary CU that we use. With the exception of the AOD Visa, PenFed PCR and NFCU Flagship (I do not have the Flagship or PCR) most of the credit unions cards are not going to wow you with rewards or cash-back.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

K-in-Boston — Thu, 01 Apr 2021 16:22:08 GMT

For me it's totally about what I want out of a card. For travel rewards and perks, it's hard to beat offerings from Amex, Chase and Citi with their flexible use cards and cobranded cards. They dominate that market for good reason. For balance transfers and no-frills low APR cards, credit unions are almost always tops.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Anonymous — Thu, 01 Apr 2021 16:39:55 GMT

@summerterrace wrote:
I think that the big banks pay you tubers and websites and influencers big dollars to promote their cards. This influence is powerful and steers some people to cards that don't meet their needs as well.

On youtube specifically, the ones that I am aware of tend to be focussed on those already interested in credit cards, so presumably not seen by the average person. But I guess I wouldn't be surprised if more mainstream influences also drop in credit card recommendations (as totally unbiased as all other product recommendations!)

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

coldfusion — Thu, 01 Apr 2021 16:43:49 GMT

When it comes to the choice of card, it's basically all about you. You may occasionally get a comment on a personal level when the merchant recognizes the card "hey I have this card too" but generally all they care about is seeing the "Approved" message come up when the card is run. They aren't going to bow and scrape before you because you flash an AMEX Centurion.

Since it's all about you, you get to pick what's important. Some people feel better about themselves because they hold a Chase/Citi/BoA/AMEX card, others legitimately couldn't care less, and there is nothing wrong with either viewpoint. By the same token, in many cases a CU card may just be a functional better fit.

A large bank tends to provide a more polished experience than even a large credit union, although "polished" doesn't necessary equate to "better".

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

M_Smart007 — Thu, 01 Apr 2021 17:38:33 GMT

Well, pretty much everything has been covered in the thread so far.

I will chime in just to say .."It pays to be diversified" ...

CU's been pretty generous to Me, but Chase and Amex have also.

IMHO, I feel that CU's are least likely to take "AA" on you in a down turn.

Having said that, no banks/lenders have taken "AA" on Me, except "SYNC"

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Kforce — Thu, 01 Apr 2021 18:40:20 GMT

For me it's totally about what I want out of a card.

Have had great cards from both Banks and CU's

One is not hands down superior to the other

The good about big banks is not needing the savings, checking, debit card, membership, relationship stuff. A simple path, you just apply.

CU's often make up for the hassle of membership with other perks. like HYS on first $ dollars, etc.

My current most used are CU, but looking at history I have had some nice bank cards

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

SouthJamaica — Thu, 01 Apr 2021 19:12:50 GMT

@designated_knitter wrote:
So lots of people seem to go after the Big Boys (Citi, Chase, Amex etc). Others would fall on their proverbial swords for CUs such as Navy, Penfed, Etc.

Is ther an advantage of one vs the other or is it the ooh-ahh factor?

Truly curious if the Big Banks have an advantage over the larger CUs.

thanks in advance.

1. I have no "ooh-ahh" factor at all

2. For rewards cards, I generally go to the big banks.

3. For cash advance and balance transfer cards, I generally go to the credit unions.

In my experience, the big banks' rewards cards should never be used for carrying a balance or for cash advances, and should rarely be used for balance transfers due to their high balance transfer fees.

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

Anonymous — Thu, 01 Apr 2021 20:14:20 GMT

I prefer CU cards because the terms and conditions are more consumer friendly. For example, I'm in the Frank Abagnale camp and don't have a debit card. (When fraud occurs, I don't want MY money at risk while the financial institution sorts it out. I'd much rather use a credit card and have THEIR money at risk.)

If I need cash and the branch is closed I do a cash advance on my Navy Federal card. I hop on the app and do a transfer from checking to the card. Navy applies the payment to the highest rate balance (cash advance) first and then works their way down the list. There's a $0.50 VISA ATM fee, plus 1 day of intrerest so it costs me $0.64 to get $400. I'm good with that. I'll pay $0.64 once or twice a year for the risk avoidance of not having a debit card.

By contrast with a big bank, there would be a 3% / $10 fee and payments go to the lowest rate balances first and the rates are higher. So I'd pay closer to $11 in fees, not to mention the interest rate isn't as favorable.

I feel obligated to issue the disclaimer my approach isn't right for everyone and unless you have friendly CU policy like I decribed, cash advances are generally a very, very expensive option (mistake?).

Re: “Big Dogs” vs CU credit cards: Which do you prefer and why?

JNA1 — Thu, 01 Apr 2021 20:51:44 GMT

@Anonymous wrote:
I prefer CU cards because the terms and conditions are more consumer friendly. For example, I'm in the Frank Abagnale camp and don't have a debit card. (When fraud occurs, I don't want MY money at risk while the financial institution sorts it out. I'd much rather use a credit card and have THEIR money at risk.)

If I need cash and the branch is closed I do a cash advance on my Navy Federal card. I hop on the app and do a transfer from checking to the card. Navy applies the payment to the highest rate balance (cash advance) first and then works their way down the list. There's a $0.50 VISA ATM fee, plus 1 day of intrerest so it costs me $0.64 to get $400. I'm good with that. I'll pay $0.64 once or twice a year for the risk avoidance of not having a debit card.

By contrast with a big bank, there would be a 3% / $10 fee and payments go to the lowest rate balances first and the rates are higher. So I'd pay closer to $11 in fees, not to mention the interest rate isn't as favorable.

I feel obligated to issue the disclaimer my approach isn't right for everyone and unless you have friendly CU policy like I decribed, cash advances are generally a very, very expensive option (mistake?).

I do still have debit cards, but I don't use or carry them. I recently got a letter from my primary bank warning me that they were going to shut down my debit card because of non-use. I didn't even know that was a thing! 😂