Credit Cards

On credit cards, the interest rate and APR are the same thing.

Some financial products have a different interest rate and APR (annual percentage rate). That’s because the interest rate is the rate to borrow the money itself; it’s based on market rates and your individual credit score. The APR, on the other hand, includes other fees and costs that are also part of the loan; it's decided by the lender. You can think of the interest rate as a way of determining your monthly costs, and the APR as a way to determine the entire cost of the loan. Federal law requires that lenders like us tell you the APR in every consumer loan agreement.

The interest rate on your credit card, also known as the Annual Percentage Rate (APR), is used to calculate charges for borrowing money (i.e. using your card) each monthly statement period. If you pay off your card in full every month, you won’t be charged interest. The interest rate will vary from card to card and person to person, depending on things like your credit history and credit score. The interest rate you are charged is also affected by the interest rates in the economy.

A primary advantage of debit cards is that they can help you stay on budget – because the purchase is debited out immediately from money you already have. It’s more difficult to overspend with a debit card.

Another advantage of a debit card is that it usually comes with no fees and an easy application. You don’t need a high credit score to qualify for a debit card. All of Patelco’s checking accounts come with a no-fee debit card.

A primary advantage of credit cards is that they allow you to make larger purchases that you may not have the cash for right now – such as an appliance or an unexpected car repair.

Another advantage of credit cards is that they are an easy way to build your credit history and (when used properly) increase your credit score. Having an established credit history and a good credit score can help you get a better loan later for buying a car or a house.

Whether you need a debit card or a credit card, Patelco has options – and we're always ready to talk to you if you need help deciding whether to use a credit card or which credit card to apply for. Visit one of our branches or call us today. Or, if you're ready, apply online.

We calculate your monthly charges based on your balance and your annual percentage rate (APR). If you do pay your card off in full each month, you won’t be charged for interest.

If you don’t pay your card off in full each month, you will be charged for interest. Even though your APR is a percentage expressed in terms of a year, it is also used to calculate charges for a single month. Think about miles per hour – if you’re traveling 40 miles per hour, you will travel 40 miles in an hour. But you can still travel 40 miles per hour even if you only drive for thirty minutes.

When you carry a balance and don’t pay off your card in full, you’ll be charged for interest based on the annual rate, but calculated in terms of how long you’ve carried that balance.

There are three main types of fees for credit cards: transaction fees, late fees, and annual  fees. Fees are different from interest, which is charged when you don't pay off your card in full each month.

Transaction fees

Many banks charge transaction fees for things like going over your limit or making balance transfers. At Patelco, our cards do have fees for taking a cash advance or making a foreign purchase. Most of our cards have zero balance transfer fees or overlimit fees. Check out the benefits of individual cards to see if any fees apply. We think you'll be delighted how many fewer fees we charge as compared with banks and even other credit unions.

Late fees

If you pay your card late, we may charge up to $15 as a late fee. This is lower than the fee charged by many banks.

Annual fees

When credit cards have an annual fee, that's usually because the card has excellent perks and rewards. The fee is used to help cover the cost of those benefits. Most of Patelco's cards have no fee, even the ones with great additional benefits. Two of Patelco's cards — the Payback Rewards World Mastercard® Credit Card and Passage Rewards World Elite Mastercard®Credit Card — do have a fee, and it helps us provide the cards' amazing benefits and rewards, up to 2% cash back and 3x points, respectively.

Saving money on credit card fees

Our fee schedule lists all the fees for our cards. When you apply for and receive one of our cards, we'll list any potential fees in a disclosure that you'll get after opening the account. Most credit card fees can be avoided. You can also consider using a no-fee debit card to make purchases instead of using a credit card. Our debit cards come with excellent purchase protection, just like our credit cards.

You may also want to do the math and see if paying an annual fee actually benefits you because of the additional rewards that come with an annual fee card. Start by checking out our Payback Rewards World Mastercard® Credit Card.