If you’ve dealt with the friendly experts at Wasatch Peaks in the past, you know we’re your go-to stop for many loan formats – home loans, auto loans, RV loans and many more. Did you also know, however, that we offer Visa Platinum Cards with low rates and great benefits?
As a credit union offering credit services, we hold a few specific advantages over for-profit banking institutions. What are these advantages, and how can they benefit you? Here’s a look.
Interest Rate Considerations
Federal laws prohibit credit unions from charging interest rates higher than 18 percent – there are no such restrictions on for-profit credit card companies. The average interest rate for cards with these institutions is nearly 17 percent, far higher than through credit unions.
In addition, interest charges on credit union issued cards are 20 percent lower than the same cards issued by banks on average. Both on the lowest and highest ends of the spectrum, credit unions offer lower rates for the same services.
Credit unions also levy fewer fees and penalties for their customers than banks do. The average credit union customer pays $20 for a late bill payment or exceeding credit limit; the average penalty for this same thing at a bank is $39. Banks also charge much higher rates for cash advances.
Credit unions are owned by their members, meaning they’re not incentivized by the same things as Wall Street banks who must please investors. Profit on credit cards and other loans go back to credit union members in the form of lower rates on mortgages or savings accounts.
Seventy percent of credit union members claim that their financial institution put customers’ interests above their own, according to Forrester Research – only 58 percent of bank customers had the same opinion. In general, satisfaction rates are higher for all credit areas.
Want to learn more about why a credit union is beneficial for a credit card, or about any of our home loan or other services? Speak to the experts at Wasatch Peaks today.