5 Things You Need to Know About the Redstone Federal Credit Union Card

Redstone Federal Credit Union in Alabama offers two 0-year-fee credit cards:

  • Visa Traditional visa, suitable for those with less than ideal credit history.

The latter, though, is a well-kept secret in north Alabama. The Redstone Federal Credit Union Visa Signature Card's rewards rates and benefits exceed some of the best credit cards from some of the largest banks on the market. As you might expect from a credit union, Interest rates are also lower More than you'll find on credit cards from those larger institutions.

But membership at Redstone Federal Credit Union is high, so not everyone can apply. In addition, the rich bonus rewards of this card also have an upper limit, so you need to pay attention.

Here's what you need to know about the Visa Signature Redstone Federal Credit Card.

🤓Nerd Tips

If you can't meet the requirements below to get a rewards card from Redstone Federal Credit Union, consider Bank of America Altitude® Go Visa Signature® Card instead. It can earn rewards in a few similar categories: 4 points per $1 spent on dining (including takeout and delivery); at grocery stores, gas stations, electric vehicle charging stations and eligible streaming services Earn 2 points per $1 spent; 1 point per $1 spent on all other qualifying purchases.it also has a $0 annual fee.

1. You must be a member to qualify

To qualify for the Redstone Federal Credit Union Visa Signature Card, you must be a member of the credit union. Unlike some other credit unions, joining this credit union is not easy.

As of this writing, you must fall into one of the following categories:

  • Have an immediate qualifying family member who belongs to the credit union.

  • Live in a household with a Redstone member.

  • Be a qualified government employee or contractor at the U.S. Army Depot Redstone Arsenal in Madison County, AL or the Huntsville, AL area.

  • Be a service member or dependent of an eligible location at Redstone Arsenal or Madison County.

  • Become a Madison County Reservist.

  • Become a National Guard member in one of the few eligible counties in Alabama.

If you don't live in Alabama or have any ties to Alabama, this last point may be the only way to go. Conditions Credit Union.

For example, in addition to meeting the membership criteria above, you must open a so-called “shared savings account” to join the credit union. The minimum balance required to open an account is $5, and you must keep this amount in your account at all times.

There are a lot of hurdles to jump through. on the other hand…

2. The reward rate is impressive

Many credit cards offer higher rewards on only one or two options Daily classification —That’s the exception with Redstone Federal Credit Union Visa Signature. It earns bonus cash back (in the form of points) on several top spending categories, including the “big three” for many households: restaurants, gas stations and grocery stores. It goes even further than that.

Here's what you can expect:

  • Earn 5% cash back rewards (10 points per $1 spent) at restaurants and on gas purchases, up to $7,000 in annual purchases.

  • 3% cash back rewards (6 points per $1 spent) at grocery stores, discount stores, wholesale clubs, utilities, phone and streaming services, up to $7,000 in annual purchases.

  • All other purchases are eligible for a 1.5% cash back bonus (3 points per $1 spent).

Rewards expire on the last day of the month, three years after issue.

Still, these rates are quite generous for a zero-annual-fee credit card. Yes, the combined spending cap does limit how much you can earn each year in the card's 5% and 3% bonus tiers. But if you hit those two caps, you'll get $560 in cash back every year, again with no annual fee — and that's without taking into account the card's uncapped 1.5% base interest rate on all your other spending.

usually, Other cards with 5% rewards categories Features rotating (non-fixed) bonus categories that you must track and/or opt-in to every three months. These cards also come with a 5% interest rate cap, which ultimately limits your bonus earnings to around $300 per year. They tend not to offer the additional 3% cash back category, and your best bet is usually 1% cash back on “all other spending.”

🤓Nerd Tips

this American Express Blue Cash Preferred® Card Might be more valuable in some categories. Earn 6% cash back on annual purchases of $6,000 or more at U.S. supermarkets; 6% back on select U.S. streaming subscriptions; 3% back on U.S. gas stations; 3% back on eligible transportation; and 3% back on other purchases. Enjoy 1% rebate. But unlike the Redstone Card, it has an annual fee: The annual fee is $0 for the first year and $95 thereafter. Terms apply.

3. You have redemption options

Technically, the Redstone Federal Credit Union Visa Signature earns points, each worth half a cent when you redeem cash back into a Redstone Federal Credit Union checking or savings account. (That's below the industry standard of one cent per point, but the card makes up for it by awarding a lot of points at once: 10 points per $1 spent = 5% cash back.)

You can choose to automatically redeem your cash back monthly, quarterly, or annually. You can also choose to redeem the full amount of available points or a specific number of points.However, there is one Minimum redemption requirements At least $5.

But you can also choose to redeem your points for travel, charitable donations, or gift cards and certificates from select merchants.

4. It has valuable introductory offers

New cardholders will receive a $150 cash back bonus when they spend $3,000 in purchases within the first 90 days. (This offer is accurate as of May 2024.)

Additionally, the card offers an introductory 0% APR for six months for those looking for interest-free breathing space to pay down short-term debt. balance transfer Made within the first 30 days. Notably, there are no balance transfer fees, either. (This offer is accurate as of May 2024.)

If it takes you longer to pay off your debt, consider BankAmericard® Credit Cardwhich provides 0% introductory APR on purchases made within 18 billing cycles and any balance transfers made within the first 60 days.After the introductory APR offer ends, the current variable APR of 16.24% – 26.24% will apply. It charges a 3% balance transfer fee, but if it saves you money on interest charges over time, it's worth paying.

5. Low ongoing interest rates compared to other cards

As of May 2024, the annual interest rate charged by Redstone Federal Credit Union Visa Signature ranges from 17.25% to 18.00%.This is lower than average annual interest rate Accounts accruing interest in 2023 will be charged a 22.15% fee, according to the Federal Reserve.

This is also consistent with federal law, which limits interest rates on most loans and credit cards from federally chartered credit unions. (The National Credit Union Administration has maintained the 18% cap for the past several years.)

But a lower APR doesn't mean it's wise to carry a balance. Interest expenses will still increase rapidly. You'll get the most value from this card, and any rewards credit card, if you pay off your balance in full each month.

If you don't qualify for Redstone but still want a credit union rate with healthy returns, consider PenFed Platinum Rewards Visa Signature® Card. For most people, joining PenFed is easier, and the card comes with benefits like: 5 points per dollar spent at gas stations and electric vehicle charging stations; Supermarket shopping (including most Target and Walmart Earn 3 points per dollar spent on stores), restaurants, television, cable, broadcast and streaming services; earn 1 point per dollar on all other purchases.This card also offers Balance transfers made within 90 days of account opening receive 0% introductory APR for 12 months. Thereafter, the annual interest rate on unpaid balances and any new balance transfers will be a fixed rate of 17.99%.

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