Toward the end of 2010, many traditional financial institutions announced new fees on credit cards as a means of raising revenue from their services. As a result, many Americans resolved to move to other alternatives such as debit.
However, lenders have recently announced planned increases on these services as well. This includes implementing minimum balance and monthly use requirements.
However, a new report suggests credit unions may provide a money-saving alternative, offering consumers lower fees and competitive rates. In recent Datatrac analysis, researchers found that credit unions typically offer lower average APRs on their credit cards than banks, Forbes reports.
In addition, the average credit union late payment fee was only $10 to $20. By comparison, the average credit card lender charged as much as $35 for even a minor delinquency, according to the news source.
Due to this price differential, consumers could benefit by switching their primary financial institution to a credit union, though many already have. Recent studies have found that enrollment in credit unions began to rise at the end of 2010, as many looked to save money on financial services.