Credit Union Credit Cards

Find out why it could be a good idea to take a credit union credit card over a bank credit card. Understand the pros and cons of credit union credit cards.

To understand whether a credit union credit cards may be a preferable option to regular bank credit card, you need to know how they differ. As with all things in life, there are advantages and disadvantages. Weighing up your own situation and current and future requirements will help you arrive at an answer.

The main difference between a credit union and a bank, that naturally affects how their credit cards work, is that a credit union is owned by its members and it does not exist to make a profit, although it must remain solvent as any other financial institution. Instead, its main aim is to provide a good service to its members. For anyone who has had a negative experience with a bank, this alone may be a deciding factor.

Credit Unions Credit Card Comparison

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Qantas Staff Credit Union Visa Platinum	A high direct earning Qantas Frequent Flyer Credit Card from Qantas Staff CU.	4.99% for 5 months (reverts to 19.99% )	4.99% for 5 months	$195	19.99%

Table of Contents: Guide to Credit Union Credit Cards

• Why choose a credit union credit card?
• Drawbacks of a credit union credit card:
• Why Should You Take Action?
• What Exactly Are Credit Unions And Building Societies?
• Who Supervises Them?
• The Help Provided To The Community
• Partnerships Programs For Community Support
• Fragments Of History
• Credit Unions And Building Societies versus Banks
• Safety And Security Issues
• Owning The Organisation
• Saving Money
• More About The Products Offered
• Why Are Banks Not Recommended?
• Are Such Companies Safe?

Why choose a credit union credit card?

You are a member not a customer - According to a 2007 Consumer Reports survey, credit union credit cards presented the fewest hassles to their users, compared to bank credit cards, and the survey also praised the customer services offered by credit unions. Credit union credit cards can also boast some of the lowest interest rates, and their fees and charges can be less than half those charged by a bank.

A more personal application - Applications for a credit union credit card are treated more on an individual basis than by the banks. If a bank turns down your application for a credit card, you cannot really take the matter further. Credit unions allow for your case to be reviewed by the union's committee.

A kinder response when times are hard - Credit unions offer advice and help if your finances start to suffer and you experience difficulties. If you own a credit union credit card, the credit union will be more amenable to reducing your interest rate or changing certain other terms of your repayments.

Drawbacks of a credit union credit card:

Cross-collateralisation (some credit unions only) - This refers to the practice of tying in any credit union loan with your credit union credit card. This means if you take a loan with your credit union to buy a car, that car is considered collateral if you default on your credit card debt or become bankrupt. Potentially, you could have your car repossessed to pay off your credit card debt. Banks do not secure credit card debt in this way.

Forced financial education - One of the prices you may have to pay if your credit union credit card application goes to review is that you may have to undergo a few lessons in managing your finances. Of course, many people will see this as a benefit rather than a drawback.

Overall, to know if a credit union credit card is right for you, you will need to check out not just the terms and conditions of the credit card but the whole ethos and approach of the credit union in question. Some people may enjoy the way credit unions work, others may prefer to keep their credit card provider at more of a distance.

Why Should You Take Action?

First of all, you will benefit from some personalised rates and pricing for every product you apply for simply by becoming a member of a group like this on. However, it is very important to choose the credit union or the building society that is the most suitable for you by doing a comparison of the advantages provided to you.

Credit unions and building societies have already become very popular all over the country, with more than 4.5 million people already being members. If you want to join them, then you should have a little chat with one of the members in order to see how this will advantage you.

What Exactly Are Credit Unions And Building Societies?

Both of the institutions deal with taking deposits and function under some very strict regulations imposed for the financial sector of their activity, their work being completely authorised. In order to help the majority of their members, each credit union and building society will always come up with a customised scheme for pricing, offering a great number of banking services. Some of the popular ones are alternative to saving accounts products and home loans currently available on the market.

However, if you are member you could also choose to apply for a credit or debit card with some special features and fees and you will surely enjoy it and want to take full advantage of the situation.

Who Supervises Them?

Every single institution like this one is subject to the close supervision by national authorities and function under the same rules as every bank. For this reason, every deposit will be completely guaranteed by the Federal Government, provided that its value does not exceed $1 million.

Apart from the license which is absolutely mandatory for every credit union or building society, a AFSL is also required (Financial Services License). For all these reasons, you can always be sure that your funds will be deposited safely and you will not have any reason for worrying about your account if you decide to become a member.

