KEMBA Financial Credit Union freezes credit card rates
COLUMBUS, OH (March 27, 2018) — KEMBA Financial Credit Union, based in Columbus, OH with $1.2 Billion in assets, and serving 100,000 members, has reduced credit card rates back to 2017 levels and is freezing those rates until January 1, 2019. This freeze comes as the Federal Reserve has announced recent rate increases totaling 50 basis points, with the expectation of two to three more additional rate increases in 2018. Rate increases can place additional pressure on consumers’ budgets, while making it more difficult pay down balances; for example, credit cards rates are often variable; meaning that when the Fed raises rates financial institutions will pass the hikes directly to the consumer.
“As a credit union, we always look to do what is in the best financial interest of our members,” said Jerry Guy, President and CEO. “By freezing their credit card rate, it will allow our members to pay down debt faster and enhance their overall financial well-being.”
According to popular financial website, NerdWallet, the average household with revolving credit card debt pays more than $900 a year in interest alone. Each Prime Rate increase hike adds up and increases the burden of debt for the average credit card holder.
“Most consumers will feel the effects of a Prime Rate increase almost immediately,” Guy said. “Our members can be confident that their credit card rates will remain consistent throughout 2018 regardless of any future Fed driven increases, which provides a sense of financial stability and predictability.”
Consumers have a multitude of choices when it comes to picking the best credit card for their personal needs, and for people with revolving debt a low interest rate should be one of the most important factors. According to bankrate.com, the average credit card rate is 16.84%, with some store credit cards nearly double that. At 10.09%, KEMBA’s average interest rate saves the average consumer 40% in interest alone, further illustrating the importance of paying attention to the interest rate attached to a credit card.
“At KEMBA Financial, we pride ourselves on offering one of the lowest credit card rates in the industry, and the rate freeze only further demonstrates that our credit card is a smart choice for Central Ohioans who are looking to get out of credit card debt faster, and better manage their hard-earned dollars,” said Guy.
About KEMBA Financial Credit Union
As a not-for-profit financial cooperative, KEMBA Financial Credit Union offers a full range of financial products and services to its members.
Established in 1933, it is the largest Central Ohio-based Credit Union with ten full-service retail branches, assets of $1.4 billion and more than
107,000 members. For more information, visit kemba.org.