Avoid bank penalty rates

Sky-high credit card penalty rates can reach 29.99%

Many credit card issuers, including Bank of America and Citibank, slap you with a penalty rate if you miss two credit card payments. This is on top of harsh late fees. 

It’s completely legal. Federal law lets issuers punish you with sky-high penalty rates as soon as you’re 60 days delinquent. That means if you get into a rough financial spot, the issuer can pile on additional financial burdens.

Many cardholders are lured into these cards with special 0% balance transfer offers. Not only do the banks charge an immediate 3-5% transfer fee, they include a penalty rate just in case you fall behind. Let’s be clear here, penalty rates will wipe out that 0% introductory rate that enticed you to apply for their card in the first place.

Unfortunately, there’s more bad news. Some of these banks will also inflict penalty rates if you bounce a check or go over your credit limit. And federal law allows them to charge you these penalty rates for at least six months.

Credit card penalty rates

Don’t want to worry about penalty rates? 

Choose a card with NO penalty rates. Even when banks offer short-term low introductory rates, their regular rates are no bargain. The average bank credit card rate is now 16.22% and as high as 25.8% APR.

Our Visa Credit Card has one low rate of just 10.15% APR and no tricks or traps in the fine print.

  • NO penalty rate
  • NO balance transfer fee
  • NO annual fee
  • New 1% minimum monthly payment for flexibility

Apply Now for a Visa credit card

Trust the lender who’s on your side

Always talk to us first for your lending needs. We’re not-for-profit, with a long-standing commitment providing outstanding service and honest value to our members.  You’ll know exactly what your credit card rate will be. And, we do not punish you with penalty rates when you can least afford it.

Ready to pay off other cards? 

Fill out a Balance Transfer request and we'll take it from there!

Not carrying our Visa Credit Card yet? 
Apply now or call (888) 521-0135.