NAFCU: Credit Unions Maintain Low Credit Card Interest Rates
CONTACT: Patty Briotta
WASHINGTON – With people looking for ways to better manage their finances and with many banks instituting record high interest rates on their credit cards, the National Association of Federal Credit Unions (www.nafcu.org) wants consumers to know that they can find lower rates at a credit union.
“As consumers look to improve their finances in the new year, capitalizing on the benefits of credit union membership is a great first step. Federal credit unions’ credit card and loan interest rates are capped at 18 percent and most average much lower,” said NAFCU President and CEO Fred R. Becker, Jr. “In fact, recent data shows that the average rate for a classic credit card at a credit union averaged less than 12 percent with many rates as low as 9 percent.”
In addition, most credit unions don’t charge exorbitant annual fees for credit cards. According to February 2012 Consumer Reports, credit unions’ fees were much lower than banks in all fee categories. Federal credit unions have a current interest rate ceiling of 18 percent on all loans, as established by the National Credit Union Administration.
Consumers can visit NAFCU’s credit union locator site, CULookup.com to compare the rates between credit unions and banks, identify credit unions they may be eligible to join and access 30 personal finance calculators.
Credit unions—not-for-profit, member-owned financial institutions—are a fantastic choice for anyone who wants low fees, great service, convenience and low interest rates. Credit unions offer members convenient access to thousands of free ATMs nationwide, including at key 7-Eleven locations, and shared branching.
“Credit unions may just be the best kept secret in financial services,” said Becker. “But more and more Americans are learning the value and rewards for joining one and better credit cards are just one of the outstanding benefits of credit union membership.”
NAFCU is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.