Credit union credit cards can offer lower interest rates and unique benefits compared to cards from larger banks. Many of them still include rewards cards, and if you’re in the stages of building credit you can find some decent secured cards. We’ve compiled a list of the credit union cards that have a balanced mix of low interest savings, perks and accessibility.
Top credit union credit cards
-
Navy Federal More Rewards American Express® Card* is an excellent choice for everyday spending. It offers an impressive selection of categories and earns an unlimited 3X points. You can also get a solid welcome offer, a one-time credit for a Walmart+ membership, minimal fees and a low APR.
However, access to the Navy Federal Credit Union is limited to current and retired members of the armed forces and Department of Defense employees, along with their family and household members.
-
Pros
- This card earns excellent rates for purchases in many everyday spending categories.
- The welcome offer, lack of fees and low APR provide solid initial and ongoing value.
Cons
- The card has a high barrier to entry compared to other credit union cards.
- Even though it’s an American Express card, you can’t pool points with your existing Membership Rewards account.
-
If you need to consolidate debt, the USAA® Rewards™ American Express® Card is a solid choice as it offers a lengthy intro APR period on balance transfers, with a potentially low ongoing APR. You’ll also get decent reward rates in several everyday categories and travel protections and perks that match those on premium cards.
USAA membership is limited to active and former service members and their families. You may also qualify if your parents or grandparents were members.
-
Pros
- USAA has flexible rewards redemption options.
- The card offers solid ongoing reward rates in useful categories.
Cons
- The barrier to entry can make getting this card difficult.
- The intro APR doesn’t apply to new purchases.
-
PenFed Pathfinder® Rewards Visa Signature® Card* is among the most accessible credit union credit cards, and it’s a decent travel card. You’ll earn 3X points on travel and 1.5X points on all other purchases, all for an easy-to-offset $95 annual fee. And if you’re an existing PenFed Honors Advantage member, the annual fee is waived and you’ll earn 4X on travel. You’ll also get a sizeable sign-up bonus, Priority Pass lounge access and a statement credit for Global Entry or TSA PreCheck®.
You can apply for PenFed membership by applying for a savings account and depositing a minimum of $5, offering a much lower barrier to entry than many credit unions.
-
Pros
- The annual fee can easily be offset if you use the annual travel credit.
- PenFed is accessible to anyone for as little as $5.
Cons
- Reward points may have lower than one-cent-per-point value depending on your redemption choice.
- Your earned points expire unless you use them within five years.
-
The Bellco Blue Diamond Visa is ideal if you’re looking for a straightforward cash back credit union card. It earns 2 percent cash back on all purchases, a rate that matches many of the competing top flat-rate cash back cards available. You’ll also get a solid welcome offer for a no-annual-fee card, a decent intro APR on balance transfers, and a potentially low interest rate.
Joining Bellco Credit Union is fairly easy. If you don’t qualify based on your location, employer or family, you can join the Bellco Foundation nonprofit organization to gain eligibility for membership.
-
Pros
- The flat cash back rate is among the best on the market.
- There’s a low barrier to entry with this card.
Cons
- The card charges a small foreign transaction fee, so it’s not ideal for traveling abroad.
- There’s a minimum rewards redemption amount of $25.
-
The DCU Visa® Platinum Secured Credit Card* is a solid credit-building option if you have bad credit and can’t access unsecured credit cards. It offers a fairly low variable APR and minimal fees. However, it requires a minimum deposit of $500, which can be higher than other secured cards.
You can join the Digital Federal Credit Union if you or a family member works for an eligible employer, lives, works, worships or attends school in an eligible community or is a member of a participating organization.
-
Pros
- The APR is one of the lowest available for cards with bad credit.
- There are no barriers to membership with the credit union.
Cons
- The minimum security deposit may be too high for some people.
- You won’t earn any rewards with this card, meaning you’ll want to upgrade to a better card once you’ve built your credit.
Comparing the best credit union credit cards
Credit union cards tend to offer some of the lowest interest rates around. Here’s a few of the top performers.
|
Card Name |
Best for |
Highlights |
APR |
Bankrate Score |
|---|---|---|---|---|
|
Navy Federal More Rewards American Express® Card* |
Everyday spending |
|
14.90% – 18.00% Variable APR |
4.3 |
|
USAA® Rewards™ American Express® Card* |
Intro APR |
|
10.65% to 26.65% Variable |
2.9 |
|
PenFed Pathfinder® Rewards Visa Signature® Card* |
Travel rewards |
|
17.99% Variable |
N/A |
|
Bellco Blue Diamond Visa Signature® Credit Card |
Flat-rate rewards |
|
15.75% – 21% |
N/A |
|
DCU Visa® Platinum Secured Credit Card |
Bad credit |
|
15.75% – 18% |
N/A |
How much can you save with a credit union card?