The Help Provided To The Community

Currently, the finance system in Australia is regarded as one of the most successful one which is owned by members in the entire world. And this is partially because of the existence of building societies and credit unions, which have successfully managed to set the customers dealing with some very important financial problems right on track and enable them to become part of their local communities again, mainly be providing them with some financial products that were fully compatible with their needs.

And the number of examples when it comes to partnerships between the communities spread all over the country and such institutions is a very big one, with all of them demonstrating a great spirit of engagement in the community and support for every single member, provide by the leaders of the organisations. Some of the most popular ones are the NILS systems (No Interest Loan Schemes) and loans that come with a very low interest applied to the accounts of the members. In this way, every single person that decides to become part of a building society or a credit union will be able to achieve certain financial goals in the shortest time possible, with a very small effort.

Partnerships Programs For Community Support

One of the most important programs that almost every financial institution like this one has included in its activity is the special grants which are designed to provide disadvantaged families with the necessary support, not only in terms of finances but also psychologically.

Next, another opportunity you should know about is related to the credit union providing a great number of job opportunities for indigenous staff and operating in some very important communities that include people who encounter some serious financial difficulties. These people are most often delighted by this important help provided to them and are able to improve their financial situation eventually.

And this is not all, because there are also a great number of loan programs that come with advantageous interest rates for all of the members. In addition to these, the most financially disadvantaged persons will also have the opportunity to apply for programs that come with absolutely no interest. This is another important way of helping the population achieve their financial goals in the future and if you decide to become a member you will most definitely enjoy these aspects.

Finally, you will also have the chance to be part of environmental programs or one of the numerous sponsorship deals organised by the community. Considering all these amazing opportunities, there is no reason for not trying to apply for membership at a credit union or a building society.

Fragments Of History

Most of the financial institutions that operate in this way are proud of their great history which brought them popularity among a great number of members of the Australian community. The primary purpose of forming them over a hundred years ago was to offer support to Australians who really require it and apparently they have managed to keep this tradition alive, because nowadays even more people are financially sustained by the opportunities provided to them by the leaders of credit unions or building societies.

These days, more and more people are granted membership of such an institution because the level of accessibility has seen constant increases over the last years. In the following lines you will be presented with some very useful information about how everything started.

First of all, the first building societies were established in the Australian territory back in 1850, because there were more and more people struggling with financial difficulties and being unable to properly handle their funds. Twenty years after, Tasmania was the place for the creation of what is the oldest surviving building society in the entire country. Nowadays, it is known under the name of Launceston Equitable Building and Investment Society. This very popular institution was created by a couple of citizens who really felt like the society needed a housing finance system.

Between 1875 and 1880, the most important event related to the history of credit unions and building societies was the apparition of the first permanent institutions in Queensland and the New South Wales area.

On the other hand, credit unions are a newer concept and were introduced in Australia only in 1946. The person responsible for this was Kevin Yates, who had a great contribution for the apparition of the first credit union ever created in this area, in October. And apparently this event enjoyed great success, because only five years later, an impressive number of 50 credit unions were registered as functioning financial institutions.

The next important event took place in the 1960s, when the first payroll deductions were processed by credit unions and building societies. Furthermore, back in 1969, a royal assent was granted to the first credit union act every created in Australia. This event took place in the New South Wales area and was greatly appreciated by all the members of such financial institutions.

1970 was the year when the number of such societies in Australia reached an impressive number of 178. As a consequence, there was the need of a council that would be able to provide support for the international movement. The first such council was known under the name of World Council of Credit Unions and was formed in 1971.

During the same year, there was an extremely important development of the activity of such institutions in other continents as well, with the most important players being the south eastern part of Asia and the South Pacific, which encountered support from a great number of local communities in Australia. Finally, in 1977 the first 24 hour ATM was installed in an Australian outlet. This enjoyed great popularity among everyone and it was treated as another sign of appreciation of the members of such community.

A few years after, in 1981, there was the first EFTPOS facility operated by an Australian credit union, while in 1983 one of the most impressive ATM networks in this area was established, provided members of the credit unions with full access to their founds in every context.

The world’s first international cash withdrawal with the use of a plastic card took place in 1977 under the supervision of a NSW credit union. This was a very important event and showed great influence about the way banking works nowadays.

The recent history began in 1995, with the establishment of the program known under the name of CreditCare, which was really helpful with respect to the bank closures in Australia, mainly because of the opening of numerous face to face services all over the country. Because of this, in 1999 the building societies and credit unions functioning in Australia were granted with the same regulatory status as banks, working under the same law.

