Compare Union Credit Card with Bank Credit Card
With the many types of credit facility available today, people are spoilt with choices on the credit card they wish to carry in their pockets. While some prefer a more affordable alternative, as in lower interest rates, others demand better services that come along with credit cards. Many want to compare union credit cards with bank credit cards on these factors before committing to one or more credit cards. Hence, the competition for credit cards is very high today.
Increasing usage of Union Credit Cards
There is a growing number of Australians, as high as 25%, who are members of a credit union. Credit unions are specific groups of people who come together on one common objective: putting their money in a common pool for the benefit of every member of the union group. Hence, today, credit unions have emerged as a growing popular option on financial assistance and benefits compared to the banks. These unions are now offering their own credit cards which function like the common bank credit card. Compare union credit cards with bank credit cards will find the latter’s interest charge being lower. As the unions are not profit orientated, they can afford to offer lower interest charges on the outstanding credit amount incurred by their members.
As there are more and more consumers who want better services, you will need to compare union credit cards services to that offered by the banks. The reason could be that the unions view the consumers as members and not as customers, which is often the view taken by the banks. Hence, the unions give a higher personalized service than bankers when you compare union credit card services to bank card services.
Drawbacks of Union credit cards
The services offered by banks when you compare union credit card services seem similar in terms of deposits and withdrawals facilities besides credit facility. Hence, credit unions have other charges such as membership fees. These may come on an annual basis or once in a lifetime basis. These membership fees are used to cover the union’s operating costs.
As these credit unions are not large establishments, they are usually located in the big cities or perhaps one per region, which may be an inconvenience to those who travel interstate.
Some credit unions practice cross collateralization, which is the practice of linking up your union credit card with a credit loan from the union. For example, if you take out a loan from the union to purchase a car, the car is deemed to belong to the union until the loan is paid off. If you default in your monthly pre-payment, or for some reason become bankrupt, then the car will be repossessed to be auctioned for clearing any outstanding debt on your credit card. Banks do not operate this way.
If you compare union credit cards to bank cards facility carefully, you will find that you are required to undergo some sessions in finance management if your application is declined.
Before you apply for any union credit card, you should compare union credit card with a bank credit card on their terms and conditions first. Some like the personalized service of unions while others prefer to keep their distance with their credit providers.
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