Whenever you make a purchase with your credit card, the wise move is always to pay off the purchase before the bill is due to avoid interest charges and late fees. If you know that won’t be possible in the short-term, the best thing you could do is keep your interest payments low by choosing the card with the lowest interest rate. The PenFed Promise VISA Card can make sure that you pay as little interest as possible, with one of the best purchase APRs currently available.
The PenFed Promise VISA Card offers cardholders an introductory purchase APR of 7.49% for 36 months. Unlike most credit cards where the purchase APR jumps after the introductory period, this card only increases slightly, to a variable rate based on the Prime Rate currently at 9.99% variable APR. The purchase APR depends on the prime rate, so if the prime rate increases, you can expect your credit card interest rate to do the same.
Unlike other credit cards, the PenFed Promise VISA Card does not offer a rewards program. Why in the world would you decide to use this card over another that can earn the user cash back or other benefits?
It comes down these key features no annual fee, no foreign transaction fee, no late fee, no balance transfer fee, no penalty pricing, and the interest rate. If you’re planning a big purchase and know you won’t be able to pay the balance in full immediately, this is the card to use. Other credit cards charge between 11.99% and 27.99% depending on your credit history, and if you drag out minimum payments on those cards, your interest payments will be large. While you would receive a substantial reward on another card, the interest you will fork over may cost you more than the reward you stand to receive. In fact, depending on your spending patterns, the difference could be significant over time.
The PenFed Promise VISA Card does not carry an annual fee, so the card is always free to own. You need excellent credit as well as meeting other credit standards set by PenFed and you are required to be a member of the Pentagon Federal Credit Union (PenFed) in order to be considered for approval for this card. To be considered for membership into the credit union here are some examples of eligibility criteria:
- Member of the United States Military or Uniformed Services
- Member of an eligible military association
- Employed by the US Government
- Employed by an eligible place of business
- Family member of someone in the United States Military
- Employee or volunteer of the American Red Cross
- Reside on a military base
- Make a one-time donation to the National Military Family Association
- Make a one-time donation to Voices for America’s Troops
This year, one of your many New Year’s resolutions should be to pay absolutely no credit card interest. For those unable to obtain this goal, consider the PenFed Promise VISA Card for big purchases.
Updated November 9, 2014 and originally published December 30, 2010. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.