Credit Union Question

[Anonymous]

Do you need to be a member to get their Credit Cards?  I hear everyone rave about CUs.  What is so great about them?

[jorin]

In my experience, Yes, you need to be a member first.  This usually involves opening a Savings Account with an initial deposit amount  (ie..  PenFed requires a $5 initial deposit).  Many Credit Unions now allow you to set-up the account online; they will mail you the required paperwork they'll need you to sign.

The benefit of Credit Unions is that they almost always offer superior Credit Limits on their credit cards. 

[Anonymous]

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@Anonymous wrote:
Do you need to be a member to get their Credit Cards?  I hear everyone rave about CUs.  What is so great about them?

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Some credit unions will allow you to be approved for credit card prior to membership (i.e. UFCU).

Benefits of CUs include:

No Balance Transfer Fee

Same interest rate on cash advance as purchases (2-3% transaction fee)

Less probability of AA

Depending on credit score, great interest rates and CLs

[Anonymous]

I work for a credit union and yes they are great. Some benefits include - no fee checking accounts/savings account - no balance transfer fees and so on. Credit unions are not for profit and thus there is no pressure of reporting to stakeholders like banks have to and thus you as a member are an owner. You typically get loans(all kinds of loans) at a lower rate and highest rates on ur deposit products. Yes, you have to be a member of a credit union in order to get any other products - typically a savings account will get u started with membership. Even if you apply for a cc without membership, prior to the CC being established, you will need to open your membership and sometimes membership is limited to some organizations etc.

[haulingthescoreup]

The mindset of CU's is completely different from that of banks. Banks are supposed to make money for their shareholders, those who've bought their stock. Credit unions exist to help fellow members, while still protecting everyone's investments. Once you join a CU, you're part of that group.