Getting a high-limit credit card from a credit union with fair credit is not difficult if you know what you’re doing.
Just make sure you understand the credit card’s requirements and choose the right card, depending on your needs—cash back, rewards, travel perks, 0% balance transfer, etc.
The thing with credit union credit cards—and loans and lines of credit, for that matter—is that you first need to qualify for membership.
So, quick question: Are you looking for a credit card from a national or local credit union? The geography that the credit union covers may be important when it comes to membership eligibility.
This article sheds light on everything you need to know, and once you read it all, you’ll certainly understand all there is to know about credit cards at credit unions.
To get a high-limit credit union credit card with fair credit:
1. Check Your Credit Score
2. Make Sure You Indeed Have Fair Credit
3. Dispute Any Errors on Your Credit Report
4. Identify a Credit Union You Can Qualify For
5. Make Sure You Meet Eligibility Requirements
6. Open a Checking and/or Savings Account
7. Familiarize Yourself With the Credit Card’s Requirements
8. See if You Can Prequalify With a Soft Pull
9. Apply
10. Have a Plan in Case You’re Denied
Ready? Let’s dive right in.
1. Check Your Credit Score
To get a high-limit credit union credit card with fair credit, check your credit score.
That way, you make sure everything is accurate, but also get a chance to spot any inaccuracies or derogatory items. Gosh, those adverse items have a negative impact on your credit, so make sure you nip them in the bud.
It’s better you catch them early than later on.
To check your FICO score, go on AnnualCreditReport.com or sign up with free FICO score providers like Credit Karma, NerdWallet and WalletHub.
Your current credit card issuer may also provide free access to your credit report and score.
2. Make Sure You Indeed Have Fair Credit
To obtain a high-limit credit union credit card with fair credit, make sure you indeed have fair credit.
Who knows? Maybe you have good or excellent credit—or worse, less-than-stellar credit.
If you don’t check your credit, how can you tell your score, right?
Bottom line: Check your credit report and make sure everything is not only accurate, but the FICO score is the correct one.
3. Dispute Any Errors on Your Credit Report
To secure a high-limit credit union credit card with fair credit, dispute any errors on your credit report.
Mistakes can be easily fixable things like wrong address and birth date—or more problematic items like a credit card someone opened in your name because the identity thief stole your good name or Social Security number.
To dispute errors on your credit report, contact credit bureaus—Equifax, Experian and TransUnion—and/or the “data furnisher” (that is, the institution that provided the data to credit bureaus in the first place).
4. Identify a Credit Union You Can Qualify For
To get a high-limit credit union credit card with fair credit, identify a credit union you can qualify for.
Find out what kind of credit union you want: national, local, profession-based, biology-driven, etc.
Start first with your family and location, and see credit unions that fit what you need in terms of banking and credit—and most importantly, credit unions whose eligibility requirements you meet.
Consider national credit unions like PenFed, Connexus and Consumers Credit Union because they have no restriction on membership.
5. Make Sure You Meet Eligibility Requirements
To obtain a high-limit credit union card with fair credit, make sure you meet eligibility requirements.
Generally, membership eligibility criteria for a credit union are pretty straightforward. You can qualify through your relatives, profession, religion, location or social affiliation—or by donating to a charity the credit union sponsors.
Check every criterion to make sure you qualify for membership.
6. Open a Checking and/or Savings Account
To secure a high-limit credit card from a credit union with fair credit, open a checking and/ or savings account.
Opening an account at the credit union helps you build a relationship, right off the bat—which is a good thing, especially later on when you need a credit card or loan.
Besides a checking or savings account, you can also open a certificate of deposit, money market account or IRA (individual retirement account).
The whole idea is to build a strong rapport with the institution from the beginning.
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7. Familiarize Yourself With the Credit Card's Requirements
To get a high-limit credit union credit card with fair credit, familiarize yourself with the credit card’s requirements.
Zero in on a credit card the credit union offers and that you can qualify for.
How do you know if you can qualify? Well, for starters, read the card’s criteria on the institution’s website. Second, call them up and ask. Or just go to a branch.
The credit card requirements include things like income, credit score, employment seniority, net worth, etc.
Make sure you meet those criteria before applying to a specific credit card.
8. See if You Can Prequalify With a Soft Pull
To secure a high-limit credit union credit card with fair credit, see if you can prequalify with a soft pull.
A soft pull means your credit score remains intact—unlike a hard pull, which chips 5-10 points away at your FICO score. A soft inquiry is cool because you can just “test the waters” what limit you could qualify for if you were to apply.
A credit card prequalification doesn’t guarantee, but at least you have an idea of your approval odds.
See if you can prequalify online, over the phone or at the branch.
9. Apply
To get a high-limit credit union credit card with fair credit, apply properly.
You can apply online, on the phone or at a branch. If you can make it to the branch, do it.
Otherwise, apply remotely. Make sure you fill out the application form properly, paying attention to things like income, Social Security number and employer. Other information includes your monthly expenses and debt payments.
Some credit unions allow you also to add an authorized user to your credit card—as well as doing balance transfers.
See what works for you.
10. Have a Plan in Case You’re Denied
To secure a high-limit credit union credit card with fair credit, have a contingency plan in case you are denied.
Normally, the credit union tells you in a rejection letter why the institution is declining your application. Study the content of that letter carefully and fix whatever caused the adverse decision in the first place.
Is it a bad credit score or too many inquiries? Do you have, say, collection accounts that are dragging your FICO score down?
Again, whatever the reason, there’s no need to panic here—or stress about the whole situation. Going forward, direct all you energy towards remedying the denial elements.
Keep in mind you can also call a reconsideration line at the credit union in case you believe the adverse decision is a mistake—and you’d like the institution to “reconsider” your application.
Everything is possible.
Recap
Getting a high-limit credit union credit card with fair credit is not a tall order if you do it right. Make sure you check your credit score to confirm that you indeed have fair credit.
Dispute any errors on your credit report and identify a credit union whose membership you can qualify for.
Open (at least) a checking and/or savings account so you can start building a solid relationship with the credit union.
Familiarize yourself with the credit union’s specific credit card requirements and see if you can prequalify with a soft pull.
Finally, apply for the credit card and have a contingency plan in case the institution rejects your application.
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