USCG Credit Card Regulations

The Pentagon Federal Credit Union offers specialty cards to members of the armed forces including the United States Coast Guard. The USCG is the only branch of the military that is part of the Department of Homeland Security. During peacetime, the Coast Guard protects the country's shores and enforces maritime law. If the U.S. is at war, the Navy directs the Coast Guard. PenFed operates out of Virginia and is subject to credit card laws issued by the state of Virginia and the federal government.

Eligibility

You are eligible to apply for a USCG credit card if you are a current or retired member of the Coast Guard or an eligible relative. Relatives include spouses and children. Acceptance for applicants under the age of 21 is dependent on a parent's signature or the child sending documents showing that he has the income to pay the bill independently, per the Credit Card Act of 2009. You must be a member of the Pentagon Federal Credit Union. PenFed does perform a credit check on applicants for credit cards and a low credit score can prevent the company from offering you a card.

Purchase and Cash Advance Interest Rates

As of 2011, the annual interest rate for the USCG credit card is 12.49 percent. If you are late paying your bill by 60 days or more, your rate will increase to 17.99 percent. The Credit Card Act of 2009 prevents PenFed from raising your interest rate without providing you 45 days notice unless the increase is because of an increase in the Prime Rate.

Introductory Rate for Transfers

The PenFed USCG card has an introductory rate of 2.99 percent for the first 12 months on online balance transfers. At the end of your first year with the company, your rate will increase to 12.49 percent based on the Prime Rate. By law, this increase can occur without 45 days notice because it is an introductory rate.

Fees

There is no annual fee for a PenFed USCG credit card. There is a 3 percent fee for balance transfers and a 2 percent fee for foreign transactions. Penalty fees include up to $25 for late payment and payments returned for inadequate funds. There is no fee for being over your credit limit. Because of the Credit Card Act, PenFed cannot raise fees without providing 45 days notice and giving you the opportunity to close your account.