LOOK OUT!

Interesting headline in the news today:

A major bank (I'm not ratting on them, but you can probably figure it out) is raising interest rates on nearly 4 million U.S. credit card customers who carry a balance. Starting in June, any customer who has a below 10% rate that carries a balance will see their rate jump into the double digit range. Some rates will go from 7.9% to 13.9%, for no reason other than carrying a balance. Several other major banks have already made this change, and it appears all major credit card issuers will have the same policy.

For years, OFCU has tried to educate its members that having a low, initial rate, or a low balance transfer rate doesn't always turn out to be such a great deal. What happens if you're one day late on your payment? Your rate jumps to 29% or higher. What happens if you go over the limit? Again, 29% or higher for many of these credit card issuers out there. How much are you charged for a cash advance? 3% or even more!What is your annual fee? $75 or more. When are you charged interest? As soon as the purchase is made.

At OFCU, our credit cards have no annual fee, no cash advance fee at any of our branches, and a 25 day grace period on all purchases. If you're late on your payment, your rate isn't jacked up to the stratosphere. For years, the credit card industry has teased the public with their gimmicks. Now is the time if you're upset with your credit card issuer, to bring your business over to the credit union. The money you save could make a big difference in your budget!

As I learned in college, caveat empor! (buyer beware)

Thanks,

Greg