Credit union credit cards

What's the difference between a credit union and a bank?

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.

What kind of credit union credit cards are available?

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.

What about building societies, mutual banks and member-owned banks?

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.

Should I get a credit card from a credit union or a bank?

The bottom line

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.

How to compare credit union credit cards

• Interest rates. Credit union credit cards tend to have lower standard purchase rates than bank options. Some credit union cards also apply the same interest rate to both purchases and cash advances (rather than having a separate and higher cash advance rate).
• Balance transfers. Some credit union credit cards don’t offer balance transfers. The cards that do provide this service are less likely to have a 0% interest rate during the introductory period when compared to cards from banks.
• Annual fees. Most credit union credit cards have low annual fees (i.e. under $100) and some don’t charge an annual fee. Some credit cards also have low or $0 annual fees, so you need to weigh up whether the features of the card justify these costs.
• Rewards. Credit unions offer fewer rewards credit cards than banks. There are still a few options that offer points for purchases made on the account, though, including some cards that are linked to frequent flyer programs.
• Complimentary extras. In general, only gold or platinum credit union credit cards will offer complimentary extras such as travel insurance or concierge services.
• Branch access. Credit unions may have a more limited branch network when compared to larger financial institutions. Before you apply for a credit card from a credit union, you should check out the existing branch network and other access options to decide if it will work for you.

Frequently asked questions

• Can I apply for a credit union credit card online?

  This depends on the credit union you wish to deal with, and you can find a number of credit unions that accept online applications for credit cards.

• What eligibility criteria would I have to meet to apply for a credit union credit card?

  The eligibility criteria for credit cards can vary, but generally includes the following:

  • You must be at least 18 years of age to apply for a credit card in Australia
  • You must be a citizen or permanent resident of Australia
  • You must have a good credit history
  • You must meet the membership requirements of the credit union

  For specific information on application requirements, refer to the product page of any credit union credit card you’re interested in. You may also want to visit a specific credit union’s website for more details.

• Is there a credit union in Australia with branches in all states and territories?

  Most credit unions have small branch networks in comparison to banks. But some may allow you to bank in partner branches, or offer other services. Refer to individual credit union websites for details of their branch networks and access options.

• Are credit unions regulated in the same way as banks?

  Yes, both credit unions and building societies are accountable under the same regulations and laws as banks in Australia. All credit unions must have an Australian Financial Services Licence (AFSL) to be able to provide financial services and products. The Australian Prudential Regulation Authority (APRA) monitors the functioning of both credit unions and banks.

Written by

Richard Whitten

Money Editor

Richard Whitten is Finder’s Money Editor, with over seven years of experience in home loans, property and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Graduate Certificate in Communications from Deakin University. See full bio

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Richard has written 594 Finder guides across topics including:

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