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Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - merger

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galahad15
Valued Contributor

Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - merger

Important update for BEFCU members with a credit card:  all BEFCU single-digit, fixed-rate cards are going to receive a change in terms in the coming several months to as low as 14.79% V, as part of the merger with Arrowhead Credit Union  Smiley Sad

 

I received an Arrowhead CU members welcome kit in the mail, which mentioned that once the merger is complete in the next few months, all BEFCU cards will be switched over to Arrowhead FCU cards, around which time, BEFCU cardholders would be receiving a change in terms (CIT) notice, in the mail.  Curious about what the CIT involved, I called BEFCU member services today, and they confirmed that again as a result of the merger with Arrowhead, BEFCU cards were being required to take on Arrowhead's card rates, as new Arrowhead cards.  The BEFCU rep also confirmed that Arrowhead is not able to grandfather the current existing fixed-APR rates of the BEFCU cards  upon conversion to becoming an Arrowhead card.

 

Ime, I am extremely disappointed, to say the least -- my BEFCU card was my lowest-rate, fixed-rate card ever, at 5.49% F, which I had had for 7 years now since 2017.  Through the merger with Arrowhead FCU, BEFCU is taking the one thing that made their credit cards truly unique (at one point and for quite a few years, their card was as low as *4.99% F*!), and 100% ruining it  Smiley Sad  JMHO, but I will almost certainly never use the card again, once the card converts to 14.74%+ V, and may even close it out completely, out of protest.  BEFCU / Arrowhead has lost my business, by this totally unwelcome and unwanted change...

 

ETA:  also removed my BEFCU card from my signature, out of protest -- BEFCU / Arrowhead will no longer get any business out of me, after the card is switched over.  At that point, I am done / finished with them, for good...


Message 1 of 8
7 REPLIES 7
galahad15
Valued Contributor

Re: Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - me

Bump -- iirc, I seem to recall there were at least a few (or more) BEFCU members who had credit cards with them, on this forum? Just trying to get the word out to everyone who has BEFCU credit card...


Message 2 of 8
galahad15
Valued Contributor

Re: Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - me

Also:  some years ago, this card used to be  FOTM-ish card back when they were offering a go-to interest rate of 4.99% F, before the became geo-fenced and started requiring way-excessive POI such as tax returns, etc...


Message 3 of 8
galahad15
Valued Contributor

Re: Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - me

Hmm...so I guess the lack of responses on this thread are a way of posters perhaps indirectly saying "Interest rates  don't matter because I PIF"?  Fascinating... Smiley Indifferent

 

You do realize that if someone hypothetically had the best-available, go-to  interest rate of 4.99% F, that by the Arrowhead merger rate-jacking them to  14.79% V, that's essentially just about like a 3x or 300% increase?  And I am assuming that no one finds this to be troubling at all?  Smiley Sad

 

JMHO, but some posters' "Interest rates don't matter because I PIF" mantra on here is just way too rigid -- the lowest-available, go-to rate of 4.99% F was a truly amazing and epic rate, bar none, and just about the very-best long term, fixed APR that was available from BEFCU -- and for anywhere -- for quite a few years.  In mho, some people on this forum are simply 100% close-minded to ultra-low, long-term, go-to APRs such as 4.XX%, 5.XX%, 6.XX% , 7.XX%, etc. fixed-rate interest rates.

 

Ok, I've said my peace and I'll get off my soap box now...


Message 4 of 8
Guyatthebeach
Valued Contributor

Re: Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - me

Galahad5,

 

It's kind of sad that banks and CU's are doing away with fixed rate and single digit rate credit cards.  Out of my portfolio, I only have one card left that has a fixed rate and is still a single digit rate Visa, that at SCSCU at 9.49% APR. Eventhough I pay in full monthly, I like the idea of being able to carry a balance and not get clobbered with high interest rates.

 

As a matter of fact, I only have one line of credit that is under 10%. 

It will be interesting to see if financial institutions bring back low fixed rates or single rate APR credit cards back.  

Guyatthebeach

Message 5 of 8
galahad15
Valued Contributor

Re: Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - me

Many thanks for your post @GuyatthebeachSmiley Happy  Also very sorry and my genuine sympathies as well to hear that currently you have only one single digit, fixed rate card left in your collection of credit cards.  I agree with your post 100% btw, and I also hope that fixed rate, single digit APR cards may somewday make a comeback at credit unions as well.  Thx again!


Message 6 of 8
Ushio
Member

Re: Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - me

Sounds kind of painfully uncompetitive to me for a non-rewards card. My Apple Card is currently sitting at 15.74%.

 

What even is the point unless they're targeting people new to credit?

Message 7 of 8
crystal626
Regular Contributor

Re: Important update for BEFCU members with a credit card: all fixed-rate cards going to 14.79% - me

My AOD card got hiked from 8.99% F to basically 18% variable (I think it's probably going to 17.5% now but I don't care to look it up). It's just the way things are going right now. Fortunately I don't typically have to carry a balance and when I do, I just open a new 0% card to do it, but I understand how upsetting it must be to lose that.

Message 8 of 8
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