bank rates

PenFed Card Promises Super-Low APRs

You'll pay 7.49% variable on all purchases.Pentagon Federal Credit Union has some of the best credit card deals around.

In the past, we’ve had great things to say about its gas rewards credit card and its travel rewards credit card.

You won’t earn any rewards with its new Promise card, but it does offer one of the lowest annual percentage rates in the market, plus no fees of any kind.

Here’s a look at the credit card details:

APR 7.49% variable (that’s the prime rate of 3.25% plus 4.24%) on purchases for the first 36 months, then 9.99% variable. 4.99% on balance transfers made before Dec. 31, 2011, for the first 24 months, then the purchase rate.
National Average APR 15.22% (source: CreditCards.com)
Annual Fee None
Rewards None
Verdict This card has some of the lowest interest rates around, and no fees of any kind. However, you’ll likely need excellent credit to qualify.

The APR on purchases is a super-low 7.49% for the first 36 months — yes, that’s three full years. After that, the APR will vary with the prime rate, currently 9.99%.

There’s also a great balance transfer offer, but you’ll have to act quickly to get the best deal.

If you make a balance transfer before the end of 2011, the APR is only 4.99% for the first 24 months. After that, the APR on the unpaid balance or on any new transfers will revert to the introductory 7.49% APR for 36 months from the date of account opening and 9.99% variable after that.

Even better, there are no balance transfer fees.

Actually, there are no fees of any kind with this card: no annual fee, no late fees, no over-the-limit fees, no foreign transaction fees and no penalty APR.

There’s also no fee on cash advances, which carry a relatively low APR of 17.99%.

There is one likely hitch: With interest rates this low, you’ll probably need excellent credit to qualify.

You also need to be a member of PenFed, but it’s not difficult to join.

The credit union is open to active and retired Army, Air Force and Coast Guard personnel and their family members, as well as employees of the Department of Homeland Security and other government agencies and military bases. Members of the VFW also qualify, as do employees or volunteers of the American Red Cross.

If you fail to qualify because you’re not a member of any of these organizations, you can also join if you register with either one of two charities that support the military and their families: the National Military Family Association, which costs $20 to join, or the Voices for America’s Troops, which costs $15.

However, you don’t have to stay a member of either group to retain your membership in PenFed.

Compare this deal with the credit card offers in our extensive database.

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Comments (1)
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One Existing Comment
  1. Current Cardholder said:
    on December 31st at 06:05 pm

    Vary Sad! Pen Fed’s Visa which I have is being screwed over and then we are offered some crappy new card. Yes, when I first got this cashback card we got 1.25% back on everything and like 5%gas/3%grocery. And all this was automatically taken off our monthly statement. No gimmicky points to deal with, no redeeming, no offers with hoops to jump through. Just straight up good deal with no hassle fuss or muss. Why do they have to screw up a perfectly good thing. Greed, Lust for more of everybody’s money???
    Sad!