Are credit unions harder to get credit/loans from?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Are credit unions harder to get credit/loans from?

Postby NorthCol » Mon Nov 12, 2012 4:56 pm

Are credit union cards more difficult to get than national bank cards? I would think that credit unions are much smaller issuers and therefore cannot take on the kind of risk that the bigger national banks can.

I do notice credit limits that are much more than national banks in general so I wonder if you have to be a credit union member for several years to get a large credit limit comparable to the biggest national banks.

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Postby Gamma » Tue Nov 13, 2012 11:25 pm

I would think the process of obtaining credit/loans from a credit union would be no different than from a big bank, unless the benefits of the card are great (PenFed for example,) than it would be much harder to obtain, but that's the same with any financial institution. Not everyone can open an account with certain Credit Unions unless you meet certain criteria (living within a certain area, specific job, etc.) As for the credit limit, the credit union that I worked for did give generous credit limits to those who had alot of money within their accounts and a decent limit with those who just opened an account for a credit card.

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Postby Ratfacedudeguy » Wed Nov 14, 2012 8:07 am

The answer to this question really varies by credit union. You're right -- a credit union can't afford to have as much of a risk exposure as a big bank. That being said, my credit union's process for credit cards is quite different from any bank I've dealt with. Our credit cards are subject to normal underwriting procedures, so that means that anyone with an EQ FICO under 700 will be required to show proof of income, DTI standards are the same as any other loan, and members are required to sign an application before the card account can be issued. But, alongside of this, credit unions really do value their longtime members (especially if they keep high deposit on hand balances with them) which more than likely explains some of the huge limits CU cards you've seen.
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Postby Dylan1982 » Thu Nov 22, 2012 4:22 am

I'm a great member at my CU. I had no problem getting a $16k car loan (paid off now), when needed a personal loan for $3.500 (paid), $1,500 (paid) and now a $4,200 loan that is open.

I've opened all my accts with the same personal banker or what ever they are called.
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