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Verdict: The PenFed Low Rate Visa Gold Card doesn’t come with any cash-back rewards programs or the ability to earn free miles. It does, though, come, as its name suggests, with a low purchase interest rate. The card also doesn’t charge an annual fee or any cash advance fees. The downside is that you have to be a member of the Pentagon Federal Credit Union to apply for this card.
Overview: The Pentagon Federal Credit Union is a specialized financial institution. It is open only to members or veterans of the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies and the Veterans of Foreign Wars. Like all credit unions, the Pentagon Federal Credit Union offers a host of different credit cards.
How This Card Works: The card comes with a low purchase interest rate, unless you fail to make your required monthly payment within 60 days of its due date. If this happens, you’ll be assessed a penalty interest rate of 17.99 percent. This penalty interest rate will remain in place until you make three consecutive on-time monthly payments.
Travel and Shopping Benefits: This isn’t a rewards card, but the PenFed Low Rate Visa Gold card does come with some perks. Pentagon Federal Credit Union provides you with free automobile rental insurance with your card. The card also comes with $100,000 worth of travel accident insurance. You can take out a credit limit as high as $50,000.
Fees: The low fees are the real benefit of this card. The interest rate is 12.49 percent for both purchases and cash advances. Late- and returned-payment fees can run up to an industry standard $25. The card charges no annual fee. And, in an unusual move, cash advances come with no fees. The card comes with an introductory interest rate of 2.99 percent on balance transfers for the first 12 months after you open your account. After this period ends, the rate on balance transfers switches to 12.49 percent.
- No annual fee.
- Low purchase interest rate.
- No fees for cash advances.
- 2.99 percent introductory interest rate on balance transfers.
- Must be a member of Pentagon Federal Credit Union to take out this card.
- No rewards programs.
- Penalty interest rate of 17.99 percent.