Watch Out for Credit Card “Gotchas”
PSECU’s Visa® Capitol Card® is a smart choice. Our card is convenient and, most
importantly, guided by the credit union philosophy that puts members’ needs first.
Other card issuers, who may be more motivated by their bottom line, create rules that favor them and not consumers. You won’t find those rules easily because they bury them in the fine print, and if you break a rule, they’ve gotcha.”
In a November 2005 article, Consumer Reports (CR) examined the nature of credit card practices. With their permission, a few of their major findings are included here. Keep in mind these are policies in place at other” card companies and not at PSECU.
FEES
With those "other" cards, you might pay a fee for:
- The privilege of having the card
- Not using your card
- Cash advances
- Paying less than the minimum payment
- Year-end statements
PSECU’s Visa Capitol Card has only two fees – a late fee and an over-the-limit fee. Both can easily be avoided.
INTEREST RATES
What you don’t know about those other cards could hurt you.
A fixed rate that changes. According to Consumer Reports, a fixed rate means only that the credit-card company has to give at least 15 days written notice before it changes.”
Over the past eleven years, PSECU’s Visa Capitol Card has remained 9.9% APR* for purchases. Any rate changes are carefully deliberated by a member-directed board.
Penalty rate for late payments. Some cards charge more than 30% to customers whose only offense might be a late payment to another creditor,” states Consumer Reports.
At PSECU, if you’re late with a payment, you’ll pay only a late fee. Your rate won’t change.
Penalty rate for underuse, car loan or mortgage inquiries, and even getting a new credit card.
The consumer advocacy magazine cautions that companies may kick up your rate if they believe your behavior with other creditors signals that you’ve become a greater credit risk.”
PSECU does not engage in this practice.
Get the card that works for you, not against you. Apply for your Visa Capitol Card today!
* Annual Percentage Rate