Best Small Bank and Credit Union Credit Cards of May 2023
Cash back, bonuses and the personal attention and customer service you might not get from large banks. CardRatings editors compare the best small bank and credit union credit cards.
Curtis Arnold
Last Updated:
20+ years
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1,500+ cards
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5,000+ cardholders
polled about their cards
243 reviews
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List of Winners
- CardName – Best credit union cash-back card
- CardName – Best regional bank cash-back card
- CardName – Honorable mention cash-back card
- CardName – Best credit union card for general rewards
- Arvest Flex Rewards™ Visa Signature® – Best regional bank card for general rewards
- CardName – Best credit union card for travel rewards
- First Tech Platinum Mastercard® – Best credit union balance transfer card
- CardName – Best regional bank balance transfer card
- Navy Federal Platinum Credit Card – Best credit union card for low ongoing APR
- Aven Card – Best regional bank for low ongoing APR
- First Tech Platinum Secured Mastercard® – Best credit union card for building/rebuilding credit
- Simmons Bank Foundation Visa® – Best regional bank card for building/rebuilding creditl
There’s no shortage of big banks out there that hire celebrities to sing the praises of flashy credit cards loaded with perks and features. But what if you prefer banks that are smaller, more personal and less flashy (but still offer cards loaded with perks and features)? In that case, it’s time to look at credit unions and smaller regional banks when you start researching your next credit card.
Here’s the thing: These cards from credit unions and small banks don’t get the same press or buzz that cards from larger issuers do but, in many cases, they offer rewards and perks that are similar or even better. Plus, you get the benefit of more personalized customer service, easier access and, if this is your thing, the knowledge that you’re supporting a small organization rather than a Main Street giant.
CardName discontinued Winner
Bonus: Earn $100 bonus statement credit when you spend $1,500 in the first 90 days.
Annual Fee: AnnualFees
Rewards Rate: Earn an easy-to-understand 1.5% cash back on all your purchases. You can up that to 2% on all your purchases by becoming a PenFed Honors Advantage member
Credit Needed: CreditScoreNeeded
PROS:
- No annual fees or foreign transaction fees.
- Earn as much as 2% cash back on all your purchases (subject to becoming a PenFed Honors Advantage member).
- Among the various military-focused credit unions out there, Pentagon Federal Credit Union is among the simplest for everyone to join.
CONS:
- If you don't have military services, you have to open a checking account and maintain a minimum $500 daily balance or set up monthly direct deposits of $500 or more to qualify for the maximum 2% rebate.
Read our full CardName.
| Current Scores | Past Scores | |
|---|---|---|
| Overall Score | 84.8 | 67.3 |
| Rewards Program Satisfaction | 8.6 | 6.8 |
| Customer Service | 8.7 | 6.8 |
| Website/App Usability | 8.6 | 6.8 |
| Likelihood of Continuing to Use | 8.3 | 6.8 |
| Recommend to a Friend/Colleague | 8.2 | 6.5 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
CardName discontinued Winner
The Bonus: Earn $100 cash back in the form of a statement credit when you spend $1,000 within the first 90 days after account opening
The Annual Fee: AnnualFees
The Rewards: Earn unlimited 2% cash back on all eligible purchases.
Credit Needed: CreditScoreNeeded
PROS:
- Earn unlimited cash rewards – no rotating categories, no caps or limits on how much you can earn on an annual basis.
- With no annual fee and up to 2% cash back on your purchases, this value prop for this card is quite high.
- Intro 0% APR on balance transfers for 15 billing cycles after account opening (then, RegAPR). Balance transfer fee applies: BalanceTransferFees.
CONS:
- This card charges foreign transaction fees.
- You have to open an eligible checking or savings account to earn the maximum 2% cash back.
CardName discontinued Winner
The Bonus: Earn a $250 bonus cash back when you spend at least $3,000 in the first 90 days of account opening.
The Annual Fee: AnnualFees
The Rewards: Cardholders earn 1.5% cash back on all purchases; however, you can up that percentage to 1.75% on all purchases if you open a desposit account and sign up for direct deposit.
Credit Needed: CreditScoreNeeded
PROS:
- There's no annual fee or foreign transaction fees to worry about.
- While it doesn't offer a special balance transfer intro APR, it also doesn't charge balance transfer fees and the ongoing APR is lower than many similar cards in the market right now.
- Save with Collision Damage Waiver coverage when rent a car using your card. (terms apply)
CONS:
- Navy Federal Credit Union membership is restricted to military members and veterans, their families and civilian Department of Defense employees. In other words, most people won't qualify.
- There are flat-rate cash-back cards out there (see cards above) that offer more than the possible 1.75% here. In fact, 2% cash-back cards aren't terribly uncommon.
CardName discontinued Winner
The Bonus: Earn 15,000 bonus points when you spend $1,500 in the first 90 days of account opening.
