A credit union is basically a small bank, with one crucial difference being that they're member-owned. This means the credit union operates for the benefit of its members and not shareholders.
Credit unions offer the same kinds of products and services as major banks, including transaction accounts, home loans and credit cards.
Most credit unions operate in specific cities or regions of Australia but these days all of them offer online support wherever you are.
Credit union credit cards often focus on providing potential savings and ongoing value for members. As a result, their credit cards are usually low rate credit cards.
These credit cards have interest rates of around 8% to 16% (other cards can go much higher, to 20% or more). And they have annual fees of around $0-$50.
In comparison, banks and larger financial institutions offer a bigger range of cards and have their own rewards programs.
You have to be a member of a credit union to access their products. In practice this just means signing up as a customer. But some credit unions charge a $1 membership fee when you join.
Like credit unions, these member-owned financial institutions have a focus on providing value to members and offer the same kinds of products. So credit unions, building societies, mutual banks, member-owned banks and customer-owned banks are often put in the same category.
Since 2010, many established credit unions and building societies in Australia have actually rebranded as member-owned banks or customer-owned banks.
If you want to bank with a customer-owned institution and are looking for a simple, no-frills credit card, a credit union is not a bad idea.
But if you're looking to earn serious frequent flyer points, get shopping rewards or need a balance transfer, you may find that bigger financial institutions provide you with more options.
We're tracking every cut to a credit card points program ahead of the credit card surcharge ban.
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I would like to know if I could get a credit card. 0400292573
Hi Mary,
Thanks for your inquiry.
Our credit card reviews will give you the necessary information to decide which card is best for your needs. The application requirements are listed at the bottom of each review. If you meet those application requirements, then you will be eligible to apply. Please refer to a range of credit cards to compare. You can select the “Go to Site” button of your preferred credit card to proceed with your application. You can also contact the provider if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
Cheers,
Jonathan
what credit card would be the best to apply for with not a very good credit rate and on centrelink
Hi Michelle,
Thanks for your inquiry.
Banking institutions that issue credit cards have varying lending criteria and generally require a reasonable credit rating that will be able to repay the card back. Different banks have certain income, employment, and credit status requirements. For your options, you may like to refer to the following link for lenders that offer loans for Centrelink recipients.
Cheers,
Jonathan
I am on a disability pension and have been turned down for a balance transfer by major banks. At the moment I have a GO Mastercard paying an interest rate of 28% with a $3000 limit. All my financial advisers tell me to get a low interest credit card. How do I do that when on a pension? I am also told that every time I get rejected it goes against me as a bad credit risk.
Hi Alison,
Thanks for your question.
It is correct that every time you apply for a credit card it is listed on your credit file. Too many rejected card applications can have a negative impact on your credit score and can be a bad sign to lenders as you keep getting rejected by other credit issuers. Having said that, if you wait a while following a rejected card application (some card companies set a minimum of three months) then you may be able to apply for a new card.
If you’d like to look at low-interest credit cards, you can compare them, check the eligibility requirements for each card are listed on the bottom of each review page. If you’re unsure whether you are eligible, it may be worth getting in touch with the card issuer before you apply to discuss your application.
I hope this has helped.
Thanks,
Elizabeth
Thanks. I thought that was the case. The last bank I applied to was NAB and they told me the complete opposite and refused to tell me what the credit criteria was.
Are there any credit cards I can apply for if I have a bed credit rating?
Hi, Vee.
Credit cards are a product for people with a good credit rating only. A lender may consider an applicant who has taken steps to amend a default listing on their credit file. Speak to the lender directly for further information about this.
Thanks for your question.
Why is it once you retire you cannot apply for a credit card, as soon as you say you receive the pension it is a no, regardless that you may be drawing a annuity or super pension as well. I am referring to CUA but I believe the 40,000 limit applies to all. Our total income is above the 40,000.
Hi Mary,
Thanks for your question.
While I can’t comment on the lender criteria of various lenders, if you’re earning above the minimum income requirement your application should be considered regardless of whether you’re retired or not. Some applications even allow you to select retired when you choose your employment status.
You may want to consider a low-rate credit card. These cards have a lower income requirement than other cards in the market.
Please let us know if you have any further questions.
Cheers,
Jacob