There’s more to CUA than its credit cards
Over the past 40 years, through a series of mergers and amalgamations of Australian credit unions a substantial financial organisation emerged that is solely run for its members. That organisation is now known as CUA (formerly Credit Unions of Australia). With more than 380,000 members and operations extending across all States, CUA is Australia’s largest credit union.
A credit union does not have shareholders and it is not on the Stock Exchange so it’s not driven to maximizing profits. A credit union is owned by members and it run for the benefit of its members. Operating profits are reinvested in the services and support it provides for its members. This structure enables CUA to offer very competitive services, fees and charges.
If you wish to invest, borrow or use CUA’s credit card facilities, you simply apply to become a member, pay (in the case of CUA), a $10 membership fee, and you immediately have equal rights in voting and say in the affairs of the organization. Membership also opens up a whole range of members-only services. Some of those services include investments, housing and other loans, credit cards, travel and insurance and financial planning.
CUA has three types of credit cards – a ‘Low Rate MasterCard’ and a’ Rewards MasterCard’ with both cards available in two flavours – ‘Silver’ and ‘Gold’, plus a ‘Card Services MasterCard. This article discusses the first two card types.
Like all the other issuers of MasterCard, CUA’s MasterCards offer up to 55 days interest-free on all retail purchases where there is no carry-forward prior period balance
CUA Low- Rate MasterCard.
Interest rate is currently 11.85% per annum on all purchases and cash advances. 11.85% per annum interest on carry-forward balances of purchases is one of the lowest rates around. The rate for cash advances is on average 8% less than many of its competitors. A special interest rate of 4.9% applies to balance transfers for six months. The annual fee on this card is just $35.
Overall, a Low-Rate MasterCard from CUA could save hundreds of dollars a year compared with many other institutions cards.
Additional benefits for a Gold Card include free international travel insurance, free accident cover and emergency travel assistance. The maximum credit limit on the Gold Low-Rate MasterCard is $25,000 versus $7,000 with the Silver card. The annual card fee for a Low-Rate Gold Card is $75.
CUE Rewards MasterCard.
The CUA ‘Rewards MasterCard’ operates in a similar fashion to other ‘Rewards-oriented’ cards. You pay a higher interest rate (17.99% per annum) and annual fee – $45 for a Silver Rewards Card and $40 more for a Gold card.
Rewards are calculated at one point per $1 spent. Points can be used to reduce your outstanding balance or pay your annual fee. They can also be applied to fly on any airline, on hotels, hire cars and other travel. Shopping vouchers are accepted at Australia’s major retail chains and can be used to purchase electronic, electrical and white goods. The Gold rewards card can transfer their Card Services rewards points to Velocity points run by the Virgin group.
CUA is a somewhat ‘left field’ credit card issuer. It might be worth your while to have a look at the full range of services available through CUA – not just their credit cards – you could be in for a pleasant surprise! For more information on how the CUA credit card stacks up against other major lenders throughout Australia, continue to browse through the Credit Card Application website and compare your offers till you feel confident you have the right card to suit your budget.