The cost of that service comes either in the form of interest (if we don’t pay off the balance before interest starts accruing), or in fees, such as annual fees. Credit card providers are providing us with a service by giving us access to credit. It’s there to pay for stuff, and we either pay it back straight away, or further down the track.īut, that credit card is providing a service. Most people take their credit card for granted. To answer that, we need to think about what a credit card actually is. As we said, member-owned financial providers such as Credit Union can often offer much lower rates of interest on financial products such as credit cards. So, then, what do these cards have to offer? Low Rate Credit CardsĪll three cards – the Community First Low Rate Visa Card, the Community First Low Rate Pink Visa Credit Card and the Community First Low Rate Blue Credit Card - have a super low rate of interest. Community First currently has three credit cards on the table – the Community First Low Rate Visa Card, Community First Low Rate Pink Visa Credit Card and the Community First Low Rate Blue Credit Card. Now that’s covered, it’s time to look at what Community First has to offer in the way of credit cards. That means, in the event of financial difficulty, Community First would still have around $21 million to distribute to its members after paying off all its debts. Community First has a strong capital position, currently standing at around 14.9%, compared to Australian banks sitting at around 10%.Ĭommunity First also has more than $21 million in reserves. In banking, strength is paramount – and that means having sufficient capital to act as a buffer in times of trouble. Just like people who use banks, Community First members are eligible for the Australian Government Deposit Guarantee. That means it is regulated by the Australian Prudential Regulation Authority (APRA) under the Banking Act, and must meet the same high standards as banks. Safe and SecureĬommunity First is an Authorised Deposit-taking Institution (ADI). If we place our hard-earned savings in the safe-keeping of an institution, we need to be able to trust that institution. If we take out a credit card, we want to know we can count on our provider. If we take out a mortgage, we want to be able to rely on our lender. But – and this is a big but – are member owned financial providers safe? Member-owned institutions also pride themselves on offering superior service to their members – something many members feel they cannot get from bigger, faceless banks. That means it can often offer lower rates and fees on products such as credit cards and loans. An institution such as Community First is simply run for the benefit of its members. They are businesses, with shareholders to please.Īs a mutual organisation, member-owned institutions are not required to make large profits to pay out dividends to shareholders. Many financial providers - like the big banks - are not member-owned.
What is a member-owned financial provider exactly? As the name suggests, this is a financial provider that is owned by its members – by the people who use its financial products. You never know, it might just be time to make that jump from the big banks, to something a little bit different.
Offering everything from bank accounts and loans, to insurance and credit cards, Community First seems to have banking covered.īut is Community First right for you? Let’s take a look at what it means to bank with a member-owned financial provider – and what Community First has to offer in the way of credit cards. Having been around for more than sixty years, Community First now has more than 55,000 members. In fact, there are around 4.5 million Aussies who choose to bank with building societies and credit unions – like Community First.