Huntington Bank launched a new credit card Wednesday allowing cardholders to choose between a rewards program and a low annual percentage rate.
The new "Voice" credit card offers a rewards program that allows cardholders to earn three points for every dollar they spend in a category of their choice, up to $2,000 per quarter. Cardholders can choose among 13 categories each quarter, including restaurants, utilities, gas, travel, groceries and entertainment.
If a consumer would rather have a low interest rate, the Voice credit card offers an interest rate that is 3 percentage points lower than the purchase APR on the rewards card. The rewards card offers interest rates between 9.99 percent and 23.99 percent, based on a consumer's credit. The lower-interest-rate card's APRs range from 6.99 percent to 20.99 percent, based on credit.
Both types of the Voice card come with no annual fee and no foreign transaction fees. The cards also offer an extra day to pay your bill if you miss a payment. If you make a late payment, there is no penalty rate on both cards.
The choice is attractive if a consumer is wedded to getting a credit card from Huntington Bank, says Bill McCracken, CEO of Synergistics Research, an Atlanta-based marketing research firm. Otherwise, consumers should look for the "best-in-class" for the type of card they want among all issuers.
"If you know that you revolve balances, find a card with the lowest APR in the nation," he says. "Same thing if you pay off your balances every month, find the highest rewards."
What do you think of Huntington Bank's customizable credit card?
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