PenFed - Got to love them!

[RockinRay]

PenFed blows me away!

We currently have their cash back Visa which we only use for gas purchases for the 5% statement credit each month. It carries a CL of $20k...

We got a balance transfer offer from them earlier this year (0%-18 mo) which we took advantage of to purchase some new kitchen stuff. So, now we are mixing new gas purchases with a BT. The last statement arrived and it showed $0.81 in interest. I never pay interest so I gave them a call to see why we were charged. They could not identify the transaction that resuted in the interest charge and refunded the interest.

I told them I was concerned that this might happen again and the nice rep suggested that we apply for an additonal card to keep things seperate. I completed the application (took the hit), and followed up with an email to them stating I just wanted a small ($5k) line on this new card as it would be used for gas purchases only.

I checked the status late yesterday and the card show approved with a $23,000 CL! I was blown away to say the least. That is a total line from PenFed of $43,000 over two cards.

This morning, I sent them an email asking them to split the lines so the gas card will have a $5k limit and the new card will have a $38k limit. Got a reply already "no problem".

One everything is moved in to place, they will convert the new card to the Visa Siggy card they are now offering.

So really the best of both worlds, $5k gas, $38k - everything else (should we choose to use it). I do like the no foreign transactions fees too...

Super pleased about this - PenFed really stepped up! We have been members for two years now.

Had to share this as I was shocked by the end result.

[yellowcake]

Congrats! Keep in mind, the Visa siggy card is switching to 3-2-1 from 5-3-1 in October.

[youngandcreditwrthy]

What's your FICO? It's gotta be like 800!

[roshan]

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@yellowcake wrote:
Congrats! Keep in mind, the Visa siggy card is switching to 3-2-1 from 5-3-1 in October.

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What do yo mean by 3-2-1? 

thanks

[yellowcake]

3 points for gas, 2 for groceries, 1 everywhere else vs 5 points for gas, 3 for groceries, 1 eberywhere else currently.

[boomhower]

Don't do the conversion.  As mentioned they are devaluing the rewards and it will show up as a new account.  Penfed doesn't convert cards, they close the old and open a new one. 

[HankNY]

Rray
I have penfed card and did BT too and was also charged interests. When I called them they said if you have done any new purchase post BT it would automatically incur interest charge. Is this true ? Since I never did BT I let it slide and SD the card. But now your post is making me rethink the situation. Please educate me on this.

[longtimelurker]

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@HankNY wrote:
Rray
I have penfed card and did BT too and was also charged interests. When I called them they said if you have done any new purchase post BT it would automatically incur interest charge. Is this true ? Since I never did BT I let it slide and SD the card. But now your post is making me rethink the situation. Please educate me on this.

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Unless specifically excluded, this is fairly common with BT.  You basically lose the grace period for purchases.  Usually there are warnings (perhaps in small type!) about this.

So BTs are best done on cards you don't otherwise use for purchases, or use those that keep the accounts separate.

[longtimelurker]

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@boomhower wrote:

Don't do the conversion.  As mentioned they are devaluing the rewards and it will show up as a new account.  Penfed doesn't convert cards, they close the old and open a new one. 

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The rewards will probably devalue anyway, so it depends if the Sig benefits outweigh the possible new account

[RockinRay]

I was unaware that they are changing the reward structure on the Siggy card... Thanks for that heads up!

Also, it makes sense that they would charge interest on new purchases with a BT on the account. I should have read the fine print!