Updated: July 2, 2024
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Getting a credit card from a credit union requires that you become a member of the credit union first. Since these cooperatives are member-owned, they tend to charge lower interest rates and fees when compared to banks. Eligibility criteria for membership to a credit union vary and might require affiliation to a certain group, such as a labor union or the armed forces.
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When it comes to the choices on offer, Navy Federal and USAA are among the best credit unions for credit cards. While Navy Federal currently provides 10 credit cards, USAA lets you choose from five different cards.
Selecting the right credit union credit card requires that you pay attention to the annual fees you might need to pay and the rewards/cash back you stand to earn. Our in-depth comparison of the top cards also accounts for intro APR offers, regular APRs, foreign transaction fees and other benefits.
We’ve selected the best credit cards from credit unions based on different requirements that people might have. For example, while the Gold Visa® Card is a great option for people with excellent credit, those with fair or average credit might consider looking at what the GO REWARDS® Credit Card has to offer. Both cards come with no annual fees, and only the latter offers rewards.
Card Name | Annual Fee | Reward Rate | Recommended Credit |
|---|---|---|---|
| $0 | None | Good–Excellent |
$0 | 1–5 points | Good–Excellent | |
| $0 | 1–3 points | Fair–Excellent |
| $0 | 1.5% – 2% Cash Back | Good–Excellent |
$0 | 1.5%–1.75% Cash Back | Fair–Excellent | |
| $0 | 1.50% – 1.75% Cash Back | Fair–Excellent |
$0 | None | Fair–Excellent | |
| $0 | 1.5% – 2.5% Cash Back | Good–Excellent |
| $0 | None | Good–Excellent |
| $0 | 1–3 points | Fair–Excellent |
Some of the links in the above table will take you to one of our partner's sites, where you can compare and apply for a selected credit card.
Much like other credit card issuers, credit unions offer different types of credit cards. These include rewards cards, cash back cards, low APR cards, balance transfer cards and secured cards. You can narrow down your search further based on aspects such as welcome offers and foreign transaction fees.
| Credit Card | MoneyGeek Rating | Regular APR | Annual Fee | Rewards Summary | Recommended Credit |
|---|---|---|---|---|---|
| 14.90%–18.00% variable | N/A | Earn 1.5% to 1.75% cash back cashRewards credit cards earn 1.75% cash back on net purchases for cardholders with direct deposit at Navy Federal, or 1.5% cash back for cardholders without direct deposit. Rewards are earned on eligible net purchases. "Net purchases" means the sum of your eligible purchase transactions minus returns and refunds. Eligible purchase transactions do not include, and rewards are not earned for, the following transactions: cash advances, convenience checks, balance transfers, gambling, or fees of any kind, including finance charges, late fees, returned check fees, and ATM cash advance fees. Cash-equivalent transactions, such as the purchase, loading, or reloading of gift and prepaid cards (e.g., money orders, GO Prepaid Cards, and other cash-equivalent gift cards), may not be eligible purchase transactions and may not earn rewards. To be eligible to receive 1.75% cash back on net purchases with your cashRewards card, you must either currently have direct deposit at Navy Federal or must set up and maintain direct deposit at Navy Federal. Direct deposit is defined as a recurring ACH from your employer, military pay, or certain government agency pay or benefits deposited into your Navy Federal deposit account. You will start earning 1.75% cash back once we confirm you have direct deposit at Navy Federal. | 580 – 740 (Fair to Good) | ||
| 17.99% variable | $0 | Earn 1.5% – 2% cash back Earn 1.5% cash back on all purchases made with your card. PenFed Honors Advantage Members earn 2% cash back on all purchases. | 670–850 (Good to Excellent) | ||
| 17.49% – 27.49% variable | $0 | Earn 1.5% – 2.5% cash back Earn 2.5 percent cash back on all purchases (on up to $10,000 in qualifying purchases each billing cycle, then 1.5 percent) with a qualifying Tier One Rewards status. Unlimited 1.5 percent cash back with Tier Two Rewards status. | (740 – 850) Excellent |
Our selection of the best credit union credit cards begins by collecting 57 data points from issuer websites and the Consumer Finance Protection Bureau. We then subject all the cards to our unique ranking methodology and compare them based on different parameters. Each criterion comes with a pre-assigned percentage, and the best cards of the lot fare well across most aspects. The data points we rely on include but are not limited to:
Credit unions are member-owned financial cooperatives. They function as not-for-profit organizations with the aim of serving their members. Credit unions typically provide financial solutions similar to banks, some of which include deposit accounts, credit cards and loans. However, unlike a bank, the profit that a credit union generates is transferred to its members in the form of better interest rates and lower fees. This is one of the main reasons people choose to get credit union credit cards.
Many credit unions issue credit cards. Depending on the credit union you’re a member of, you may be able to choose from cards for individuals and businesses alike. Cards for individuals may come in the form of low APR cards, rewards cards, student cards and secured cards.
