Union Bank

Author: Kaitlyn Short

MUFG Union Bank is a financial institution offering a wide range of products and services to customers throughout the United States. The company was founded as The Bank of California in 1864 in San Francisco, California. Union Bank currently has over $120 billion in assets and is currently headquartered in New York City, New York. Union Bank offers multiple credit card options for consumers with different rates and rewards. Additional services include online account banking, lending options, insurance, and investment products.

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The Good

• Multiple credit card options
• Benefits and features
• Online and mobile banking services

Multiple Credit Card Options

Union Bank offers three main credit card options with various benefits and features for customers to choose from. The Union Bank Rewards Visa credit card offers 2,500 points on a cardholder's first eligible purchase with no annual fee and offers two points for every dollar spent on grocery purchases and one point for everything else. Additional bonuses from 25 to 50 percent can be earned for reward points deposited in a personal banking account or towards a mortgage principal reduction payment. The Union Bank Visa card with no annual fee is designed for individuals seeking lower interest rates. The Union Bank Secured Visa is designed to assist consumers that seek to build a good credit history.

Benefits and Features

All Union Bank credit cards feature EMV chip security, supplemental cell phone protection, and 24/7 online account access. Cardholders will also receive a free FICO credit score with their monthly billing statements. The Union Bank Visa credit card and the Union Bank Rewards Visa credit card features a zero percent introductory APR for the first 12 billing cycles. This card is most suitable for individuals who need to consolidate moderate amounts of debt that can be paid off in full within that amount of time.

Online and Mobile Banking

The financial services company provides cardholders access to security guaranteed online and mobile banking services. Cardholders can schedule automatic recurring payments, view statements, transfer funds, and receive activity alerts by email or text. The company's online payment guarantee states that bill payments made by customers will arrive to the correct destination and date chosen by the individual or the company will reimburse any late fees or finances received up to $50.

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The Bad

• High APRs
• Additional fees
• Service limitations

High APRs

APRs range from 10.24 to 24.24 percent depending on card selection. Cash advance APRs are particularly high at 25.5 percent. Balance transfer APRs are at a variable 19.24 percent. The penalty APR is at a staggering 29.99 percent. Cardholders should be careful to only carry balances that they can easily pay off each month to avoid excess charges. Individuals with less than perfect credit may want to consider a similar competitor's offering with lower APRs.

Additional Fees

The Union Bank Secured Visa Credit Card features a $25 annual fee. The company charges a $37 late payment penalty and a three percent foreign transaction fee. Cash advance and balance transfers are at five percent which is much higher than the three percent industry norm. There is also a $10 daily overdraft fee assessed on overdrawn checking and savings accounts. There is also a returned payment fee up to $35.

Service Limitations

Union Bank only provides a grace period of 21 days to avoid interest on balances not paid in full each month. The company's overdraft protection on checking and savings accounts works as a cash advance on the secured credit card and cardholders will be subject to the associated fees. There is a spending limit cap for earning points on the rewards card of $6,000. The credit limit on the Union Bank Secured Visa card is determined by how much the cardholder deposits in the account, which can be anywhere between $300 to $5,000. The amounts that can placed on the card at a given time are restricted to $50 increments.

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The Bottom Line

Union Bank offers a variety of credit card options that are best suited for customers with excellent credit histories. Depending on card selection, customers can earn reward points, enjoy lower rates, or build their credit histories. All cards feature chip technology, free FICO score, cell phone protection, and 24/7 online account access. The financial services company offers online and mobile banking services as well to cardholders for easier bill payment. The credit card offerings have high APRs and additional fees that are not suitable for individuals with poor credit histories, frequent travelers, and those looking to consolidate large amounts of debt from multiple cards. Cardholders should read contract terms and conditions carefully and only carry balances that they are capable of managing full payment for each month.