CEO Connect - Credit Card Rates and Rewards 101

• 11/30/2021

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Interest Rates

When considering a credit card offer, most consumers first look at the Truth in Lending disclosure rate provided by the financial institution. Credit card offerings often have a low introductory rate for the first twelve to eighteen months, so looking at the Annual Percentage Rate after the introductory period is essential. It is also important to look at the maximum rate that the credit card could charge. Most creditors will charge the maximum rate on some credit cards after the consumer is late on a monthly payment. It is imperative to avoid late fees or any action which would increase the interest rate.

I suggest that members make a payment to their credit card each payday. Doing this will ensure that your payment is never late and will avoid any penalty.

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Rewards

Many consumers decide to use a credit card based on the reward offered by the credit card company. Credit cards that earn travel miles on airlines or points toward hotel stays are popular, but they may limit the use of the reward points to one specific airline or hotel brand. I encourage the use of credit cards with rewards that provide as many options as possible for redemption. Some credit cards do offer cash back options. It is nice to have the cash back option but using the reward points toward travel or purchases is often more valuable than the cash you would receive.

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Truity Card Options

We offer four types of credit cards to ensure that you have the best card for your needs and lifestyle.

Our Platinum Rate credit card has a rate as low as 8.99%, and this rate is very low compared to most other national credit cards. You will also save in lower interest payments if you do not intend to pay off the balance each month.

Our Platinum Rewards and Signature Rewards credit cards earn you points for each purchase transaction, and you can use these points for airline travel, merchandise, gift cards, cashback and more! If you qualify for the Signature Rewards card, you can earn two points per dollar spent on all purchase transactions. (Members with an Advantage Checking account can earn three points per dollar on all purchase transactions.)

I also encourage you to utilize one of these cards for your online transactions. Your credit card transaction activity is available on our secure digital banking platform, and making a payment is a simple transfer from any of your Truity deposit accounts.

Dennis Halpin

President/CEO