PenFed Cash Rewards messup

[Powahh]

I joined the PenFed 5 days ago to get some 3% CD rates.

I figured that I should apply for a credit card with same credit pull they used when I joined CU. I did not really need it because I have 2 SallieMae cards.

Since they devalued points on other credit cards the Cash Rewards seemed like the best card they currently have. I read the description and I figured that I qualify for the Plus version of the card so I went ahead and applied via Amazon link to get the $50 gift card as well.

When I applied for the card I was not instantly approved but the application stated that they are considering a $43,000 credit line. Nice, I thought. They requested to fax income verification which I did. After that they approved me for $7500 credit line. Hey, what happened to $43,000? Ridiculous! But that's not all. They approved me for the Standard version of the card.

Usually when you apply for the credit card you get Summary of Terms for the card you are applying for upfront before you hit the Apply button. In this case there are 2 versions of the terms - one for the Standard and one for the Plus version and you're not told which will apply. I wonder if they are breaking any Credit Act rules with this...
I would not have applied for this card if I was told upfront that I would be given the Standard version.

A quick (23 minutes) call to PenFed customer service and their explanation is that it usually takes about 2 months for their system to recognize that a person qualifies for Plus version of the card. They suggested that I stick with the Standard version and it should convert to Plus version but if it doesn't convert automatically I should call after 2 statements. I'm not holding my breath for this to work without issues.

Any suggestions on what should I do? I would gladly withdraw my application but unfortunately the link is gone from my account page. I'm afraid if I withdraw now the account would still report. When I finalized the application it printed a PDF with Summary of Terms that I should sign and mail to PenFed. What if I don't? I'm certainly not Ok with $25 AF on it.

What a mess.

[takeshi74]

IIRC there are no qualifications for Plus aside from qualifying product:

https://www.penfed.org/Platinum-Cash-Rewards/

It's doubtful that closing at this point will avoid reporting.  I'd say follow up with them.  If you're doubting the CSR then call back and speak to another.

Where do you see the indication that it's standard?  At the time I applied there was no standard or plus.

[-Wade-]

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@Powahh wrote:

I joined the PenFed 5 days ago to get some 3% CD rates.

I figured that I should apply for a credit card with same credit pull they used when I joined CU. I did not really need it because I have 2 SallieMae cards.

Since they devalued points on other credit cards the Cash Rewards seemed like the best card they currently have. I read the description and I figured that I qualify for the Plus version of the card so I went ahead and applied via Amazon link to get the $50 gift card as well.

When I applied for the card I was not instantly approved but the application stated that they are considering a $43,000 credit line. Nice, I thought. They requested to fax income verification which I did. After that they approved me for $7500 credit line. Hey, what happened to $43,000? Ridiculous! But that's not all. They approved me for the Standard version of the card.

Usually when you apply for the credit card you get Summary of Terms for the card you are applying for upfront before you hit the Apply button. In this case there are 2 versions of the terms - one for the Standard and one for the Plus version and you're not told which will apply. I wonder if they are breaking any Credit Act rules with this...
I would not have applied for this card if I was told upfront that I would be given the Standard version.

A quick (23 minutes) call to PenFed customer service and their explanation is that it usually takes about 2 months for their system to recognize that a person qualifies for Plus version of the card. They suggested that I stick with the Standard version and it should convert to Plus version but if it doesn't convert automatically I should call after 2 statements. I'm not holding my breath for this to work without issues.

Any suggestions on what should I do? I would gladly withdraw my application but unfortunately the link is gone from my account page. I'm afraid if I withdraw now the account would still report. When I finalized the application it printed a PDF with Summary of Terms that I should sign and mail to PenFed. What if I don't? I'm certainly not Ok with $25 AF on it.

What a mess.

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Once you open a cd or money money account you will get the + version just give it a lil time.i have the + card

[Powahh]

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Where do you see the indication that it's standard?  At the time I applied there was no standard or plus.

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When application is approved you can opt for downloading the Summary of Terms instead of it being mailed. That's where I see that it's the Standard card with $25 AF.

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Once you open a cd or money money account you will get the + version just give it a lil time.i have the + card

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I may have not been clear about this but I did open CD 5 days before apping for the card so I already qualify and shoud have gotten the Plus card.

[Weights]

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@Powahh wrote:

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Where do you see the indication that it's standard?  At the time I applied there was no standard or plus.

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When application is approved you can opt for downloading the Summary of Terms instead of it being mailed. That's where I see that it's the Standard card with $25 AF.

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Once you open a cd or money money account you will get the + version just give it a lil time.i have the + card

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I may have not been clear about this but I did open CD 5 days before apping for the card so I already qualify and shoud have gotten the Plus card.

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Sorry to hear about the issues.  I think that's lousy on Penfed's part to not update it immediately.  I was actually thinking of applying for this card after opening a memership with them, but I don't know now....Hope it all gets worked out for you.  If you don't mind me asking, what's your scores and credit profile like?

[-Wade-]

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@Powahh wrote:

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Where do you see the indication that it's standard?  At the time I applied there was no standard or plus.

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When application is approved you can opt for downloading the Summary of Terms instead of it being mailed. That's where I see that it's the Standard card with $25 AF.

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Once you open a cd or money money account you will get the + version just give it a lil time.i have the + card

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I may have not been clear about this but I did open CD 5 days before apping for the card so I already qualify and shoud have gotten the Plus card.

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I got my card before all this mess ! Maybe you should call back and see what the problem is! It shouldn't take that long... I do know they are making changes like crazy

[Powahh]

Sorry to hear about the issues.  I think that's lousy on Penfed's part to not update it immediately.  I was actually thinking of applying for this card after opening a memership with them, but I don't know now....Hope it all gets worked out for you.  If you don't mind me asking, what's your scores and credit profile like?

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TU FICO (Barclays) is 740. Highest CL $22,500.

I got really excited when I got message about $43,000 CL being considered but getting $7,500 after manual review is also ridiculous. This will go straight to sockdrawer.

[Weights]

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@Powahh wrote:

Sorry to hear about the issues.  I think that's lousy on Penfed's part to not update it immediately.  I was actually thinking of applying for this card after opening a memership with them, but I don't know now....Hope it all gets worked out for you.  If you don't mind me asking, what's your scores and credit profile like?

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TU FICO (Barclays) is 740. Highest CL $22,500.

I got really excited when I got message about $43,000 CL being considered but getting $7,500 after manual review is also ridiculous. This will go straight to sockdrawer.

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I think that gap is quite odd as well.  Do you have any baddies reporting?