Find the best credit card offers online.The cost of owning a credit card is fast rising to record highs and, as consumers continue to flounder amidst the financial turmoil caused by the economic crisis, the rising unemployment rate and the credit card crisis, better alternatives are very much needed by consumers. If a recent survey by the Pew Health Group is to be believed, credit unions may be the answer.
Pew Charitable Trust, a non-partisan, nonprofit group recently took a look at four hundred financial institution to determine the response that the Credit CARD Act was getting from them. The Credit CARD act became law early this year when lawmakers decided to finally provide some much needed protection to consumers who were being victimized by the predatory practices of credit card companies. Predictably, the law has received stiff resistance from credit card companies and, if the figures from the study of Pew Charitable Trust is to be believed, that resistance has not weakened even as the bill nears activation.
The study found out that, since the passage of the Credit CARD act, a number of major banks in the US have changed their credit card terms, usually not in accordance with what legislators expected when they passed the Act. Bank of America, Capital One and Discover raised the lowest advertised interest rate of their credit cards by at least 20% during the first half of 2009. American Express and Wells Fargo were the only two among the major banks of the country that lowered their advertised credit card rates.
While major credit card companies are costing card holders hundreds of dollars in fees and interest, the Pew Charitable Trust has found that credit unions offer a much fewer expensive alternative. According to their study, the twelve largest credit unions of the US offered a median advertised interest rates at 20% lower than those offered by major banks. For cash advances, credit union charges are as high as 13.75%, much lower than the 21.24% charged by banks. Missed deadline penalties for credit unions average at 17.9%. Banks charge on average 28.8%.
Other cost savings credit union card holders are seeing are late bill payment fees with a median of $20 and over-the-limit fees with a median at $39. Many credit unions also advertised outstanding card balance interest rates at 10%.
Credit unions are usually nonprofit organizations who are owned by the members themselves. The members also usually have a common affiliation with each other. Eligibility can be difficult for those who want to join a credit union. Some credit unions are much more open for membership, however. A popular one is the National Military Family Association which charges a $20 membership fee.
