My credit card company just raised my rate. Should I switch to a credit union?

I have always paid my bill on time. I have never exceeded my limit. I have always been a good customer. Ofcourse they don’t care. They are raising the rate because they can. I am considering joining a credit union and transfering my balance to one of their credit cards. The rates are much lower. Are any of you guys members of a credit union? Do you like it?

By | 2013-08-27T03:20:59+00:00 August 27th, 2013|Mortgages Home Loans Interest Rate|3 Comments

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3 Comments

  1. D J August 27, 2013 at 4:58 AM - Reply

    If you are carrying a balance on your credit card you should be able to opt out of the interest rate hike.
    You should be able to pay off the balance at the old rate & then you will not be able to use the card for new purchases & the account will be closed when you pay it off. Join your local credit union & see if they will issue a replacement account for you to use. They generally carry better interest rates.
    The best way to beat the higher interest rates is to not carry a balance. Try to curb your spending & pay cash or charge only what you can pay off when the bill comes due. Hard but look at the amount of money you could save by not having to pay interest on your purchases.

    I have been a member of a credit union since I was 6 years old, I’m now 55. They have financed cars, personal loans, credit cards & motorcycles loans over those many years. They would also finance my mortgage,but I got a refi recently with Bank of America. I highly recommend a credit union. While other credit cards are raising interest rates & lowering credit limits, the credit union is working right along with the same interest rate for the last 5 years with no hike in sight. And the credit limit, no reduction.
    When you join a credit union you are not a customer, you are on owner. Your deposits equal shares in the credit union, you can have a voice in the policies.

    To build your credit, have a least 4 credit cards & use them at least twice a years to keep them active in your credit mix. Look for cards with no annual fee & rewards, cash back works for me.
    Use them wisely & keep the balances paid of full every month. That way you will build your credit history & save yourself money in the long run.

    Good Luck

  2. Ted August 27, 2013 at 4:11 AM - Reply

    Credit unions can be good. However, you shouldn’t be that concerned about the rate because you shouldn’t be carrying a balance on your card (any card) for a long period of time. That’s not what they’re designed for. Credit cards are a super expensive way to do long term financing.

  3. TaylorProud August 27, 2013 at 3:41 AM - Reply

    Oh That is going on every where, and if you can transfer to a Credit Union you will be 100% better off, I have had credit union accounts for over 30 years and they are so much better to deal with Cheaper, they give you loans easier and the banking and checking is easier, I got a preapproved Car loan through them and they take the payment out weekly as my check is direct deposited so a 300 car payments costs me $75.00 a week and I barely know I make a payment they take it out of my account each week it is cheaper and I don’t have to write a big check for $300.00 each month.

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