CFPB data shows credit unions offer lower credit card rates 

Credit card survey data shows that credit unions and smaller banks offer lower interest rates than the 25 largest credit card companies, according to a CFPB report released Friday. 

“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,” said America’s Credit Unions President/CEO Jim Nussle. “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.”  

The bureau’s findings also showed: 

  • the difference in reported Purchase Annual Percentage Rate (APR) between the largest and small issuers translated to average savings of $400 to $500 a year for a consumer with an average balance of $5,000 using a small bank or credit union’s card; 
  • nearly half of the largest credit card issuers reported offering cards with a maximum purchase APR over 30%; and 
  • products offered by large issuers were three times as likely to include an annual fee than those at small institutions. The average size of annual fees for the largest issuers was approximately 70% higher than at small institutions. 

America’s Credit Unions’ data shows credit unions also 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. Additionally, the most important differences seen are within minority-majority communities, Black communities, and lower-income communities. These groups are nearly two times more likely to say they are “very positive” that their credit union has positively impacted their finanicial well-being.  

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