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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Is there a credit union in Australia with branches in all states & territories?
Hi Lyn.
You can find this information on the lender’s website. Each union’s website have a feature that allows you to search for branches and ATMs around the country.
Thanks for your question.
I have a closed travel card it as a credit of $40.00. I want to transfer the money to my bank account. How do I do it?
Hi Francesca.
Which card is it? Please let us know a little more so we can offer specific information.
Generally speaking you should be able to contact the card issuer and request that they transfer the funds to a nominated account.
I hope this helps.
Does a credit union have the same status as a bank?
Hi Bev. Thanks for your question.
Can you please clarify what you mean by status.
Credit unions are different to banks mainly because credit unions are owned by their members.
Credit unions are accountable to the same laws as banks. And when it comes to their credit cards, they’re offered in conjunction with issuers Visa and MasterCard, so their credit union cards offer the same levels of fraud protection as cards offered by banks.
I hope this helps.
Jacob.
I sent my membership fee and haven’t heard anything.
Hi J,
Thanks for your question.
It could take anywhere from a few business days to one or two weeks for you to find out if you are approved. You may need to contact the credit card issuer directly to know the status of your application. You may also refer to our guide to check your credit card application.
I hope this helps.
Cheers,
Jacob