Do Credit Unions Have Credit Cards? How to Apply

Credit unions offer a variety of credit cards. While not always as widely advertised as those from larger banks, credit union credit cards are available to eligible individuals. These financial cooperatives provide competitive options for managing credit.

Credit Union Credit Card Offerings

Credit unions offer a diverse range of credit card products, similar to those found at traditional banks. These include rewards cards, low-interest cards, and secured cards that help individuals build or rebuild their credit history. Many also offer student cards or cards tailored for specific member groups.

The characteristics of these cards, such as interest rates and fees, vary by individual credit union. Annual percentage rates (APRs) on credit union credit cards can range depending on creditworthiness and card type. Common fees include annual fees, foreign transaction fees, and late payment fees. Many credit union cards are known for having fewer or lower fees, including no annual fees or foreign transaction fees. Reward structures often involve earning cash back or points on all purchases, or higher percentages in specific spending categories.

Key Distinctions of Credit Union Credit Cards

A key distinction of credit union credit cards is the prerequisite of membership. To qualify for a credit card, an individual must first become a member of the specific credit union. Membership eligibility depends on criteria such as where one lives, works, worships, or attends school. Affiliation with certain employers, associations, or family ties to an existing member can also grant eligibility.

Credit unions operate as not-for-profit, member-owned financial cooperatives, which influences their approach to rates and fees. This structure allows them to offer lower interest rates on loans and credit cards, along with fewer or reduced fees, compared to traditional banks that aim to generate profits for shareholders. This benefit stems from their ability to reinvest earnings back into member services and better financial products.

Credit unions also provide personalized customer service and a community-focused approach. Their underwriting processes for credit products might be more flexible, potentially offering options to individuals who might face stricter criteria at larger banks. While their geographic footprint or digital presence can sometimes be smaller than that of large national banks, many credit unions participate in shared branching networks, allowing members to conduct transactions at other participating credit unions nationwide.

Applying for a Credit Union Credit Card

The first step in applying for a credit union credit card is to establish membership with the institution. This involves opening a “share savings account,” which signifies one’s ownership share in the cooperative. This account often requires a minimum deposit, commonly as low as $5 or $10, which must be maintained to keep the membership active. Once membership is established, individuals gain access to the credit union’s full range of products and services, including credit cards.

The application process for a credit card can be completed online, in person at a branch, or by phone. Applicants need to provide personal identification, such as a government-issued ID or driver’s license, and proof of address. Income verification, often through recent pay stubs or tax returns for self-employed individuals, and a Social Security Number are standard requirements for identity verification and credit checks.

After submitting the application, the credit union reviews the information and conducts a credit check. The decision timeline can vary, with some approvals being instant, while others may take several business days. Upon approval, the credit card is issued and mailed to the applicant, ready for activation upon receipt.