Now is a great time to think about your financial goals and ensure that the cards in your wallet are aligned with your needs. To help you start the year on the right foot, we asked our Director of Visa Services, Jayme Shea, a few questions to gain insights on evaluating your credit card options.
Why is the end of the year a good time for members to evaluate the current cards in their wallets?The New Year is a great time for a fresh financial start! Reviewing your credit cards now lets you see if your current interest rates, reward offerings, and any fees align with your financial goals in the new year. A credit card is not only a powerful financial tool that makes spending and tracking expenses more convenient, but it should also help make your finances easier to manage. When evaluating the cards in your wallet, start by checking each card’s interest rate – especially if you carry a balance – and take note of any fees that might be costing you extra.
Can you talk about why knowing the interest rate on each card is so important?A higher rate can add up quickly, making it expensive to hold onto debt. For example, rewards cards often come with higher interest rates, which means the interest you pay could end up costing you more than the rewards if you carry a balance. In that case, switching to a lower rate card like our Classic Card, can help you save on interest and you can pay your debt faster.
Currently, our Classic Card offers a competitive 12.9% APR1, which is well below the national average of 24.61%2. If you’re carrying balances on higher rate cards, consider transferring them over to our Classic Card via a Visa® balance transfer – it’s a simple way to reduce your interest while paying off your debt.
What are the benefits of a rewards-focused card, and how does PSECU’s Founder’s Rewards Card compare?If you always pay your balance off in full each month, a rewards card might be best for you. With our Founder’s Rewards Card, you can earn 2%3 or 1.5% cash rewards on all purchases and enjoy no annual fees4. The rewards you earn don’t expire and are easy to redeem in digital banking. Plus, the interest rate is still low compared to other cards – it’s also well below the national average of 24.61%2 - so it’s a smart choice for getting extra value back from your spending.
What if someone is looking to either build or repair their credit; are there any credit card options available to those members?If you’re looking to build or rebuild your credit, the Secured Visa® card is a fantastic option for you. We offer credit limits up to $2,500 and require a minimum collateral of $200 or 25% of the credit limit, whichever is higher, that’s held in your Regular savings share. You’ll use the Secured Visa just like any other card, and by making timely payments and managing your balance, you can build your credit history. This card has the potential to graduate to an unsecured card, so you won’t have to reapply for a card (if qualified) as you build or improve your credit.
What should members know about protecting themselves from fraud, especially during holiday shopping? Are there any security features that members should look for to keep their cards and accounts safer?We take the security of our cardholders very seriously, and we’ve built features into our cards to help protect you. For example, you can set up transaction alerts to monitor your spending and use our lock/unlock feature if you ever misplace or lose your card. One of the most important things to remember is to be cautious if anyone reaches out asking for your card information or tries to convince you to move money from your PSECU account to another account.
How does having the right credit card support members’ financial goals for the year ahead?The right card can make a big difference. Our credit card lineup offers options for every goal, and we’re here to support you along the way. Choose the one that aligns with your financial goals.
And don’t forget - our Resource Center, fraud prevention resources, and member support are always available to help you make smart financial moves year-round.
1APR denotes Annual Percentage Rate. Rates, terms, and conditions are subject to change. Please see the Visa® Classic, Visa® Alumni Classic, and Secured Visa® Credit Card Account Opening Disclosure and the Visa® Classic, Visa® Alumni Classic, and Secured Visa® Consumer Credit Card Agreement and Disclosure for full terms and conditions.
2The average credit card interest rate in America on 11.1.24 was 24.61% APR, according to https://www.lendingtree.com/credit-cards/average-credit-card-interest-rate-in-america/.
3You can earn 1.5% cash rewards on purchases. You can earn 2% cash rewards on purchases if you maintain a PSECU checking account and qualifying monthly direct deposit(s) of at least $500. Some exclusions may apply. See the Visa® Founder's Card and Visa® Alumni Rewards Card Rewards Program Terms and Conditions for full details.
4Rates, terms, and conditions are subject to change. See the Visa® Founder's and Visa® Alumni Rewards Consumer Credit Card Agreement and Disclosure, Account Opening Disclosure, and Rewards Program Terms and Conditions for full details.
The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.