Finally, in 2006, a new industry association was formed by the CUIA (Credit Union Industry Association) and the AAPBS (Australian Association of Permanent Building Societies). This also showed great influence on the way the banking system works and was regarded as a useful addition to the already existing building societies and credit unions.

Credit Unions And Building Societies versus Banks

From the very beginning, you should know that there are a great number of reasons for choosing a credit union or a building society over a bank when it comes to the different banking services provided to you. In fact, before you decide upon the perfect solution for you, you should ask yourself if there are some reasons for not becoming a member of such a financial institution.

The most popular reason is undoubtedly the fact that they are mutuals. This means that their main focus is on the actual members and on improving their financial condition as much as possible by providing them with some very useful products, rather than on making some serious profit. Therefore, you should always consider this aspect before hurrying to apply for what a bank has to offer to you, because most of them will only intend to make some profit by having you as a customer.

Because of the fact that building societies and credit unions have no pressure for making more and more profit in order to be able to pay the shareholders, the money made by such financial institutions is invested into providing customers with better rates and fees that are more and more impressive. In this way, you can always be sure that if you decide to become a member, you will have a great number of advantages which you will always enjoy using, combined with excellent quality for the services provided.

Moreover, there will be some personalised products designed by building societies and credit unions for the members, simply because they put all their confidence in them and treat them as valuable customers. After all, without its members, a financial institution like this one would not exist at all, and their leaders completely know that.

Safety And Security Issues

There are even more reasons for deciding to apply for membership at such a financial institution instead of choosing banks as the main providers for the financial products you own. First of all, in terms of regulations there is no difference between these types of institutions and because of this exactly the same rules will need to be met.

On the other hand, in terms of security you will most definitely be more advantaged if you chose to become a member of a credit union or a building society instead of choosing a bank. First of all, one of the most important things you should be aware of is the fact that there is no direct exposure to the sub-prime loans that are distributed in the United States.

Therefore, having the lowest arrears level will be completely possible and will definitely contribute to obtaining the leadership in the Australian financial market. Furthermore, the base for all the funds is a very solid one, providing you with the level of security you have always dreamed of. This base is in most of the situations drawn from the deposits of the members and therefore, there will be less exposure to wholesale markets and the disadvantages that this kind of situation might bring with it.

Owning The Organisation

The fact that customers are the true owners of building societies and credit unions is a concept that has always existed in the policy of such financial institutions. Therefore, the main focus is on the actual customers and because of the fact that they are mutuals, there is no pressure when it comes to having to get the shareholders’ returns at a maximum level. As a consequence, you can be sure that your interests will always be put first and you will benefit from the necessary level of respect.

Saving Money

Many people are not aware of the fact that if you become a member of such an institution, you will also have the opportunity to save some serious money in the long run and use it for achieving some possible financial goals you might want to set for the near future.

One of the most important reasons for this statement is represented by the rates and fees which will be applied to you. Most of them are really competitive and therefore, you will never encounter problems when it comes to keeping up with the repayments and other similar issues. Furthermore, according to recent surveys, credit unions and building societies charge the lowest loan fees in the entire market.

Accessibility

Next, another important reason is the easy access provided to you if you choose to become a member. Because of this, you will never have to worry about not being able to have full access to your funds and the extra features included into your account, mainly because of the great number of locations where you can seek useful face to face banking services. The current number of such places has currently reached a value over 1,800.

In addition to this very important aspect, you should also know that the ATM network owned by building societies and credit unions is one of the best ones all over the country, with the number of such machines reaching over 3,100 in Australia.

For all these reasons, you can be sure that after you choose to become a member of a financial institution like this one access to your funds and the services and features incorporated into your account will no longer be a problem for you and every time you encounter difficulties, representatives of the credit union of building society you collaborate with will always be there to provide you with the necessary help you require.

Quality Customer Service

In terms of the quality for the wide range of services provided, most of the surveys conducted in this matter pointed out that the satisfaction of the customers was the highest for credit unions and building societies.  As a concrete example, the latest Customer Satisfaction Survey conducted by Roy Morgan Research indicated a record in terms of the satisfaction of the customers. While the credit unions scored 87% and the building societies the amazing value of 88.4% level of satisfaction, the most important four banks in Australia apparently have customers that are only 73.9% satisfied with the quality of the services provided to them.

Community Commitment

Because the main focus of credit unions and building societies is on people and their financial needs, the social responsibility could not miss from this equation. As a consequence, the principle according to which a financial institution should always give back to the community is fully applied by these two types of financial institutions and you will most definitely enjoy this aspect if you decide to become a member eventually.

