New PenFed Credit Card?

[Anonymous]

Anyone else just get this in the mail?  I have a Platinum Cash Rewards card and got a letter that talks about a few things:

1) My APR is being lowered from 13.99% to 9.99%

2) Non-gas purchases are changing from 1% rebate to 0.25% rebate effective 2/1/12

3) They are announcing a new credit card called "PenFed Platinum Rewards Card"

 a) 5 points per dollar on gas purchases

 b) 3 points per dollar on supermarket purchases

 c) 1 point per dollar on all other purchases

According to the paper, you can do a PC from Cash Rewards to this new card (so no new pull or anything) and is also subject to a rewards bonus for switching!  I'm a little unsure why they are wanting people to move away from Cash Rewards, only thing I can think of is 1 point does not equal 1 cent so it is cheaper for them...but I will be looking into it and updating this post.  For more information, you can visit - http://www.penfed.org/morerewards

[OnTheRebound]

My apologies. I didn't see your post when I posted.

[RockinRay]

While we have yet to receive this mail from PenFed, I am not sure how I feel about it. I really like the 5% gas rewards and that is what we use the current card for.

I wonder if they are going to "force" this change - and - how do you all feel about the rewards? Better / worse / ???

Ray

[UFGuy2006]

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@RockinRay wrote:

While we have yet to receive this mail from PenFed, I am not sure how I feel about it. I really like the 5% gas rewards and that is what we use the current card for.

I wonder if they are going to "force" this change - and - how do you all feel about the rewards? Better / worse / ???

Ray

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I just read the letter. Interesting... I think I'd prefer to stay with my 5% cash on gas (only use the card for that) than switching to a point based system like every other card.

[RockinRay]

+1 - I fully agree.

We have three cars here and we usually see a rebate of $22 to $32 per month. That is big in my book.

Ray

[Odiseous]

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@Anonymous wrote:

Anyone else just get this in the mail?  I have a Platinum Cash Rewards card and got a letter that talks about a few things:

1) My APR is being lowered from 13.99% to 9.99%

2) Non-gas purchases are changing from 1% rebate to 0.25% rebate effective 2/1/12

3) They are announcing a new credit card called "PenFed Platinum Rewards Card"

 a) 5 points per dollar on gas purchases

 b) 3 points per dollar on supermarket purchases

 c) 1 point per dollar on all other purchases

According to the paper, you can do a PC from Cash Rewards to this new card (so no new pull or anything) and is also subject to a rewards bonus for switching!  I'm a little unsure why they are wanting people to move away from Cash Rewards, only thing I can think of is 1 point does not equal 1 cent so it is cheaper for them...but I will be looking into it and updating this post.  For more information, you can visit - http://www.penfed.org/morerewards

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This should be interesting. I just faxed in my income verification this morning, for the Platinum Cash Rewards card. 

Right now, this offer seems to only be open to existing Platinum Cash cardholders. The advertisement also seems to indicate it should be *more* rewarding. I'm guessing they are referring to the 3 points at supermarkets. Note: The website doesn't mention the reduction of the value for 'everything else' from 1%, to 0.25%. But, that's to be expected. 

Also, based on the wording of the offer on the website" "Plus, you can jumpstart your rewards by earning 5,000 points the very first time you use your card and another 20,000 points when you spend $1,000 within the first 3 months. That's $250 that you can use toward merchandise, gift cards, and other rewards."; it still seems to be a 100:1 ratio (1 point = 1 cent) for points earned.

This tends to make me think the main difference, is that you're trading in the cash back deposit in; for an extra 2% on supermarket purchases, that you can only use for rewards (GCs, merchandise discounts, etc); and an extra .75% on non-gas/supermarket purchases. 

It certainly sounds like a better deal (if you are willing to play the points game), and you also use the card for supermarket/everything else categories. However, if you only use the card for Gas (like I plan to, as I have AmEx for supermarkets), is seems like a downgrade.

[RyVision]

Can't say I love the idea. I have never liked the idea of reward points. Just adds to the hassle. Did they suddenly hire Peggy? With the XR points from USA Prime Credit?

Have not received the letter as of yet.   Maybe AMEX BCP is possible if needed.......  More and Freedom have 5% quarters. Both include gas at different times as well.

Sometimes I wonder if the CCC's don't get together and discuss how to keep us all a bit confused about our "reward" programs.

Thank you for the heads up to watch for this information and the link as well.

[Heavy-Handed]

I'm sticking with my Cashrewards Card especially now that they have lowered the Apr to 9.99% (rate locked until June 2014).  I was never a big fan of the 13.99% even though still low relative to Prime Cards from major banks.  Rewards coupled with Single digits APR's always appeal to me.

[RyVision]

Update:

Just got the letter about the Cash Rewards Platinum changes.  Looks like we don't have to switch if we don't want to. As for BT's, NFCU is much better with promos.

Well, here's the letter (edited of personal info of course)

[RockinRay]

Thanks for posting this - good to know.

I will stick with my current card for now as I really like the 5% gas. And, we really do not use the card for anything else.

Ray