What's so great about Penfed?

[pdxuser]

There are plenty of federal credit unions out there issuing cards. What's so great about Penfed?

[wmarat]

 1. Credit card. 5% back for gas at pump, 2% groceries, 1.25% everything else. High CL's.

2.  Great rates (auto loan)

3. Great CS (24/7).

[Cory]

Yeah, but their interest rates are also a little high for credit cards if your credit score good.

Cory

[wmarat]

I PIF every month on every card, so intersrt rate is not important.

[jmbfl]

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@Cory wrote:

Yeah, but their interest rates are also a little high for credit cards if your credit score good.

Cory

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Make sure you are comparing apples to apples. The VISA Platinum Cash Rewards card is a rewards card. And quite a rewards card it is! Also, to be clear, the APR is 13.99% FIXED. As far as I am concerned the only was to properly handle a rewards card is use it and PIF - then move on to the next month. If you do not PIF a rewards card the interest will overrun the rewards quickly. Get another card if you want to carry a balance. The more basic VISA Gold card they offer is at 10.99% FIXED, which is not too bad.

Great CC, nice CL's and informed, friendly 24-hour domestic CS! PenFed is the best!

Message Edited by jmbfl on 10-19-2008 01:24 PM

[Anonymous]

I've asked the same question and never received a convincing answer. When I compared their rates to my credit union (large state credit union), their rates were quite a bit higher for their loan products; auto loans in particular were nearly 1 point higher. Their credit card rates were way higher. Penfed was charging over 13% interest last time I checked, compared to 9% with my credit union (both rewards cards). Albeit, Penfed's rewards are better and I never carry a balance. Nevertheless, I am not impressed with Penfed's offerings overall. As far as credit unions go, they are pricey.

[Cory]

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@Anonymous wrote:
I've asked the same question and never received a convincing answer. When I compared their rates to my credit union (large state credit union), their rates were quite a bit higher for their loan products; auto loans in particular were nearly 1 point higher. Their credit card rates were way higher. Penfed was charging over 13% interest last time I checked, compared to 9% with my credit union (both rewards cards). Albeit, Penfed's rewards are better and I never carry a balance. Nevertheless, I am not impressed with Penfed's offerings overall. As far as credit unions go, they are pricey.

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Well said. Yeah, there are alot of cards with rewards and so forth with a lower APR.

Cory

[wmarat]

All my cards are rewards cards.

Citi 7.74%, 1% rewards

BOA MC 9.99%, 1% back

BOA Amex 12.99%, 1.25% back in WP points (nearly useless)

Discover 0% till 12/08, 5% on groceries,movies, restaraunts. Everything else is 1%.

Saks Elite MC 11.99%, 1% back in saksfifth points.(useless)

Chase 14.99%, 3% on some categories.

Amex Blue 12.99%, 1% back in Amex points (useless)

Penfed 13.9%, rewards structure you know, highest CL. The best CS, IMHO.

Nope, I'll stick with PenFed. Anyway I PIF.

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@Cory wrote:

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@Anonymous wrote:
I've asked the same question and never received a convincing answer. When I compared their rates to my credit union (large state credit union), their rates were quite a bit higher for their loan products; auto loans in particular were nearly 1 point higher. Their credit card rates were way higher. Penfed was charging over 13% interest last time I checked, compared to 9% with my credit union (both rewards cards). Albeit, Penfed's rewards are better and I never carry a balance. Nevertheless, I am not impressed with Penfed's offerings overall. As far as credit unions go, they are pricey.

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Well said. Yeah, there are alot of cards with rewards and so forth with a lower APR.

Cory

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Message Edited by wmarat on 10-19-2008 05:49 PM

[haulingthescoreup]

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Wesley23 wrote:
I've asked the same question and never received a convincing answer. When I compared their rates to my credit union (large state credit union), their rates were quite a bit higher for their loan products; auto loans in particular were nearly 1 point higher. Their credit card rates were way higher. Penfed was charging over 13% interest last time I checked, compared to 9% with my credit union (both rewards cards). Albeit, Penfed's rewards are better and I never carry a balance. Nevertheless, I am not impressed with Penfed's offerings overall. As far as credit unions go, they are pricey.

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It's one thing to try to come up with a best-overall ranking, looking at rewards and fees and APR and customer service and additional products and everything else under the sun. IMO, that winds up with a generic evaluation that blurs all the individual plusses and minuses.

It's very true that if one wants to revolve balances, then the gas card has a high APR, and you can do better elsewhere. But if you don't revolve balances, the APR is completely and utterly irrelevant.

APR's on cards are as meaningless to me as card design. It's all in what you're looking for from a particular card. As I have gone from a $5K CL to a $20.3K CL in a shade over seven months, and I have made back several hundred dollars in rebates without lifting a finger, and it cost me $25 to join and one hard inq for the card, two CLI's and an auto loan, it's a great product for me.

[Anonymous]

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Cory wrote:

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Wesley23 wrote:
I've asked the same question and never received a convincing answer. When I compared their rates to my credit union (large state credit union), their rates were quite a bit higher for their loan products; auto loans in particular were nearly 1 point higher. Their credit card rates were way higher. Penfed was charging over 13% interest last time I checked, compared to 9% with my credit union (both rewards cards). Albeit, Penfed's rewards are better and I never carry a balance. Nevertheless, I am not impressed with Penfed's offerings overall. As far as credit unions go, they are pricey.

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Well said. Yeah, there are alot of cards with rewards and so forth with a lower APR.

Cory

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It really all depends on your priorities.  If your focus is on minimizing what YOU are paying THEM (i.e. you are carrying balances) then clearly APR is going to matter most.  My focus is on maximizing what THEY are paying ME - because I'm not giving them a dime, and the more free money, the better

PenFed offers by FAR the best gas rewards I have seen - gas is my highest monthly expenditure, so maximizing cash back from this is my top priority!

 As hauling said,

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APR's on cards are as meaningless to me as card design.

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