Furthermore, environmental sustainability and financial literacy are two of the other important aspects why you should opt for the services offered instead of applying with a bank. And finally, because of the ownership is shared between the members of such institutions, each of them is part of the community they work for. Because of this, the pricing level is calculated so as they are affordable for everyone.

Lending Money With Responsibility

Another important aspect you should take into consideration before deciding on the best financial product for you is that credit unions and building societies will always show responsibility when it comes to lending you money. Ethical banking is the perfect term for describing their activity, since representatives of such financial institutions will always make sure that members can afford to pay back for everything they borrow.

Moreover, a great number of members struggling with financial difficulties are already part of the programs ran by mutuals and benefit from a wide range of support services which help them achieve a better financial situation. However, they will only have the possibility to borrow money in a responsible way, so that everyone is advantaged by this process.

More About The Products Offered

When it comes to the actual products you will be able to apply for after becoming a member of a credit union or a building society. First of all, you will have the opportunity to choose between a fixed and a variable rate for your account, depending on what you choose for your use. For example, if you want to choose great flexibility and benefit from an amazing functionality of your loan at the same time, the recommendation is to save as much as possible. And with a credit union or building society you will be able to save up to $30,000 for every single loan you apply for.

On the other hand, a bank will never be able to provide you with such an advantage, regardless of its position in the financial institutions ranking, because the main focus will always be on making some serious profit instead of concentrating on the actual financial needs of the members.

At first, you will be able to choose for a savings account or for a transaction one. When you reach this point, you should know that all of them come with access to an impressive network of ATMs all over the country, numbering thousands of machines.

In addition to this, there will be some very competitive products that include term deposits, which you will always enjoy using, mainly because of the greatly accessible rates and fees, which are completely affordable for every member. Not to mention about the great number of loans, both secured and unsecured, also made available to members of credit unions and building societies.

whenHowever, you should be really careful when applying for a secured car loan, for example, because in this situation the vehicle will be used as security for the financial services you are provided with and whenever you fail to keep up with the payments or with the terms and conditions printed on your contract you might end up having your car seized.

Finally, other important financial products you might benefit from after registering for a credit union or a building society are the schemes that include credit and debit card usage. What is really impressive about this last category of programs is that you will have full access to insurance and help for planning your finances. In this way, you will never have to worry again about having your baggage stolen or being the victim of an accident whenever you travel overseas.

Last but not least, if you are the owner of a business, you will be glad to know that there are also several business banking products made available by mutual institutions. Moreover, each financial institution comes with a customised rate for the financial products. For even more information, you should never hesitate to contact some of the representatives of the financial institution you choose to collaborate with, because most of the personnel will always be delighted to help you out, regardless of the doubts you might have or any other question.

Why Are Banks Not Recommended?

First of all, before signing for a financial product offered by a bank, you should know that the main focus of such financial institutions is on maximising the profit, because of the fact that there is a certain level of pressure on them since eventually shareholders will need to be paid. On the other hand, with credit unions or building societies the main focus will always be on the members and all the extra money will be invested back in several attempts of providing you with even more competitive rates and advantages, so that you will be able to get the best out of your financial experience, regardless of the current situation of your finances.

Furthermore, the overall quality of the services provided is way better when it comes to mutuals, mainly because of the faster time it takes for the delivery process and the fees, which are often the most competitive you will ever find available on the market. This is because each mutual will always set its very own scheme for setting the fees for the members and therefore, in most of the cases they will be calculated so that every member will afford to pay back for every single dollar borrowed.

Are Such Companies Safe?

This is probable one of the most common questions one may ask before deciding which financial institution to choose for the services provided to him. Therefore, you will be happy to know that credit unions and building societies are among the safest institutions, for a great number of reasons. First of all, they function under the same regulations as banks, so that there will always be some strict steps they need to follow, as well as certain licenses which are absolutely mandatory before a possible financial activity can begin. Therefore, you can make sure that your funds are always deposited in a very safe place and you will no longer need to worry about possible fraudulent transactions, because in most of the cases you will be provided with a full discount for the product you apply.

Saving Money

Finally, always remember that with credit unions and building societies you will always be provided with the chance of saving some serious money in the long run, regardless of the financial product you apply for. For example, with a home loan recent statistics indicated that a regular member of such a financial institution will save up to $30,000.

All in all, if you just decided to sign with a bank, maybe you should think twice and consider this alternative as well, because in most of the situations you will never regret such a chance, mainly because of the higher quality of every single banking service provided to you.

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%