The Good And The Bad About Credit Union!

If we talk about Credit Union, I am sure most people already know about it! in fact most credit union are already in front of you! though not many people will choose them over the Banks! 😎  Why ? not so sure the reason, and less than a  half of American  choose credit union! the rest they prefer with Banks!  

To be honest, it's nothing wrong choosing Banks, rather than credit union! even though, you must realize that most credit union, actually can give better rates, if we talk about Credit product! e.g Auto loans, Mortgages loan, Home Loans, Student Loans, Personal loan Credit cards and etc! Meanwhile Banks, can give you better rates, since they have to share and pay tax to Government! that's why Bank will never lowering their rates! at least if you don't have real value, banks will not decrease their rates! but of course if you talk to them nicely, and make negotiation, you could decrease your current APR with them!

in short Credit Union APR APY or interest rest or much more better than banks can give! but of course, it doesn't mean Credit union don't have weakness or restriction especially since most credit union are not for profit! the only weakness that credit union have are, they only for people that live near them, and some credit union only for certain group, Profession, and etc!  and because of this reason many people failed to become their member! though some credit union can make exception, especially if you have good credit score! afterall, who doesn't want costumer that have good credit ? 😎

If we compare between Bank and credit union basically these 2 financial institution actually are quite different! because first of all, doesn't mean bank sell Credit cards, or any credit product! because most of Banks, usually only sell banks product such as, saving deposits, Money transfer, Current account, Check and etc! but if pay attention with Loan products, such as, Personal loan, Credit cards, Mortgages loan, auto loans,  home loan and etc! actually they have different division or company! though most of credit product using Bank Big brand to make easy to sell their product!

But if we talk about Credit Union, for sure, most of their product are about credit or loans! because from their names, they already stated, that they are Credit union! that's why most Credit union provide Credit and loans! e.g Student loans, Home loans, auto loans, mortgages loans, credit cards and etc! but for saving , for sure, you can't freely doing transfer with Credit union! and also there are restriction for people to transfer more than 7 times! But I am not surprised if The Fed, giving that kind of rules! cause if not, Credit Union can compete with banks! 😎 lol!

In short Credit union are Good For Credit or loans! but for banking activity such as saving, Deposit, Bank are the best place!

Does Credit Union Better than Any Credit Cards Company ?

which one better Credit Cards Vs Credit Union ? well, the answer would be vary! because it will depend on many factor! such what you need, what you want, limit, accessibility, Prestige's, Brand, Rates, and etc! but if you only focus on interest rates, then Credit union is your best option to get low APR! because most credit Union can give low APR than any bank can give! For example, most credit cards company for the second tier such as wall mart, Best buy, amazon, ebay, helzberg or something like that! their best APR are about 23%! either for purchases, or cash advances! but most of the time, you can't get cash advances! simply because their credit cards, are design to make purchases, not get get money from them! 😎

But lets talk about the top tier Credit cards, such Citi, Discover, Amex, Bank Americard, Chase sapphire, and etc! their best APR (annual Percentages Rates) are about 14%! for purchase, and for cash advances are about 23%! the only different between department credit cards company or second tier, with top tier are their APR purchases same with cash advances i.e 23%, but for top tier credit cards, you can get better APR about 14%, so I am not surprised if mos people will prefer with top credit cards company! simply because their APR are better than second tier can give!

But if we compare Top credit cards APR, with Credit union, the different are almost a  half! i.e 10% APR, for several cases, you can get 5% APR! yep, very far from bank can credit union! there reason why this happen! and why credit union can give lower APR than bank ? well, the reason simply because credit union are non profit Org! but they not charity! so basically what credit union do actually, they make business with free tax! yep, they don't pay tax, they don't share profit to stake holder and etc! and as result, APR Credit cards from credit union are much more better than any banks, can give! unless 1 Bank for sure 😁 but if we talk over all about  APR credit cards company VS credit union, credit union are much better than any banks can give!

But in reality, many people will prefer credit cards with big bank or such as!  and if we asking why the reason they not choose credit union! well, the answer are, many people need credit cards with good brands, good ads and etc! but it doesn't mean they don't know about credit union! and also credit union basically are not for everyone! because most of credit union actually only for certain people or group, or sometime, they only for people that have certain profession such as lawyers, doctor, Fireman, Navy, and etc! but at this time, Credit union are about to change to make that restriction are become less obstacle especially for people that needing credit!  just for example, NFCU, at first they only for navy or DOD family that work with, but now, they make some exception, by making join owner account available! so even if you don't work in military still, you can use NFCU, product!

Credit cards with low APR are for sure big help for millions people out there! but at this moment credit union are the best option to get low APR! though the reality many people will choose bank, than credit union! so what's the deal ?  In real life, sometime what want will not always come true! but it doesn't mean it's best for us! it could be we lack of information, or have restriction! but if you asking does Credit union are better than banks, or any commercial credit cards company! then my answer is, yes, credit union can give low APR for any loans product!  but if you want wider accessibility and prestige's then bank would be the best answer! 

How to Build Credit Score Fast ?

if we talk about credit score, the most common that most financial company use are FICO Socre! since fico put heavy weight on 5 factors! e.g Payment History, Amount Owed, Length of Credit History, Credit Mix, and New Credit! if you pay attention to those 5 factors, actually Credit length only 15% from over all score! it mean if you focus on other 4! such payment history, Amount Owed, Credit Mix, and new Credit! actually you can get 85% score! 

But I have to be honest, I never said, you can build Good credit score with in 1 month! :D because it's almost impossible to do that! at least if you choose 12 month billing cycles payment! FICO can give score after 12 month! but there's a chance, if you choose 6 month payment, and always pay on time, and also already have other credit such as auto loan, mortgages loan and etc(credit mix) and also you have decent debt utilization and not more than 80% lets say 50%, or if you can before 6 month, you already pay fully of your debt ! there's a chance  less in 6 month! you already have decent credit! 

But for most company most of them will prefer with 1 year credit history rather than less than 6 month or 1 year!  because credit  history in 1 year are not short time, so the idea is to filter some bad guys, that have bad intention to credit cards company so they can short out, these people! but for people that already pass 1 year, and have good credit most of the time you will get approval for any credit application that you apply! but of course you need to have good Credit history! 

So, if you want to build Credit History fast less than 6 month! here what you do!

First, purchase something! and choose 6 month billing cycles! use maximum limit of you credit card! then pay 50% of your total debt! with in first month! so now you have 5 month to pay full of your debt! if I were you, I will not pay minimum payment! because 80 % credit utilization are red flag! but it doesn't mean you can't use maximum credit line! it's just don't pay to long and make them nervous! :D lol! anyway, if can and possible, pay off your debt less than 6 month! and then, the next things is try to make variation such cash advances, or transfer balance! again use maximum your credit limit! or 80% at minimum! the idea is, not only to build credit score but also you want to increase your credit line!

If you use maximum credit and always pay on time! and credit utilization never exceed more than 80% before grace periods! there's a chance, that your credit line will increase very fast! for several cases, your credit card limit will increase automatically! even though if you give a call to them and ask to raise credit line! I don't think they have reason to say no!😁

just remember it's okay to spend maximum credit limit! but it's not okay to pay to long! because who don't want profit ? but who want lend money to people that always pay to long ? for sure nobody want that! so in short, max your credit cards, pay fast, and use variation! credit mix it also mean auto loans, mortgage loans and etc! as long you make late payment to other credit bills, the chances your credit score are on decent rates! because credit company realize, they also should aware, that other credit payment such auto loans and mortgages loans are in good records! afterall, most creditor are in same boat! 😂