Is Credit Card Debt Through Credit Unions Better Than Through Banks?

Can using credit unions as your credit card debt provider be the answer to avoiding out of control big credit card issuers unethical practices to their own customers? By now it is common knowledge that Congress has approved a new credit card debt reform bill which goes into effect the beginning of next year.

This new credit card debt reform bill is stated to have the main purpose of protecting consumers from what is considered to be unethical business practices by large Banks and credit card companies. It appears that these creditors have been charging aggressive fees and interest rates to profit at the expense of their own customers.

It also appears they do this practice to all customers regardless of their good standing and/or longtime association with the banking institution. Now there’s a new player in town that just might be your ticket to avoiding all this unethical business practice by the banks and other creditors when it comes to credit cards.

 It appears that one major creditor that is nonprofit and ran by its members has been right under our noses the whole time. Yes I’m talking about Credit Unions. They issue credit cards that can be used nationally just like the banks. But unlike the banks they have been highly ethical when it comes to financial dealings with its customers and any consumer that joins.

Their interest rates on loans have always been better than banks and you never hear any outlandish stories of unethical business practices. Many might say but they don’t offer rewards and frequent flyer miles like the big credit card debt companies. They don’t have the special programs that the banks have such as zero interest on balance transfers.

Well by the time you’ve paid the extra interest charges and fees to the banks, you’ve pretty much paid for any rewards, frequent flyer miles, or no interest charges for a year on balance transfers. Many if not most consumers do not participate in any of these programs and the programs come with small printing in the agreement that pretty much allows the banks to change the no interest rates for a year at their discretion on all kinds of little violations.

One violation being that if you are ever late your interest rate will increase dramatically. Also these days fewer and fewer banks are offering any great incentives to consumers. There is the downfall of some smaller credit unions not issuing credit cards and sometimes the controlled limit to membership.

Also although the credit unions are nonprofit there’s no guarantee that in the future they won’t become just as aggressive as the banks. But at the present time if you have credit card debt through the credit union and you are carrying a large monthly balance you would save tremendously from the lower interest rates and receive better treatment.

Also if you are already having credit card debt problems there’s a chance the credit union wouldn’t give you a credit card.There are credit unions willing to allow membership to anyone such as The Pentagon Federal Credit Union, for instance.You can Google them to find out more information on joining.

One quick way to search on the internet for credit unions to join is to do a search on the national association of credit unions.If you are fed up with the big banks unethical practices on dealing with credit card debt and like having the usage and handiness of credit cards in your pocket, then consider credit unions as a better option. If you are a current credit union customer using their credit cards, please give back some feedback on how your treatment has been.

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