Choosing the Right Credit Card

In the ever-evolving financial landscape, credit cards provide a diverse array of features, including appealing introductory rates, cash back incentives, enticing balance transfer promotions, and noteworthy rewards programs.

With so many options, finding the right card can seem overwhelming. But don’t worry! The key is to simplify your search. Look for a card that helps you save money, offers real value, and fits your spending habits. Here are four key features to consider:

Annual Percentage Rate (APR)

The APR is a key factor in determining the cost of a credit card. APR represents the annual cost of borrowing on a credit card, expressed as a percentage, including interest and fees. In general, the higher your credit score, the lower your rates will be. However, dealers and lenders are not required to offer you the best available rates. The best way to reduce your costs is to shop around and compare rates between different lenders.

In addition, most credit cards have different rates for different types of usage. There may be a low rate for purchases, a higher rate for balance transfers, and an even higher rate for cash advances. Ideally, you want a card with a consistent low rate across all transaction types, like Pacific Service CU’s Visa Platinum Rewards Card.

Fees

Be aware of annual fees. Many reward programs offset the cost of the rewards by charging an annual fee. Additionally, many luxury credit cards offer special perks like concierge service, airport lounge access, and other exclusive benefits. However, they come with a high annual fee, with a few costing hundreds of dollars, just for the privilege of having a prestigious card.

Another common charge is a balance transfer fee, which usually falls between 3% and 5% of the transferred amount. For example, transferring $5,000 with a 5% fee could incur a charge of up to $250. 

In addition, another fee that many cardholders miss is a cash advance fee. Most credit cards charge between 3% and 5% for cash advances. Look for cards that do not overcharge for these fees or better yet, select a card, which doesn’t charge them at all.

Rewards

Customer loyalty is often rewarded, but it's important to take a closer look at what those rewards entail. Rewards programs are often associated with specific hotels, airlines, or entertainment venues, enhancing brand loyalty and customer engagement. If you don't always stay at the same hotel, fly the same airline, or visit the same destination for your vacations, you might prefer a more flexible rewards program. Pacific Service CU’s rewards program, for instance, allows redemption for multiple airlines, hotels, cruises, vacation packages, and brand-name merchandise. Cards that offer flexible rewards programs are often superior choices.

Security

With credit card fraud being alarmingly prevalent, a card's security features should not be overlooked. Aim to find a card that provides purchase and fraud alerts, and features like Visa Secure Remote Commerce (SRC) for secure online purchases.

When choosing a credit card, take the time to review the rates, fees, rewards, and security features to make an informed choice. With free rewards, no annual fee, no balance transfer fee, no foreign transaction fee, no cash advance fee and the same low interest rate for purchases and cash advances, our Visa Platinum Rewards card is a market leader. For more information, visit our website or contact a member service representative at (888) 858-6878.