Credit cards are convenient, flexible, and offer many perks. In fact, there are many benefits of having a credit card over other methods of payment, they have a bad reputation for getting people into debt, but when used responsibly; credit cards are an empowering financial tool. First and foremost, by wielding your credit card wisely, you can extract more value from your money. This is not possible with a debit card or cash.
Some benefits of credit cards include:
- Cashback – Many cards offer the potential to receive 1%-3% of your money back, which can add up over time.
- Rewards – You can earn points that go towards hotels, gas, gift cards, and much more, ultimately saving you money.
- Frequent Flyer Miles – If you rack up enough miles, you can potentially book a round trip ticket free of cost.
- Increased Fraud Protection – You can have greater peace of mind, knowing that credit cards have increased fraud protections.
- Establishing Credit – Making monthly payments on time is one easy way you can raise your credit rating.
To help make the most of your credit card without going into debt, let’s dive into credit card interest rates and the different rates available at Mission Fed.
How Does Interest Rates on Credit Cards Work?
When you purchase something with your credit card, you are technically borrowing that money. If you do not pay it back at the end of the month, you will be charged interest. The balance you carry month to month is known as your “revolving balance.” According to the Federal Reserve, 43% of Americans who use credit cards carry a revolving balance month to month.
Note: Credit card interest is compounded monthly. In other words, your interest will also be charged interest. Thus, there is a huge incentive to pay off your full outstanding balance each month if you can.
Here are some tips to pay off your monthly balance on time:
- Keep track of your spending.
- Spend within a defined budget.
- Maintain an emergency savings fund to avoid lofty, unexpected charges.
- Set calendar notes to ensure you do not forget to pay before the due date.
How Do You Calculate Interest Rate?
Credit card rates are expressed in terms of their annual cost, referred to as the Annual Percentage Rate (APR). To find your monthly interest rate, simply divide your APR by 12. The national average APR on credit cards is around 17.37%. Fortunately, if you have good credit, Mission Federal Credit Union offers credit card APR as low as 9.9%1.
Grace Periods
Many cards provide a grace period between your credit card statement date and your actual payment due date. You can pay your statement balance any time, within this period without incurring interest. At Mission Federal Credit Union, the grace period is 21 days.
Why Choose a Mission Federal Credit Union Card?
When you choose to work with a credit union instead of a bank, you will enjoy excellent customer support and a variety of local benefits. At Mission Federal Credit Union, you can also expect low rates, low fees, and rewards.
Our Credit Card Interest Rates Explained
Mission Federal Credit Union offers several credit cards at varying interest rates. Your credit score largely determines which credit card rates you qualify for. If your credit is good, you can expect lower rates.
Annual Percentage Rates on Purchases1
We offer five different credit cards with the following purchase APR:
- Preferred Platinum Credit Card – 9.9%
- Platinum Credit Card – 11.9%
- Classic Credit Card – 15.9%
- Classic Credit Card Share Secured – 16.9%
- Mission Choice Credit Card – 17.9%
APR for Balance Transfers, Cash Advances, and Convenience Checks1
The APR for credit card balance transfers, cash advances, and convenience checks are as follows:
- Preferred Platinum Credit Card – 11.9%
- Platinum Credit Card – 13.9%
- Classic Credit Card – 17.9%
- Classic Credit Card Share Secured – 17.9%
- Mission Choice Credit Card – 17.9%
If you qualify for a Preferred Platinum card or a Platinum card, you will also enjoy a 0% Introductory APR for 12 months all purchases and balance transfers posted in the first 90 days of opening your account. After that, your standard APR will be 9.90% – 11.90% for purchases and 11.90% – 13.90% for balance transfers.2
Our Mission Rewards Program
By opening a credit card with Mission Federal Credit Union, you can take full advantage of our Mission Rewards. Simply use your credit card on eligible purchases, once every two years to maintain access to this program. Best of all, there is no annual fee. Our rewards consist of cash back, gift cards, travel expenses, and so much more.
Apply for a Credit Card Today
Now that you understand credit card interest rates, it is time to optimize your credit card usage. By paying off your credit card balance each month, you can avoid interest and still take advantage of valuable rewards.
Reap the benefits of a low fee, low interest, zero liability credit card by choosing Mission Federal Credit Union.
- Subject to credit approval; terms and conditions apply. APRs current as of 3/1/20. The balance transfer and cash advance fee is 2% of the amount of each time ($2 minimum). The foreign transaction fee is 1% of the amount of each transaction in U.S. Dollars. Maximum $20,000 in balance transfers per member. All offers subject to change without notice.
- Introductory APR will apply on purchases and balance transfers posted within the first 90 days of account opening, end on the closing date of the first billing cycle after the account is open 12 months. APR is current as of 3/1/20. In order for your balance transfer to qualify for the 0% Introductory APR, you must conduct the balance transfer by using a Cashier’s Check issued by a Mission Fed Branch or the Contact Center. Electronic transfers do not qualify. All offers subject to change without notice.
The content provided is intended for informational purposes. Mission Federal Credit Union disclaims any liability for decisions you make based on the information provided. References to any specific commercial products, processes, or services, or the use of any trade, firm, or corporation name in this article does not constitute endorsement, control or warranty by Mission Federal Credit Union.
Sources:
Investopedia. 10 Reasons to Use Your Credit Card. https://www.investopedia.com/articles/pf/10/credit-card-debit-card.asp
CreditCards.com. Average credit card interest rates. https://www.creditcards.com/credit-card-news/rate-report.php
Federal Reserve. Changes in U.S. Family Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances. https://www.federalreserve.gov/publications/files/scf17.pdf
Mission Federal Credit Union. Credit Card Rates. https://www.missionfed.com/files/credit_card_rates.pdf?t=1241564330
