VISA Rate Change Frequently Asked Questions (FAQs)
On January 1, 2011, MAFCU’s Visa credit cards changed from fixed to variable rates. Visa cardholders were given 45-days notice of the changes, which is required by law.
Below are answers to frequently asked questions regarding these changes:
Q -- What is the rate for MAFCU Visa credit cards as of January 1, 2011?
A -- Platinum card holders have a choice –
- Option 1 is no annual fee and a rate of Prime + 7% (currently 10.25%).
- Option 2 is an annual fee of $50 and a rate of Prime + 6.00% (currently 9.25%)
Classic, Student, and Secured cardholders have a rate of Prime + 11.74% (currently 14.99%).
The annual fee was assessed on January 1, 2011, for members who let us know by the end of 2010. Members can opt in at any point, and the fee will be charged the following month. The fee will show up on their monthly statement, and will be assessed annually on that month.
The Prime Rate is published in the Wall Street Journal (Western Edition) on the first day of the billing cycle. If that day is a holiday, the Credit Union will use the Prime Rate published the next day.
Q – How do Platinum cardholders tell us which option they prefer?
A – Platinum cardholders need to notify us in writing if they wish to choose Option 2, ($50 annual fee and a lower rate). If members do not notify us, they automatically will be enrolled in Option 1, (no annual fee and a higher rate).
Q – What is the highest the rates can go on MAFCU’s Visa credit cards?
A – As a credit union, members, MAFCU never can charge more than 18% on any loan product. That is a much lower rate than many other financial institutions offer on their loan products.
Q – What will the rate be for my existing balances on my MAFCU Visa?
A – Existing balances will be subject to existing rates through the life of the balances. The new rates are effective on purchases and transactions as of January 1, 2011.
Q – How do MAFCU’s new rates compare with market rates?
A – While most credit cards offered by other financial institutions have a variable rate, our rate is still much more attractive than most other institutions. We try to keep rates as low as we can.
Q – Why did MAFCU Visa credit cards change from fixed to variable rates?
A -- Because of the current regulatory environment, it is very difficult for financial institutions to change fixed rates when necessary to respond to economic conditions. We must be able to make rate changes as needed to be able to react to regulatory changes and unforeseen economic circumstances.
We vigorously manage all MAFCU’s products and services, including our credit card program and loan portfolio, to ensure the Credit Union’s financial stability. As a cooperative, we always work toward the best interest of our members.
Q – Will the other features of MAFCU Visa credit cards stay the same?
A – Yes, members continue to enjoy these great benefits:
- Improved fraud protection
- CardLock,™ which allows members to enroll their credit card account to lock and unlock it from use at any time they choose
- 24-hour Visa customer service
- Access to credit life, credit disability, and involuntary unemployment insurance
