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.

Best credit cards of 2023
author Curtis Arnold
Terms apply; see the online credit card application for full terms and conditions of offers and rewards.

20+ years

finding the best card for you

1,500+ cards

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5,000+ cardholders

polled about their cards

243 reviews

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List of Winners

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.

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CardName discontinued    Winner

EditorRating
 
foreign_fee AnnualFees
Why We Like It: PenFed has had a great reputation among cardholders for many years. Given the economic challenges currently facing consumers, it’s hard to beat cash rebates. The old saying "cash is king” certainly rings true with this card, which offers a flat 1.5% back (no tiers) on all purchases. However, if you become an Honors Advantage member by opening a qualifying free checking account or military service, you'll up that earning 2%.
Welcome Bonus
$100 statement credit Earn a $100 statement credit when you spend $1,500 in the first 90 days
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

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

EditorRating
 
foreign_fee AnnualFees
Why We Like It: New cardholders can earn a nice bonus when applying for the card, and on an ongoing basis, earn unlimited 2% cash back on all eligible purchases.
Welcome Bonus
$100 statement credit Earn a $100 statement credit after spending $1,000 in the first 90 days
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

CardName discontinued    Winner

EditorRating
 
foreign_fee AnnualFees
Why We Like It: Earn 1.5% cash back (flat rate, no tiers) on all purchases. You can earn an additional .25% rebate (for a total of 1.75% cash back) if you sign up for direct deposit and open a deposit account. (All information about this card has been collected independently by CardRatings and neither provided nor reviewed by the issuer.)
Welcome Bonus
$250 cash back Earn a $250 cash-back bonus when you spend $3,000 in the first 90 days.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

CardName discontinued    Winner

EditorRating
 
foreign_fee AnnualFees
Why We Like It: With gas prices creeping higher again, this card can really help slash your gas bill by offering 5X points on gas paid at the pump. Plus, if electric vehicles are more your thing, you'll like the 5x points offered at EV charging stations. The 5X earn rate is aggressive in the best way. In addition, you will also earn 3X points at the supermarket (including most Target and Walmart locations, which are often excluded in grocery rewards categories); restaurants; and on TV, radio, cable and streaming services.
Welcome Bonus
15,000 points Earn 15,000 points when you spend $1,500 in the first 90 days.
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

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

 
0% $0
Why We Like It: Earn 1.5x Arvest Flex Rewards points (flat rate, no tiers) for every $1 spent and redeem those points for cash back, statement credits, travel, gift cards, event tickets and more. Plus, this card offers some unusual additional perks of note.
Rewards
1.5 points/$1
Annual Fee
$0
Regular APR
17.99% - 24.99% (Variable)
Credit Score
Good/Excellent

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

CardName discontinued    Winner

EditorRating
 
foreign_fee AnnualFees
Why We Like It: This offer packs a powerful punch. For starters, you’ll get 50K bonus points when you spend $3K in the first 90 days. Plus, earn 4x points on all travel purchases if you are a PenFed Honors Advantage member (non-members earn 3X points) and 1.5x points on all other purchases
Welcome Bonus
50,000 points Earn 50,000 points after you spend $3,000 in the first 90 days
Annual Fee
AnnualFees
Regular APR
RegAPR
Credit Score
CreditScoreNeeded

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

First Tech Platinum Mastercard® (This card is not currently available on CardRatings)   Winner

 
0% $0
Why We Like It: Despite this credit union lacking national name recognition, it has a generous transfer offer of an intro 0% APR on balance transfers for 12 months (then 11.74% - 18% (Variable)). Perhaps the biggest appeal, though, is no balance transfer fee, which is a rarity these days.
Intro BT Offer
0% for 12 billing cycles 0% intro APR for 12 billing cycles on balance transfers made in the first 90 days (11.74% - 18% (Variable) after the intro period)
Regular APR
11.74% - 18% (Variable)
Annual Fee
$0
Credit Score
Fair, Good, Excellent

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

CardName discontinued    Winner

EditorRating
 
foreign_fee AnnualFees
Why We Like It: Simmons Bank has been known for many years for its low rate cards. This card, in particular, features an intro 0% APR for 12 billing cycles on transfers made in the first 60 days. (then RegAPR).
Intro BT Offer
0% for 12 billing cycles 0% intro APR for 12 billing cycles on balance transfers made in the first 60 days (RegAPR after the intro period)
Regular APR
RegAPR
Annual Fee
AnnualFees
Credit Score
CreditScoreNeeded

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

Navy Federal Platinum Credit Card (This card is not currently available on CardRatings)   Winner

 
None None
Why We Like It: It’s really hard to find low rate cards (that aren’t teaser rates) with all the rate increases in the past year, but Navy Federal is going against the flow with this card, which features an the opportunity for an impressively low ongoing rate depending on your creditworthiness.
Regular APR
8.24% - 18.00%
Intro BT Offer
0.99% for 12 months 0.99% intro APR for 12 months on balance transfers made in the first 60 days (8.24% - 18.00% after the intro period)
Annual Fee
None
Credit Score
Good/Excellent

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

Aven Card (This card is not currently available on CardRatings)   Winner

 
$0
Why We Like It: This new, unique new offer from Coastal Community Bank features an eye-popping rate in the single digits depending on your credit. However, even if you don’t qualify for that super-low rate, the highest rate you will get is still well below the national average.
Regular APR
7.99% - 14.99% (Variable)
Rewards
1.5% cash back
Annual Fee
$0
Credit Score
Good/Excellent

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

First Tech Platinum Secured Mastercard® (This card is not currently available on CardRatings)   Winner

 
$0
Why We Like It: It’s no secret that most secured cards have high rates. However, First Tech is bucking the trend by offering a purchase APR that dips lower than many non-secured cards offer. And, even if you don’t qualify for the lowest APR available, your rate will sill stay below that of many traditional cards.
Rewards
1 point per $1
Annual Fee
$0
Regular APR
13.75% - 18% (Fixed)
Credit Score
Poor/Limited

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.

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

Simmons Bank Foundation Visa® (This card is not currently available on CardRatings)   Winner

 
2% of each transaction, in US Dollars $0
Why We Like It: Simmons has historically catered to applicants with excellent credit, so we are delighted to see them offer a no-annual-fee secured card for people who are trying to establish or rebuild their credit. There are few secured cards that don’t have an annual fee, so kudos to Simmons for raising the bar.
Welcome Bonus
N/A
Annual Fee
$0
Regular APR
27.74% (Variable)
Credit Score
Poor/Limited

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).

We have not polled this card yet, but would love to hear your thoughts on it if you are a cardholder. Comment below or email us at editor@cardratings.com to share more about your experience.

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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.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.