How Credit Union Cards Can Help Improve Credit

Getting a credit union citation card and using it in the right manner can help improve your creditworthiness. While qualifying for a typical recognition union wag requires good to excellent credit rating, you may want to consider getting a secured tease if you have poor or fair citation. Joining a credit coupling gives you other ways to improve your credit, one of which includes getting a accredit builder loanword.

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MoneyGeek ‘s Takeaways

excellentCredit Making payments toward your credit union card on time may help improve your recognition score .fairCredit Using a large partially of your card ’ sulfur credit limit may have an adverse consequence on your credit score .goodCredit If you have poor people or average accredit, you may consider getting a secured credit union credit menu.

Does a Credit Union Credit Card Help Build Your Credit Score?

A credit rating union credit poster helps you build your credit sexual conquest just like any early credit card. When you make payments toward your credit union card, you can expect your card ’ mho issuer to report your payment history to credit chest of drawers. Making your payments on time helps improve your credit score, and the converse holds true equally well. The come of money you use from the total available credit of your credit union card besides has a digest on your credit score. For case, if your credit union card has a citation limit of $ 5,000, of which you ’ ve used $ 4,000, its credit use ratio is 80 %. however, if you ’ ve used barely $ 1,000, the credit use ratio is 20 %. If you wish to improve your credit grudge, your credit utilization ratio should be 30 % or lower.

Secured Credit Union Cards

People who are ineffective to qualify for regular credit marriage credit cards may want to consider improving their credit scores by getting secured credit cards. You need to pay a security deposit to get a secured recognition marriage card, which normally besides doubles as your credit line. Credit unions report payments made toward procure cards to credit agency, thereby giving cardholders the ability to build their citation histories. Examples of secured credit union recognition cards include :

  • Rewards Secured Credit Card from Navy Federal Credit Union
  • Secured Visa Card from USF Federal Credit Union
  • Secured Visa Credit Card from America First Credit Union
  • Secured Credit Card from USC Credit Union
  • First Credit Union Visa Secured Credit Card

The Credit Union Advantage

accredit unions are run as nonprofit organization fiscal cooperatives, which is why they place top precedence on addressing the needs of their members. Since credit union credit cards typically offer lower interest rates and fees than banks, cardholders can use their money more efficaciously when repaying their credit rating circuit board debts. By bringing down your outstanding balances cursorily, you can expect a positive effect on your creditworthiness. other benefits of joining a credit union include getting access to unblock on-line credit-building tools adenine well as credit guidance that might help you deal with different types of fiscal situations .


What Credit Score Is Needed for a Credit Union Credit Card?

Qualifying for most credit union credit cards requires that you have good to excellent credit. however, some credit unions besides provide cards for people with inadequate to average credit. For case, while you need very good to excellent credit to qualify for the Visa Signature Flagship Rewards Credit Card from Navy Federal Credit Union, the More Rewards American Express Credit Card is available flush for people with average credit. If you have bad credit or have just started building your accredit history, you may want to consider getting a secured credit union accredit card. A issue of credit unions across the state offer secured cards for their members. You need to pay a security lodge to get a procure tease, and the like typically functions as your credit limit. You need to make regular payments toward the purchases you make using your calling card. The issuer of your menu reports your payment history to recognition chest of drawers, thereby giving you the means to build your accredit score .tip icon MONEYGEEK EXPERT TIP look for a credit union card based on eligibility criteria, annual fees, APRs and the possibility to earn rewards. We ’ ve put all the leading accredit union cards through our alone ranking methodology so that you can select one with relief.

Is It Worth Joining a Credit Union?

