If you are looking for a credit card with a low interest rate that doesn’t base your ability to get it solely on having great credit, then you’ll want to take a look at the Palmetto Citizens FCU Visa Equity credit card. An equity credit card is a credit card based on the equity in your home.
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Of course, to qualify for the Palmetto Citizens FCU Visa Equity credit card, you will have to own your own home, and have equity in your home as well. In addition, you’ll have to be a member of the Palmetto Citizens FCU.
Benefits of the Palmetto Citizens FCU Visa Equity Credit Card
One of the biggest benefits to using the Visa Equity credit card is its low APR. The APR for this card is 7.75%, based on the federal prime rate. If the prime rate should change, the APR will change with it. It will always be prime + 3%, although there is a minimum rate of 7.75%.
Another benefit of the Palmetto Citizens FCU Visa Equity credit card is that you will be granted a credit amount based on the equity in your home, but you only have to pay back the debt you incur by using your credit card. You see, in the past, a home equity loan meant getting a lump sum of money you had to put in the bank and you had to repay the entire loan, with interest.
With a Visa Equity credit card, you will have access to all of that money. However, if you don’t spend your balance on your credit card, then you aren’t actually accruing any debt or accruing interest on funds that you aren’t using. Of course, once you start using your card, you have to repay your credit card debt just like you would with any credit card.
Considerations for the Palmetto Citizens FCU Visa Equity Credit Card
One major downside to this credit card is that every time you use it, you are reducing the amount of equity that you have in your home until you repay the debt. In addition, unlike a traditional home equity loan, the credit union can change the terms of your Visa Equity credit card as long as it informs you in writing of the changes. This means that Palmetto Citizens FCU can increase your rates if they want to.
Another consideration is that your Visa Equity credit card may have a much higher credit limit than a regular credit card would.
This may not seem like a bad thing to you, but if you were to max out your card, you could end up with a monthly payment you couldn’t afford.
The Bottom Line for the Palmetto Citizens FCU Visa Equity Credit Card
For many people, the Visa Equity credit card is going to be a valuable resource. Just keep in mind that you are borrowing against your home and the bank can take ownership of your home if you were to default on this card (just like they could if you took out a second mortgage). If you can qualify for a traditional credit card, you might want to consider that first!
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- Palmetto Citizens Federal Credit Union Visa Platinum Credit Card
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- Palmetto Citizens Federal Credit Union Visa Share Credit Card
- Palmetto Citizens Federal Credit Union Visa Gold Credit Card
- Utilities Employees Credit Union Home Equity Visa Platinum Credit Card
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