The PenFed Promise Credit Card is Ideal for Carrying a Balance

by admin on 22/03/10 at 6:21 am

While interest rates are at historic lows, if you’ve glanced at your credit card statement recently you’ve probably noticed that low rates have not come to consumer borrowing. In fact, most banks still charge sky-high interest rates for carrying a balance from month to month.

If you are one of the many consumers who has credit card debt, the new Promise Visa card from PenFed is an excellent choice. Unlike other banks who offer low teaser rates that expire in six months, PenFed’s introductory interest rate of 7.49 percent lasts a full three years. Even after that initial three year period, the interest rate only increases to Prime Rate plus 6.74 percent. At today’s rates that would be 9.99 percent – much better than most other banks.

The only area where you’ll really get dinged with a high rate is if you get a cash advance. The rate for advances is 17.99 percent, rather than the lower introductory rate for regular balances.

In addition to low interest rates, the PenFed Promise credit card also comes with no fees which includes no balance transfer fees, no cash advance fees, no annual fees, no over-the-limit fees, and for those who travel abroad no currency conversion fees.

While there are no late fees, if you regularly pay late or skip bills you’ll get a warning from PenFed. If you continue to be delinquent after that they will cut you off. Also, Promise Visa cardholders must subscribe to PenFed’s e-statement service.

PenFed is not a bank, but rather is the Pentagon Federal Credit Union, and you’ll need to become a member to get the Promise Visa. If you’re a member of the U.S. armed forces it’s free to join the credit union; if not, it’ll cost you $20 to join the National Military Family Association which makes you eligible to join PenFed.

While the Promise Visa doesn’t have a rewards plan like free miles, the low interest rate more than makes up for this. Overall, this is one of the best no-frills cards out there for consumers who regularly carry a balance on their credit cards.