Credit Union Fees Lower than Banks, Sources Say

Posted On: February 22, 2010 at 9:14 a.m.

Filed Under: cash advance credit unions new york times

When making financial decisions, we have to do our homework. There are so many options out there, we can’t get stuck doing the wrong thing. In the past, it may have seemed that banks were more stable, more reputable than credit unions, and that banks had the leverage to keep interest rates low, especially for cash advance loans. However, the New York Times is reporting that credit unions today may just be the way to go. Here’s a bit of what they are reporting: “The median late and over-the-limit fees with bank-issued credit cards was $39, for example, compared to $20 for credit union cards. Most banks also charge balance transfer fees, while only a quarter of credit union cards do so, according to the Pew study. [[ads]] The median interest rate banks charged for a cash advance was 20.2 percent to 21.2 percent. At credit unions, it was 10.2 percent to 13.8 percent. Whether the lower fees and rates make it worth switching over to a credit union depends on your habits. If you regularly carry a balance, the difference in financing charges may add up quickly” (http://www.nytimes.com/aponline/2010/02/08/business/AP-US-Your-Money-Credit-Union-Cards.html). Those numbers are surprising! In some cases, banks are charging double the interest!