Credit cards issued by credit unions typically offer more favorable terms than those offered by banks, as reported by Bankrate.com. Specifically, credit union-issued credit cards tend to charge lower interest rates and issue fewer hidden fees; this is in part because credit unions have members, not customers, and they are member-owned rather than publicly traded companies, so the desire to turn a profit at customer expense is not as clear and present with credit unions as it is with banks. Credit unions tend to only offer their cards to members, which may be inconvenient for those who are not already members of the credit union, but this may add convenience for those who already hold bank accounts with the credit union that issues the card.
One of the benefits of being a member-owner rather than a customer is that the credit union's executives are much more likely to listen to personal appeals than bank leadership usually is. This means that if a member's credit card application is denied, the member has a better chance of being able to appeal this decision with a credit union, states CreditCards.com. This personal touch does not just apply during the application process, either. Credit unions have a history of altering credit card terms for members who are demonstrated to be suffering genuine financial hardship.