A credit card may seem like just another tool to help you make purchases, but it can be much more. When used responsibly, a credit card can help you build a good credit history, allowing you to get loans at favorable interest rates and more. Credit cards can also help you earn rewards on your everyday purchases and protect those purchases in case of theft or damage.
Simply put, a credit card can be a lot more useful than your debit card if you use it the right way. Ready for your first card?
A credit card looks just like a debit card. However, instead of having the funds removed directly from your checking account when you make a purchase, you’ll essentially take on a short-term loan. This loan may or may not accrue interest, depending on when you pay it off.
A credit card used wisely will help you build your credit. Good credit can help you obtain future loans at favorable rates. It can also help you get approved for an apartment or cell phone, avoid utility deposits and get lower insurance premiums.
An MTC Federal Platinum Mastercard®, has a promotional introductory rate of 6.90% - 14.90% APR*.
Federal law restricts credit unions, like MTC Federal, from charging more than an 18% interest rate on their loans — and that applies to credit cards, too.
The difference between secured and unsecured credit cards.
At MTC Federal, secured credit cards are backed by a cash deposit equal to the card’s credit limit. This acts as collateral (security) and reduces the risk of nonpayment for the card issuer. Secured credit cards are great options for those who haven’t built a solid credit history yet.
You’ll make payments the same way as you would with an unsecured card, and you’ll pay interest if you don’t pay off your balance in full. Once you transition to an unsecured card or cancel your secured card, you’ll receive your deposit back, provided you’ve paid off the balance.
Unsecured credit cards aren’t backed by a cash deposit or any other collateral. You’ll get a credit limit based on your income level and credit history
How credit card interest is calculated?
MTC Federal will not charge you any interest on purchases if you pay your entire balance by the due date each month. However, if you don’t pay your balance in full, you’ll accrue interest on your average daily balance during the month.
For cash advances and balance transfers, interest begins accruing on the transaction date.
A minimum payment is the smallest amount of money you can pay each month without damaging your payment history and incurring a late payment fee. At MTC Federal your minimum payment will always be 2.5% of your balance or $25, whichever is greater. Any over limit and/or delinquency amounts are also added to the minimum payment due.
We always recommend that you pay your balance in full by the due date. If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance.
Below are the 5 factors that affect your FICO credit score and how having a credit card correlates with your score.
For every dollar spent on your MTC Federal Platinum Mastercard®, members automatically earn 1 loyalty reward point. Members can redeem points for hundreds of rewards that fit their lifestyle.
An EMV chip is a small microchip embedded in your credit card that helps prevent fraud by generating a one-time code (token) every time the card is used. This can prevent stolen transaction data from being used to make fraudulent purchases.
A digital wallet is a system that securely stores user’s payment information and passwords for numerous payment methods and websites.
See how MTC Federal MasterCards® are available for
Establishing credit for the first time is easy when you do it the RIGHT WAY! Schedule a 30 minute Individual Financial Analysis with one of our MTC Federal financial experts to help you establish the credit you deserve and meet your financial goals.