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7 Reasons to Use a Low Rate Credit Card

If you carry a balance on your card, it is important to consider your interest rate. Nearly all of us want to pay down debt and improve our credit scores. Getting savvy about these things can start by choosing the right card. But which card? The article below shows you why we think it is the card with the lowest Annual Percentage Rate.

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  • 1. It’s a long term money-saving solution. Carrying a balance on a credit card with a higher rate means you pay more interest than if your card had a lower APR. Over time, interest adds up.
  • 2. Lower minimum payment. A lower interest rate means a smaller monthly payment, as long as you’re paying it down. Make sure you don’t miss any payments, because most cards carry a penalty fee.
  • 3. Is the APR Fixed or Variable? Many people forget to ask this question when shopping around. With many cards the rates increase over time based upon things like the Prime Rate. The rate will apply to the entire outstanding balance on the account. On a fixed rate card, even if the rate is increased, any balance in existence at the time the rate increases will remain at the low rate until that balance is paid in full. A low fixed rate on a credit card is music to our ears.
  • 4. Does the card have an Annual Fee? Make sure you check up front if the credit card comes with an Annual Fee. Often, cards that offer rewards will charge an annual fee. For some cards, the annual fee could be $95 or more. It is important to ask yourself if the rewards you redeem will outweigh the annual fee. Credit unions often offer credit card options with no annual fee.
  • 5. Big purchases: do the math. Doing the math ahead of time is a smart move in the long run. Even if you don’t regularly carry a balance, imagine a scenario in which you purchase a high-end camera with your card. If it costs you $2,000, and you want to pay it off over 12 months, with an interest rate of 24%, you could pay as much as $269.43 in interest. With a lower rate like 7%, you’d pay $76.64 over 12 months on the same camera purchase.
  • 6. Helps you pay your debt down sooner. With a higher APR, the interest adds up faster if you aren’t paying the balance in full. It can take longer to pay off as interest accrues. With a lower APR, the same monthly payment goes a longer way toward paying off the balance on the card.
  • 7. Understand what a high APR means for your balance. If you carry a balance, with an APR of between 15 – 20%, almost half of every minimum payment made is consumed by interest charges. With over 20% APR that becomes nearly two thirds of your minimum payment. See the inset below for an example.

So, when is a low rate credit card good for you? It’s best for folks who carry a balance, and for those who tend to make large purchases. It’s also great for those building credit and paying down debt. At Cedar Point, we think a low rate card is a win-win for everyone. Switch to Cedar Point’s low rate card and spend with confidence.

Apply for a Low Rate Credit Card

Easy and quick application, and you can receive a response within minutes.

Classic Gold Platinum

Credit Card

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Do the math

If you carry a balance, with an APR of between 15 – 20%, almost half of every minimum payment made is consumed by interest charges. With over 20% APR that becomes nearly two thirds of your minimum payment. The example below reflects a $1000 balance.

If your minimum payment is $25 on your $1000 balance:

  • At 15% APR, you will pay $12.50 of the $25.00 in interest alone. Exactly half of your minimum payment is committed to paying off accrued interest.
  • At 20% APR, you will pay $16.67 of the $25.00 in interest. Here, you'll only be paying down $8.33 of principal.
  • At 22% APR (which is a common APR for many reward credit cards), you'll be paying $18.33 in interest charges.

You get the idea. With a lower rate like 7%, you're paying more toward the principal, to help you decrease your debt faster.


Rates are fixed. Rate information is accurate as of April 1, 2019.

DescriptionAPR for PurchasesAPR for Cash Advances
Platinum 7.00% 7.00%
Gold 8.00% 8.00%
Classic 9.90% 9.90%
Credit Builder 13.38% - 14.38%*  13.38% - 14.38%* 

*When you open your account, based on creditworthiness.
All rates are subject to change. Rate information is as accurate as possible, however, please contact the credit union to verify current rates or if you would like a disclosure mailed to you.

How to Avoid Paying Interest on Purchases

Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.

Get helpful credit card tips from the Consumer Financial Protection Bureau.*


Annual Fee: None

Transaction Fees:

  • Balance Transfer: None
  • Cash Advance: None
  • Foreign Transaction: 1% of each transaction in US dollars

Penalty Fees:

  • Late Payment: $15.00
  • Over-the-Credit Limit: None
  • Returned Payment: $20.00

Click to read the Mastercard Account Agreement 

Click to read the Mastercard Billing Notice

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