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Verdict: Pentagon Federal Credit Union, the financial institution that offers the many PenFed credit cards on the market, promotes itself as offering the lowest purchase interest rates with its cards. The PenFed Visa Classic Card is one example: It’s purchase interest rate is lower than what typically comes with consumer credit cards.
Overview: There is a catch, though, with all Pentagon Federal Credit Union credit cards: You have to belong to the credit union to apply for these cards. And it’s not as easy as simply walking through the institution’s doors and asking for membership. Pentagon Federal Credit Union is only open to consumers in the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies and the Veterans of Foreign Wars.
How This Card Works: You’ll pay a low interest rate with this card unless you fail to send in your minimum monthly payment within 60 days of your due date. In such a case, your interest rate will rise to 17.99 percent, where it will stay until you make your payments on time for three consecutive months.
Travel and Shopping Benefits: The PenFed Visa Classic Card is not a rewards card. However, it does come with some basic perks. You’ll receive automatic travel accident insurance with this card. And if you lose your card, you’re eligible for emergency card replacement.
Fees: The PenFed Visa Classic Card comes with a solid purchase interest rate of 13.99 percent. It also comes with no annual fee. Cash advances, too, come with no fee. You will, though, have to pay fees up to $25 for late payments or for making payments that have to be returned. The card also comes with an introductory balance transfer interest rate of 2.99 percent. After 12 months, the balance transfer interest rate adjusts to 13.99 percent.
- No annual fee.
- Low purchase interest rate.
- No fees for cash advances.
- Penalty interest rate of 17.99 percent.
- Must be a member of Pentagon Federal Credit Union to apply for this card.
No rewards program.