The Annual Fee: AnnualFees
The Rewards: Earn 5X miles on gas paid at the pump and at EV charging stations; 3x points at supermarkets (including most Target and Walmart locations); restaurants; and on tv, radio, cable and streaming services; 1x point per $1 spent on other purchases.
Credit Needed: CreditScoreNeeded
PROS:
- No foreign transaction fees means, you won’t be charged extra fees when you use your card outside of the U.S. or to make purchases in a foreign currency.
- There are several redemption options when you get ready to cash your points in, including over 300 gift card brands to choose from.
- Take advantage of an intro 0% APR for 12 months on balance transfers made in the first 90 days of account opening. After the intro period, the APR becomes a non-variable RegAPR. A BalanceTransferFees.
CONS:
- While there are lots of redemption options, cash and statement credit aren't among them. There is no option to redeem your points for cash.
- The base rewards earning of 1 point per $1 isn't great, so make sure you can truly maximize the other earning tiers.
Read our full CardName.
| Current Scores | Past Scores | |
|---|---|---|
| Overall Score | 75.3 | 71.5 |
| Rewards Program Satisfaction | 7.5 | 7.0 |
| Customer Service | 7.7 | 7.2 |
| Website/App Usability | 7.2 | 7.3 |
| Likelihood of Continuing to Use | 7.8 | 7.4 |
| Recommend to a Friend/Colleague | 7.5 | 7.2 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
Arvest Flex Rewards™ Visa Signature® (This card is not currently available on CardRatings) Winner
The Bonus: There's no bonus available with this card, but there is a nice intro APR offer: 0% APR on purchases and balance transfers for the first 12 months. After that, an APR of 17.99% - 24.99% (Variable).
The Annual Fee: $0
The Rewards: Earn 1.5 points per $1 spent on all your purchases, redeemable for cash back, statement credit, travel, gift cards and more.
Credit Needed: Good/Excellent
PROS:
- Cardholders enjoy up to $100 credit for a Global Entry or TSA PreCheck application fee, a highly unusual benefit for a no-annual-fee card.
- Sticking with the travel theme, this card doesn't charge foreign transaction fees.
- Luxury travel and extras such as 24/7 complimentary concierge services to help with reservations, ordering gifts, etc.
CONS:
- Earning 1.5 points per $1 isn't bad, but it's not great. There are higher earning rewards cards out there, espcially if you're primarily interested in travel rewards.
CardName discontinued Winner
The Bonus: Earn 50,000 bonus points when you spend $3,000 in the first 90 days of account opening.
The Annual Fee: AnnualFees
The Rewards: PenFed Honors Advantage members earn 4X points on travel, while non-members earn 3x points on those purchases. All cardholders earn 1.5x points on all other purchases.
Credit Needed: CreditScoreNeeded
PROS:
- The annual fee is waived for existing PenFed Honors Advantage members.
- Enjoy access to airport lounges worldwide with a complimentary Priority Pass Select memberhsip.
- Save with a $100 annual domestic air travel reimbursement as well as up to $100 for your Global Entry or TSA PreCheck application fee.
CONS:
- To qualify to be an Honors Advantage member, you must either have and maintain a PenFed checking account or the primary applicant must have military ties (active duty, reserve, honorably discharged or retired).
Read our full CardName.
First Tech Platinum Mastercard® (This card is not currently available on CardRatings) Winner
Balance Transfer Details: Take advantage of an intro 12 billing cycles 0% APR on balance transfers made within the first 90 days. After the intro period, the APR goes to 11.74% - 18% (Variable).
The Annual Fee: $0
The Rewards: This isn't a rewards card, but rather one geared toward saving with that intro balance transfer offer.
Credit Needed: Fair, Good, Excellent
PROS:
- At 11.74% - 18% (Variable), the ongoing APR is lower than the national average.
- No balance transfer fees (or cash advance fees for that matter) mean you won't be paying fees that are typical with most cards.
- There also aren't any foreign transaction fees to worry about with this card.
CONS:
- Unless you or a family member work for a select group of companies, for the state of Oregon, or work or live in Lane County, Ore., you must join the Computer History Museum or the Financial Fitness Association in order to qualify for membership in the credit union and have eligibility to apply for the card.
CardName discontinued Winner
Balance Transfer Details: An intro 12 billing cycles 0% APR on balance transfers made within the first 60 days. After the intro period, the APR goes to RegAPR.
The Annual Fee: AnnualFees
The Rewards: Once again, this isn't a rewards card, it does offer the "reward" of a low rate and solid intro balance transfer opportunity.
Credit Needed: CreditScoreNeeded
PROS:
- While this card does charge a 3% transfer fee within the first 60 days, the fee is waived after 60 days (a rarity).