You’ll only save money that you would otherwise spend on interest charges. If you never carry a balance, then a credit union card won’t make much of a difference in your savings. However, these cards have lower average APRs, so if you do carry a balance regularly it could be worth consolidating your debt on one of these cards to reduce how much you spend on interest.
Experian’s most recent report includes details about average credit card debt. The average balance is about $6,700. Credit union cards can help reduce a balance like this by charging minimal interest. Compared to most popular credit cards from big issuers like Wells Fargo, credit union cards will charge hundreds of dollars less per year for a balance of this size or more.
Below is a chart comparing the interest charges you can expect on some credit union cards and a popular rewards card for a 30-day billing cycle using Experian’s average credit card debt of $6,700 and the minimum interest rate.
| Credit card | Credit card ongoing APR* | Daily periodic rate | Balance | Interest for a 30-day billing cycle |
|---|---|---|---|---|
| Navy Federal More Rewards American Express® Card | 14.90% – 18.00% Variable APR |
0.041% |
$6,700 |
$82.54 |
| USAA® Rewards™ American Express® Card | 10.65% to 26.65% Variable |
0.039% |
$6,700 |
$78.36 |
|
Chase Sapphire Preferred® Card |
19.99% – 28.24% Variable |
0.055% |
$6,700 |
$110.96 |
How to choose the best credit union credit cards
There are plenty of credit union credit cards to choose from. Here are some tips for picking one that can prove most useful to you.
-
Before applying for a card you’ll want to identify your primary purpose for obtaining one. Here are some reasons why you might want one:
-
For earning rewards: Choose a card that helps you earn as much cash back or points as possible.
-
For building credit: Choose an affordable secured card with a maximum credit limit that helps you maintain a low credit utilization ratio.
-
For consolidating debt: Look for a card with a solid intro APR offer or a low APR.
-
For reducing interest charges: Find a card with the lowest possible APR.
-
-
Every credit union has different eligibility requirements for membership, with some being more selective than others. Check whether you qualify for membership or if a financial commitment is required to join. If you don’t automatically qualify, you may need to make a charitable donation, open another bank account with the credit union, or pay a membership fee.
Pros and cons of credit union credit cards
Before applying, consider these pros and cons to ensure a credit union card is the right choice for the best value.
Pros
- Safe to use. Our top picks for credit union cards come from federally insured credit unions regulated by the National Credit Union Administration (NCUA), making them just as safe to use as traditional banks. Credit union cards also come with the same consumer protections mandated by the Credit CARD Act of 2009 as traditional bank-issued cards.
- Better rates. According to mycreditunion.gov, credit unions typically offer better rates than banks. While banks have to focus on earning profits for investors, credit unions are not-for-profit organizations that reinvest their profits, which leads to more affordable financing options and lower interest rates for all products.
Cons
- Membership is required. You’ll typically have to join a credit union to access its products and services. Some are nonprofit organizations that may be easier to join than those that are limited by geographic location or to select groups, like members of the armed forces.
- Limited welcome offers or weaker reward categories. Traditional credit cards can usually offer higher sign-up bonuses, longer intro APR offers or better ongoing reward categories. Consider your initial and long-term needs before deciding if a credit union card is right for you.
Frequently asked questions
-
Credit union credit cards are ideal if you want to access lower APRs and fewer fees. They are also a good option if you want to build credit and prefer personalized service.
-
Credit unions may provide credit cards with lower APRs and fees. However, they often have lower rewards and require membership, which comes with eligibility criteria. Consider your priorities between costs and rewards when choosing.
-
Applying for a credit card from a credit union can be easier if you’re already a member, as they often have more lenient terms and lower APRs. Remember that you’ll need to meet their membership criteria to join before you can apply for a card.
What’s next?
Enter some basic information into CardMatch™, Bankrate’s prequalification tool, to find a card that best suits your needs. For more insight, our Spender Type Tool can point you in the right direction.
The bottom line
Although sometimes overlooked, credit union credit cards can offer significant value. With lower interest rates than traditional bank cards, they can provide much-needed financial relief and the potential for rewards. They may require membership, but the benefits can outweigh this minor inconvenience.
*Information about the Navy Federal More Rewards American Express® Card, USAA® Rewards™ American Express® Card, PenFed Pathfinder Rewards Card, Bellco Blue Diamond Visa Signature® Credit Card and DCU Visa® Platinum Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuers.
Why we ask for feedback
Your feedback helps us improve our content and services. It takes less than a minute to
complete.
Your responses are anonymous and will only be used for improving our website.
Help us improve our content
Thank you for your
feedback!
Your input helps us improve our
content and services.
Read the full article here
