application solicitation disclosure (9 20 2024)

The application solicitation disclosure (9 20 2024) filing from Kirtland Federal Credit Union sets out a purchase APR of 10.5%–17.25% and a 12-month 0% opening period. The purchase rate sits at roughly the 22nd percentile of the 4,587 agreements indexed here.

On the face of the filing

What follows is drawn entirely from Kirtland Federal Credit Union's CFPB filing for application solicitation disclosure (9 20 2024). The filing runs three pages, and It is issued on the Visa network.

The disclosure covers a purchase rate, a cash advance rate, a balance transfer rate, a late payment maximum and a foreign transaction fee. It is silent on a penalty rate and an annual fee line.

One important caveat sits on top of everything else here: the rate table in this filing covers more than one product. Figures shown on this page may belong to a sibling card in the same table rather than to this one, and only the PDF can settle which row applies.

The interest-free window

This agreement opens at 0% for 12 months, the only period in the document where carrying a balance is free.

About 458 agreements in this corpus carry a zero-percent opening rate; this is one of them.

Behind the promotion sits a 17.25% purchase rate. On $2,500 that is in the region of $471 a year once the window closes.

Put the other way round, the 12-month zero rate is worth roughly $471 on a $2,500 balance relative to paying the go-to rate from day one — a real figure, but one that only materialises for someone who was going to carry that balance anyway.

Where the purchase APR sits

This is a tiered agreement: the filing discloses a purchase APR anywhere from 10.5% to 17.25%, a spread of 6.75 percentage points. Which end of that band applies is set by the issuer at account opening and the filing does not say how.

The floor of that band sits at about the 12th percentile of filed purchase rates; the ceiling sits at about the 22nd. In corpus terms the same card can be cheap or expensive depending on how it is priced.

Because the rate is variable, the figure quoted is tied to an index and will drift with it. Nothing here is a fixed commitment.

This figure is the post-promotional rate. The introductory pricing is handled separately further down.

What the rate means in dollars

At the disclosed purchase APR, $3,000 revolving for a full year costs something like $565 in interest.

A typical filing in this index would charge about $738 on that balance; this one is roughly $173 a year below it.

Note the $0.50 minimum interest charge, which overrides the arithmetic above whenever the calculated interest falls below it.

That maths assumes a static balance and nothing else — no payments, no additional purchases, no fees folded in.

The no-interest path

The filing gives 25 days' grace on purchases, meaning a statement balance paid in full within that window attracts no interest. That matches the 25-day median across the corpus almost exactly.

The $0.50 minimum interest charge means the effective cost of carrying a very small balance is far higher than the quoted APR implies.

The downside terms

$25 is the disclosed ceiling on a late payment fee, placing it near the 32nd percentile of the set.

What the card costs before you borrow

Cash advances carry a cash advance fee of $3 or 1% of the advance, whichever is greater and a cash advance APR of 10.5%. The two halves of that fee cross at about $300: below it the flat $3 applies, above it the percentage does.

Transferred balances are priced at 10.5%; no separate transfer fee was captured from the filing.

No foreign transaction fee is charged, which puts this filing in the roughly 22% of disclosing agreements here that do not take a cut of overseas spending.

The issuer's other agreements

Kirtland Federal Credit Union has 13 agreements indexed on this site. Their disclosed purchase rates run from 12.75% to 17.75%, and this one at 17.25% is more expensive than 7 of them.

What the filing does not tell you

The disclosure parsed here does not state an annual fee and penalty pricing. Those gaps are gaps in what could be read from the filing, and the PDF may well address them in prose the rate table does not capture.

What this analysis can address is bounded by the filing: rates, fees and the terms around them. Everything a card issuer might advertise — rewards, benefits, bonuses, who qualifies — falls outside the document and outside this review.

Go to the source

Everything here is a reading of the filed agreement, three pages of it, which is linked above and which governs. Terms also change between filings, so the date on the document matters.

In short

The pricing here is middling by the standards of the index — 17.25% on purchases is near enough to typical. And because the filing covers several products in one table, even the figures that are right may belong to a different card.