While some credit unions require that you become a member first, others let you submit your membership application together with your credit card application. An easy way to look at the credit cards that a credit union offers is to visit its website. Alternatively, you may walk into any physical branch and check which cards you might qualify to get.
The advantages of getting a credit card from a credit union may come in the form of:
The possible downsides of getting a credit union credit card include:
Credit unions are an ideal choice for consumers looking for cash back rewards and credit cards whose fees and interest rates are lower than those of a traditional bank. Before applying, review the membership requirements carefully to ensure that you are eligible to join. — Lee Huffman, credit card expert at BaldThoughts.com
Since getting a credit union credit card requires that you become a member of the credit union first, you need to ensure that you meet the required membership eligibility criteria. Once you become a member, getting a credit card through a credit union is usually easier than through a bank, even if you have less-than-perfect credit.
If your credit union declines your credit card application at first, you might be able to get it to reconsider its decision. This is because most credit unions give their members a chance to explain their individual circumstances. If you have maintained a good relationship with your credit union for an extended period of time, the chances of your application’s approval improve further still.
How long it takes for you to receive your new card depends on how you apply as well as your credit union. For instance, applications sent by mail usually take longer to process, as is the case with over-the-phone applications. Even if you apply online and get instant approval, it can take up to 14 days for the card to get to you. Some credit unions offer expedited delivery for an additional fee.
Getting a credit union credit card affects your credit score the same way as getting a credit card issued by a traditional bank. For instance, if you borrow close to your card’s total available credit limit, you may expect an adverse effect on your credit utilization ratio and credit score. Credit utilization ratio refers to the credit you’ve used from your total available credit and should ideally be lower than 30%.
Making all your payments on time may help improve your credit score, whereas missing even one payment can have a negative effect. In addition, much like a credit card from a bank, the longer you hold a credit union credit card, the better it is for the length of your credit history, which is another factor in calculating your credit score.
As long as you keep making your payments on time, keep your credit utilization ratio low and don’t apply for new forms of credit often, you can expect your credit union credit card usage to improve your credit score over time.
Understanding the answers to commonly asked questions about credit cards from credit unions will help you arrive at a well-informed decision.
More often than not, you need to belong to a particular group of people or live in a specific region to become a member of a credit union. For example, some credit unions limit membership to a company's employees, a college alma mater or current and former active duty military. Depending on the credit union you join, you might need to pay a one-time joining fee or an annual fee. Most credit unions come with fewer branches and ATMs when compared to bigger banks. Some credit unions don't offer all the services you might expect from conventional banks. In addition, not all credit unions invest adequate resources in developing technology.
Various credit unions across the country give you easy means to become members. For example, you may become an Alliant Credit Union member if you join Foster Care to Success, a nonprofit organization, and Alliant covers your $5 joining fee. To become a member of the Affinity Plus Federal Credit Union, you need to make a one-time $25 donation to the Affinity Plus Foundation. Other credit unions that let you become members relatively easily include Connexus Credit Union, Air Force Federal Credit Union, Blue Federal Credit Union, Consumers Credit Union, Expedition Credit Union, Latino Credit Union, NASA Federal Credit Union and PenFed Credit Union.
Eligibility criteria vary from one credit union to the next. While some offer membership to all Americans, others might limit membership based on criteria such as the industry you work in or where you live.
Credit unions tend to charge lower fees and offer better interest rates when compared to most banks. Like banks, several credit unions offer an array of financial products. As long as your credit union is a member of the National Credit Union Administration, your deposits are federally insured. Credit unions also tend to offer more personalized service when compared to banks.
Credit unions tend to have more competitive interest rates and lower fees when compared to banks. They also usually offer increased flexibility when it comes to making lending decisions. Although banks typically have more branches and ATMs, several credit unions overcome this problem by being a part of shared branch networks. However, banks generally fare better than credit unions when it comes to providing online solutions and support.
There is no single best credit union for getting credit. Your eligibility to join and individual requirements play a key role in selecting one that works well for you. For example, if you have poor credit, you might want to limit your search to ones that provide secured credit cards. On the other hand, if you wish to keep your reward earning simple, you might benefit by looking at credit unions that provide cash back credit cards.
Some credit unions provide student credit cards. Examples include Consumers Credit Union, USC Credit Union, Signature Federal Credit Union, Landmark Credit Union and San Mateo Credit Union.
Yes, some credit unions offer credit cards for businesses. Examples include Navy Federal Credit Union, Connexus Credit Union, Affinity Credit Union, Interra Credit Union, USU Credit Union and Neighbors Federal Credit Union.
Now that you know how credit union credit cards work, determine if you might benefit by getting one. Alternatively, you may look for options based on the different types of cards available, such as cash back cards, airline cards, 0% APR cards and balance transfer cards.
About Doug Milnes, CFA
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.
Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
