Credit Union of Colorado Provides Tips on What to Consider When Choosing a Credit Card
Credit cards can seem like an easy answer to pay for the things that you need and want. However, like any financial decision, it is important to carefully weigh your options when choosing a credit card.
According to Experian, one of the three major credit reporting agencies in the country, the average consumer in the United States has four credit cards and more than 60% have at least one. Research conducted by WalletHub shows that Colorado has the fourth-highest credit card debt in the nation. The median credit-card balance of the average Coloradan is approximately $2,576. Assuming an average interest rate of 16.22% and a monthly payment of 2% this $2,576 would end up costing $6,891 and would take 22 years and 9 months to pay off.
“Many credit cards attract consumers with an initial 0% interest rate. But consumers need to understand what the interest rate will be after the promotional period ends especially if carrying a balance. It’s important to research your credit card options to know the facts about the interest rates and the enticing rewards that can often make a credit card seem very appealing,” explains Joseph Jonas, branch manager at the Fort Collins Credit Union of Colorado. “Credit Union of Colorado helps our members make the best credit card choice for their financial situation.”
Based on Federal Reserve data, the average credit card interest rate is currently 16.22% and many rewards-based cards – which offer the opportunity for cash back, points, or miles on purchases – have high annual fees and rates of 20% or higher. However, there are many credit card options available that do not have annual fees and offer lower interest rates. For example, Credit Union of Colorado offers two credit cards that have zero annual fees and interest rates starting from 6.25% to 7.25%.
“I encourage you to research the available options, ask questions and use the resources you have available to you, such as your credit union or bank, to help you make a choice that works the best for you,” says Jonas. “Credit cards play an important role in how we make purchases and manage our finances. There is a credit card out there that is right for you.”
For those interested in learning more about their credit card options at Credit Union of Colorado, call 800-444-4816 or apply at cuofco.org.
With more than 85 years of experience, Credit Union of Colorado is a stable, member-owned financial institution with more than $2 billion in assets serving more than 140,000 members. The Credit Union of Colorado Foundation supports education and emergency human services programs through college scholarships and grants to nonprofit organizations.