STATEMENT on CFPB report on credit card interest rates
“The CFPB’s new report on the credit card market clearly shows the credit union difference: Credit unions offer more affordable credit solutions to Americans than the largest issuers. With better rates and lower annual fees on average, consumers can more easily achieve their best financial lives when they partner with a credit union. This report highlights the importance of allowing credit unions to serve all Americans because big banks clearly aren’t. We will continue to fight for field of membership reforms and other policy improvements to ensure consumers’ access to credit unions and their superior offerings.” – Jim Nussle, President/CEO America’s Credit Unions
Background:
- Equifax data reflect far lower delinquency rates at credit unions – especially among consumers with lower credit scores.
- Data show this is also true with auto finance and mortgage markets.
- This is a clear indicator that there is higher financial resilience among credit union members.
- America’s Credit Unions’ Consumer survey shows lower-income consumers who use credit unions are nearly two times more likely to say they are “very positive” that their credit union has positively impacted their financial well-being.
- The pro-consumer difference we see at credit unions are most pronounced for those with lower credit scores.
The most important differences we see are within minority-majority communities, Black communities, and lower-income communities. - This evidence proves credit unions are mission focused and delivers massive benefits to those who need them most.
- America’s Credit Unions’ data show credit unions save consumers with lower credit scores up to $10,000 over the life of a car loan and as much as $50,000 over the life of a home loan.