A North Carolina credit union, the $238 million Piedmont Advantage, is enjoying a surge in new card business this fall as a result of a 6.9% fixed rate, no annual fee Visa card with account openings now topping 700.
The Winston-Salem CU said it was offering the cut-rate card to aid consumers who find themselves turned down by other lenders or finding "existing card providers hiking rates and raising fees."
The result for these borrowers "is they are having an even harder time managing their finances during the credit crisis," said Judy Tharp, president/CEO.
"Our members have shown a lot of enthusiasm for this new product," said Tharp. "It's very simple to understand-no tricks, no gimmicks, no gotcha fees. More importantly, it's meeting a need in the lives of our members during the recession."
The 6.9% fixed rate is among the lowest in the nation, she said. The CU staff, she said, has researched other cards "and we couldn't find a lower rate anywhere." According to the online finance site Bankrate.com, the average APR on a low interest rate credit card is currently around 9.5%.
"Many lower-interest cards are hard to get now since credit is so tight," Tharp said, "and others come with fees that make them not a very good deal."
Piedmont Advantage launched the 6.9% card in July and no date was given as to when the campaign might end.