There is more to joining a credit marriage than getting a credit rating tease to improve your credit. Besides, unlike banks, most credit unions are volition to reconsider your application for a credit card if it ’ randomness denied the first time about. This is because citation unions normally look beyond credit scores and give their members opportunities to explain their fiscal situations. Your chances of approval increase if you ’ ve been a good, long-standing customer. Some accredit unions evening reconsider giving you a batting order if you agree to enroll in fiscal education classes. Before deciding to join a credit rating marriage, take time to understand the potential pros and cons :


  • You gain access to different financial products such as credit cards, savings accounts, checking accounts, auto loans and mortgages.
  • Credit unions typically offer lower interest rates and fees than banks on credit cards and loans.
  • Credit unions typically offer higher interest rates than banks on savings accounts and certificates of deposit.
  • You typically receive better customer service than at large banks.


  • You might need to meet specific criteria to become a member.
  • Cross-collateralization might link all your credit accounts with a credit union together, although this is not always the case.
  • Not all credit unions provide 24/7 customer service.

MONEYGEEK EXPERT TIP credit unions used to be fairly restrictive about who was eligible for membership. now, becoming a member is easier than ever. This gives more of us an opportunity to benefit from their low rates and fees. — Lee Huffman, credit card expert at

Other Questions You May Have About Credit Union Cards

Understanding the answers to other normally asked questions about joining a credit union and getting a credit union recognition card will help you make a intelligent decision .

Joining a credit union will not raise your credit score mechanically. If you join a accredit union to build credit, you need to handle your credit in the right manner. For case, while it ’ sulfur significant that you make all your payments on time, it ’ second besides crucial that you keep your credit utilization proportion at 30 % or lower. The credit use proportion refers to the amount of money you ’ ve used compared to your total available credit .

Joining a credit marriage can help build recognition, provided you follow the right steps. For exercise, if you join a credit union with badly credit, you may want to consider getting a secured credit rating batting order to improve your credit score. This is besides an option if you ’ re new to citation .

It is common for credit rating unions to restrict membership to particular communities. For exemplify, Navy Federal Credit Union offers membership chiefly to serving and retire members of the armed forces and their families vitamin a well as to personnel from the Department of Defense. A number of credit unions have community charters, which opens up membership for anyone occupy, working, going to church or attending school within a predefined geographic area. adenine hanker as you ’ re within the telescope of a accredit union ’ s membership criteria, you may join. You can look for accredit unions in your vicinity by using a simpleton on-line tool provided by the National Credit Union Administration .

Yes, accredit unions report payments made toward credit rating cards and different types of loans to credit agency .

depart by becoming a member of the credit union through which you want a credit wag, provided you meet its membership requirements. The adjacent step is to apply for the credit card in motion. Remember that your lotion for a new card is subject to approval.

Next Steps

nowadays that you know of benefits that accredit unions have to offer and how credit union citation cards can help build recognition, consider becoming a penis of one based on eligibility criteria and the cards on crack. To select a desirable menu, compare your options against parameters such as fees, interest rates, rewards and added features.

Learn More About Credit Cards

Members of the MoneyGeek column team aim to answer all our readers ’ questions about how credit cards employment, how to improve credit scores and how to choose desirable recognition cards promptly and accurately. They do this by staying up to date on all the changes that take home in the accredit card commercialize. About the generator Rajiv Baniwal has been writing about different fiscal topics for over 15 years. meticulous in his research, he makes certain he provides accurate and up-to-date information. His areas of expertness include mortgages, personal loans, credit cards, policy and external money transfers .

*Rates, fees or bonuses may vary or include particular stipulations. The capacity on this page is accurate as of the posting/last update date ; however, some of the offers mentioned may have expired. We recommend visiting the wag issuer ’ s web site for the most up-to-date information available.

Editorial Disclosure:

Opinions, reviews, analyses and recommendations are the writer ’ s alone and have not been reviewed, endorsed or approved by any bank, credit poster issuer, hotel, airline, or other entity.

Advertiser Disclosure:

MoneyGeek has partnered with and for our coverage of credit calling card products. MoneyGeek, CardRatings and may receive a commission from calling card issuers. To ensure exhaustive comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated tease issuers that are not paid partners .

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Category : Finance

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