Credit Unions
by admin on 22/11/09 at 9:39 am
If you have been paying attention to the latest credit card news, you have probably noticed that things are getting a lot worse for consumers. If you, like so many people, have credit cards, you have probably also noticed that your interest rates have risen and your credit limit dropped. Even if you’ve made all your payments on time and have never maxed your card out, you could be affected. What does all this mean to you? It means two things- you won’t see any real credit card help until the middle of 2010, and also that you better make your payments on time.
It might seem a little punitive to send a consumer straight to default if they are only a few days late, but companies are legally allowed to do so. And, the very high interest rates that they charge during a default will keep you from paying your balance down. If you end up in default, what should you do? The answer may lie in your nearest credit union. Credit unions operate under a different set of rules, and they seem to be more consumer-friendly. Here are a few main differences between credit unions and credit card issuers:
-Lending rules are harsher than ever, due to the credit freeze. Banks have become far more selective about lending, but credit unions are more willing to work with those who have poor credit. Credit cards from a credit union have lower interest rates than bank-issued cards, with rates capped at 18%- and the rate will stay that low even if you default.
Default rules on credit union-issued credit cards are far more reasonable, with most credit unions overlooking a few late payments before they do anything. Of course, your credit union’s rules may be different.
In today’s poor economy, consumers need all the help that they can find. Certainly, a thirty percent interest rate won’t help, especially when someone is having trouble making payments to begin with. If your credit card company has raised your rates too much, consider getting a card from your local credit union.
Click here for the best credit card debt help and advice, and be on your way to being debt-free.