- The ongoing purchase APR is RegAPR, the bottom end of which is significantly lower than the national average.
CONS:
- Residents of New York and California aren't eligible.
- Simmons Bank is known for requiring card applicants to have superb credit.
Navy Federal Platinum Credit Card (This card is not currently available on CardRatings) Winner
Ongoing APR: 8.24% - 18.00%. This, even at the high end, is still quite a low APR. If your creditworthiness qualifies you for the low end of the APR, you'll be in especially good shape.
The Annual Fee: None
The Rewards: There aren't rewards offered with this card, but the low ongoing rate could be all you really need.
Credit Needed: Good/Excellent
PROS:
- Take advantage of an intro 0.99% APR for 12 months from account opening on balance transfers made within your first 60 days. After the intro, the APR becomes 8.24% - 18.00%.
- In addition to a solid intro balance transfer offer, you'll save more because this card doesn't charge balance transfer fees.
- Existing Navy Federal Credit Union members can check whether the qualify for the card without a hard credit pull and no impact on your credit.
CONS:
- The balance transfer offer is good – and the no transfer fee is great – but there are cards out there with longer intro periods.
- This isn't a rewards card, so it's not a top recommendation for your everyday card.
Aven Card (This card is not currently available on CardRatings) Winner
Ongoing APR: 7.99% - 14.99% (Variable). This range is exceptionally low, even if your credit lands you at the upper end of the range.
The Annual Fee: $0
The Rewards: Earn unlimited 1.5% cash back. It accumulates as reward points that you can redeem for statement credit.
Credit Needed: Good/Excellent
PROS:
- Rewards cards typically come with higher-than-average APRs, but this card offers both rewards AND a low ongoing APR.
- Your home's equity is used to secure your credit line, so credit lines for this card can go up to $250,000, much more than a typical credit card.
- You can check your offer – as in what kind of credit line you'd qualify for based on your home's equity and more – without a hard credit pull.
CONS:
- Because your home's equity is part of the approval equation, you need to own and have equity in your home to qualify.
- Your home’s equity is used to secure the credit line, which means that if you fail behind on payments, you could possibly risk losing your house.
Read our full Aven Card review.
First Tech Platinum Secured Mastercard® (This card is not currently available on CardRatings) Winner
Security Deposit: Minimum $500 refundable deposit required to establish your line of credit. Credit lines go as high as $25,000 with a qualifying security deposit.
The Annual Fee: $0
The Rewards: Earn one point for every $1 spent. Redeem your points for travel, gift cards and more.
Credit Needed: Poor/Limited
PROS:
- No annual fee isn't common among secured cards.
- Likewise, most secured cards don't allow you to earn rewards like this one does.
- The possibility of a high credit limit isn't common with secured cards.
CONS:
- The minimum security deposit is $500, which could be a barrier. There are secured cards available with much lower minimum deposit requirements ($200 is a common amount).
- Membership in this credit union is limited, so most people won't qualify without paying to join a qualifying organization.
Simmons Bank Foundation Visa® (This card is not currently available on CardRatings) Winner
Security Deposit: Minimum $300 refundable deposit required to establish your line of credit. The maximum credit limit is $5,000 (with associated security deposit).
The Annual Fee: $0
The Rewards: There aren't rewards offered, but there are some nice extra benefits – such as car rental coverage and travel coverage – that aren't always included on secured cards.
Credit Needed: Poor/Limited
PROS:
- Credit lines from $300 minimum to $5,000 maximum (your credit line will be the same as your security deposit).
- Your security deposit will be held in an interest-bearing Foundation Secured Savings Account so you'll earn some money on your deposit.
- Get up to $1 million in travel accident insurance at no additional cost.
CONS:
- This isn't a card on which you want to carry a balance. The APR is high at 27.74% (Variable).
Survey Methodology: CardRatings commissioned Op4G in September and October 2022 to conduct surveys among 1,554 cardholders nationwide. CardRatings website analytics from Jan. 1, 2022-Aug. 31, 2022 were used to determine a selection of the most popular cards and additional cards were included to add survey breadth. Responses to each of nine questions were given on a scale of 1-10 and respondents’ scores were then averaged under broad topics. To determine the overall score, responses from questions 1-8 were summed and the answer to “How likely are you to recommend this card to a friend, coworker or family member?” was double weighted. “Current Scores” reflect scores from the most recent survey (2022); “Past Scores” reflect scores from the 2021 survey.
Ranking Methodology: CardRatings experts review the fine print, details, perks, rewards and features of hundreds of cards and compare them side-by-side with similar cards. A card that makes an excellent balance transfer card may not make a great cash-back rewards card even though it offers those rewards. While the Best of the Year list is announced annually, that list – and all other “best of” lists on CardRatings – are regularly reviewed and updated as issuers change the terms and features of each card often.
Disclaimer:
The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
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