One of Tigers Credit Union's missions is to improve the financial well being of our membership by providing you with affordable credit for productive purposes. We believe that credit cards (if used wisely) can help compliment other forms of credit and help us achieve our goal. In offering you with access to our credit card we would like to educate you and make you aware of some of the dangers of credit cards and some of the pitfalls users can face.

For Extra Security enroll in:


Some of the highlights that make our credit card program different than all others:

• Starting this in mid July 2007 our members that use their TCU credit card start earning 1 point for every $1 they spend. These points can be redeemed for rewards at www.curewards.com . Max 5000 points per month, 75000 per year, per member.
  
• When you apply and receive your credit card you can visit our lobby and pick up, FREE OF CHARGE,  the "Credit Booster". The "Credit Booster" is a comprehensive book on credit, credit reports, credit scores, debt management, and other subjects affecting your financial health and your ability to achieve lifestyle goals. The book follows a step-by-step process designed to enhance the understanding of issues relating to credit while presenting tools and skills credit users can use to improve their financial health. These books are published by InCharge® Education Foundation; the foundation offers an extensive array of educational and counseling tools focused on guiding major sectors of the American public toward financial health.
• If you apply and qualify for our credit card and  attend a counseling session with the Office for Financial Success we will extend a 0%APR balance transfer offer with no balance transfer fee for 6 months!
• Use your card abroad and your will be charged only a 1% fee, (most credit card companies will charge you any where from 2% to 4%).
  

Some advice on credit cards in general:

2. PENALTY RATES. Avoid being late! More and more companies are becoming less forgiving of late payments. 

3. INTRO OFFERS. When signing up for an intro offer (the lure) make sure to know what the card's terms are once the intro period expires.

4. USING A CARD WHERE YOU'VE TRANSFERRED A BALANCE. If taking advantage of a intro rate or balance transfer "special" be certain not to use the card for other purchases – your payments don't go to your higher rate purchases, the payment will go to the 'special rate' portion of the balance.

5. CONVENIENCE CHECKS. These are awfully enticing – the checks often come made out to you and advertise that you can use them for anything. The catch? Most charge cash advance rates and an average transaction fee of 3% of your check amount. You normally will lose your grace period (even if you pay in full at the end of the month). Not a great deal in most instances.

7. "YOU'RE PRE-APPROVED". This 'announcement' makes many feel warm and fuzzy. The reality? All this means is that the company has reviewed your credit report and won't reject your application based on that information. If you apply for the card, you can still be turned down because of insufficient income or other reasons that won't be reflected within your credit report.

8. BAIT AND SWITCH. I've got a credit card that I use to obtain benefits – cash back on gas and other purchases, etc. If someone else were to apply for that card (or any other credit card requiring someone to have excellent or well established credit), instead of being turned down, on the application, there will be a statement where you are essentially giving permission to the CC company to give you their 'base' card if you are turned down for the card in which you are applying.

10. NO MISSED PAYMENT PENALTY RATE. The idea of an interest rate going up because of missed payments is rational. More and more "savvy" consumers in past years have taken advantage of 0% balance transfers, intro offers, and other "deals." What many consumers saw as a loophole is now beginning to be closed by CC companies. Smart Money magazine wrote of an individual with what most would consider near perfect credit (790 credit score) – never missed a payment, never over the limit … He carried $8,000 on a credit card because he was taking advantage of the 0% rate for life offer. It was obviously quite a shock to open his statement and see a rate of 29.99%! Apparently, his card company viewed him as a higher credit risk because of his debt and thus, according to the card agreement, had the right to bump him to the 'default rate' … Normally, default rates are triggered by missed payments, but apparently, high balances can also trigger a default rate [due to higher risk on the part of the company]. A 2005 study by Consumer Action found that 90% of card issuers would use a universal default rate hike if a customer's credit score decreases, 86% would do so if they paid a mortgage or any other loan late. Nearly half (43%) would hit you with universal default if they decide you have too much debt, while 33% would do it for the exact opposite reason: too much credit available. You can see a rate hike even if all you do is get a new credit card (33%) or shop around for a car loan or mortgage (24%).

THE BOTTOME LINE IS: BE CAREFUL.

Other resources:

(click on our logo to go to the main page from any other)