The next time you’re looking for a new credit card, it's worth doing a little research into credit unions and their various offerings. You can often find low interest rates, money-saving 0% APR periods and even industry-leading cash-back rates.
Credit unions often offer better terms because the financial institutions reinvest the profits they make from interest and account fees back into the products they offer, whereas traditional banks give their profits to shareholders.
In order to open a credit union credit card, you’ll first need to meet membership eligibility requirements. The eligibility requirements differ across credit unions, but can include where you live or work or affiliation with certain groups, such as labor unions or schools.
Many of the best credit unions — and those mentioned below — will also allow you to join if you donate a small fee to a participating organization. In some cases, the credit union will even pay that fee on your behalf, making membership free.
CNBC Select analyzed and compared credit cards offered by credit unions that are good for earning rewards, completing balance transfers and more. (See our methodology for more information on how we choose the best credit union credit cards.)
Best credit union credit cards
- Best for cash back: Alliant Cashback Visa® Signature Credit Card
- Best for rewards: PenFed Platinum Rewards Visa Signature® Card
- Best for balance transfers: Choice Rewards World Mastercard® from First Tech Federal Credit Union
- Best for military members: Visa Signature® Flagship Rewards Credit Card from Navy Federal Credit Union
Best for cash back
Alliant Cashback Visa® Signature Credit Card
Rewards
2.5% cash back on your first $10,000 of qualifying eligible purchases (1.5% for purchases over $10,000)
Welcome bonus
None
Annual fee
$0
Intro APR
None
Balance transfer fee
3%
Regular APR
17.49% to 27.49% variable
Foreign transaction fee
None
Credit needed
N/A
See our methodology, terms apply.
Pros
- 2.5% cash back on all purchases (up to $250 in cash back rewards per billing cycle)
- No annual fee
- Simple cash-back rewards
Cons
- No welcome bonus
- No special financing offers
Who's this for? The Alliant Cashback Visa® Signature Credit Card offers an industry-leading 2.5% cash back on your first $10,000 of qualifying eligible purchases (1.5% for purchases over $10,000). This is ideal for anyone looking for an easy-to-use cash-back card without the hassle of tracking bonus categories or activation.
This card doesn't have many bells and whistles, but there's no foreign transaction fees, which is uncommon with a cash-back card.
How to join Alliant: The easiest way to become an Alliant Credit Union member is by supporting Alliant's partner charity, Foster Care to Success. However, you don't need to pay the charity directly since Alliant pays $5 on your behalf when you apply to join the credit union.
Other options include:
- Employees and retirees of select organizations
- Relatives of existing Alliant members
- Members of select organizations
- Live or work in a qualifying community in Illinois
Best for rewards
PenFed Platinum Rewards Visa Signature® Card
Rewards
5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on supermarket purchases, 1X point on all other purchases
Welcome bonus
15,000 points when you spend $1,500 in the first 3 months from account opening
Annual fee
$0
Intro APR
0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening.*
Regular APR
17.99% variable on purchases; 17.99% non-variable on balance transfers
Balance transfer fee
3%
Foreign transaction fee
None
Credit needed
Good/Excellent
See our methodology, terms apply.
Pros
- High 5X points on gas at the pump and 3X on supermarket purchases
- No bonus category activations
- Good special financing offer on balance transfers
Cons
- 3% balance transfer fee
- Estimated rewards earned after 1 year: $513
- Estimated rewards earned after 5 years: $2,167
Rewards totals incorporate the points earned from the welcome bonus.
*0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.
Who's this for? If you frequently commute to work with your car or spend the weekends making day trips, the PenFed Platinum Rewards Visa Signature® Card can help you maximize rewards when refueling your car. This card offers a high 5X points for gas purchases at the pump, which is why it ranks as our best gas rewards card.
In addition to a great rewards rate on gas, you can earn 3X on supermarket purchases and 1X on all other purchases. Plus you can benefit from no annual fee and no foreign transaction fees.
How to join PenFed: Military affiliation is no longer required to have a PenFed membership. You can become a member by opening a PenFed savings/share account with a $5 deposit and maintaining a $5 account balance in order to keep your PenFed membership active.
Best for balance transfers
Choice Rewards World Mastercard®
Rewards
Earn 2X points on groceries, gas, electronics, medical, household goods and telecommunications, 1X points on all other purchases
Welcome bonus
Earn 20,000 points when you spend $3,000 in the first 60 days from account opening
Annual fee
$0
Intro APR
None
Regular APR
13.50% - 18.00% variable
Balance transfer fee
None
Foreign transaction fee
None
Credit needed
N/A
See our methodology, terms apply.
Pros
- No annual fee
- Good rewards program for everyday purchases
- No balance transfer fee
- No fee charged on purchases made outside the U.S.
Cons
- Estimated rewards earned after 1 year: $344
- Estimated rewards earned after 5 years: $1,720
Rewards totals incorporate the points earned from the welcome bonus
Who's this for? The Choice Rewards World Mastercard® from First Tech Federal Credit Union is a well-rounded card that has no annual fee, no foreign transaction fees, and a robust rewards program.
New card members can repay debt with a 13.50% - 18.00% variable APR and there's $0 balance transfer fee, saving you the typical 3% to 5% fee other balance transfer cards often charge.
The rewards program is geared toward everyday expenses, such as groceries and gas: earn 2X points on groceries, gas, electronics, medical, household goods and telecommunications, and 1X points on all other purchases. Plus, there's a welcome bonus of 20,000 points when you spend $3,000 in your first 60 days from account opening.
How to join First Tech: The easiest way to become a First Tech member is to join the Community History Museum (CHM) or Financial Fitness Association (FFA). The first year's membership fee for the CHM or FFA is paid by First Tech, and you can cancel the membership after opening an account with no impact on your First Tech membership.
Other ways to become a member include:
- Employee or retiree of partner company or the State of Oregon
- Work or live in Lane County, Oregon
- Student at Cogswell Poly Technical College
- Family or household relationship with a current member
- Member of a partner club or association
Best for military members
Who's this for? The Visa Signature® Flagship Rewards Credit Card from Navy Federal Credit Union is a strong offering for those with military affiliation. Cardholders enjoy a complimentary year of Amazon Prime, a reasonable 15.24% to 18.00% variable APR and great travel perks.
The card also offers account holders a credit worth up to $100 for Global Entry or TSA PreCheck applications every four years, plus no foreign transaction fees. Additionally, you can earn 3X points on travel and an above-average 2X points on everything else.
This card comes with a one-time annual fee waiver (after, $49 per year), but that pales in comparison to other travel cards from major banks that charge upwards of $95 — especially cards with Global Entry or TSA PreCheck credit.
NFCU credit cards even received the highest overall satisfaction score in J.D. Power's 2019 Credit Card Satisfaction Study, excelling in terms, benefits, services and rewards.
How to join Navy Federal: Military affiliation is required to join Navy Federal Credit Union.
Eligibility options include:
- Active duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard and Space Force
- Members of the Delayed Entry Program (DEP)
- Department of Defense (DoD) officer candidate/ROTC
- Veterans, retirees and annuitants
- DoD reservists, civilian employees, civilian retirees and annuitants
- U.S. Government employees and DoD contractors assigned to DoD installations
- Family and household members of the groups above
Our methodology
To determine which credit unions provide the best credit cards, Select analyzed the largest U.S. credit unions, according to data from DepositAccounts. We narrowed down our rankings by only considering credit unions that include the following features:
- Easy to join
- Available nationwide
- Offer online and mobile banking
- Ease of use and account accessibility
- Customer reviews, when available
Next, we compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.
Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.
Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.
Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.
While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.
