question about what PenFed does with the cash back you've earned

[MojaveMoon]

Quick question. I read a comment that PenFed puts the cash back reward in your account automatically. When I read that, I thought to myself, which account is this ? If it's put into a checking account, is there any other option for someone who either doesn't have or doesn't want a PenFed checking account ?

[Anonymous]

From what I gather, the cashback comes in the form of a statement credit (ie onto your credit card account) each month - but as I don't actually have an account or card with PenFed, I could be wrong. Even if I'm right, there may be an option to get the cashback another way, I don't know.

So... not much help, then - sorry! 

[Anonymous]

The PenFed rebate for a particular month appears on that month's statement as an account credit. I've had their Visa card since August, & I don't think that they pay rebates any other way.

[haulingthescoreup]

Yep, fevmlo and JimB are both right. It will appear as a credit on your account on your statement. It posts on statement closing day.

So a lot of times, you'll actually have a credit on your account if you PIF'd first. Although they can be squirrelly about posting charges a little late when you think everything has shown up. I wind up with a small balance posting about once every four months, grrr.

But it's nice to have that credit show. You don't have to keep track of anything, send anything in, it's just there.

[jmbfl]

I think the first two months I had the PCR Visa I reported small balances. Every month since then I have paid the account in full by the statement drop and received a statement reflecting a credit balance due to the reward payout. When the statement reflects a credit balance a zero is reported to the CRB's. They don't report minus numbers.

[MojaveMoon]

Thank you everyone

I have a follow-up question. Because these rewards are being posted monthly as a credit, I guess that unless you spent a lot of money that month then your credit is usually going to be less than $ 20. And for an amount that low I guess it would be too much hassle to (regularly) request that PenFed cut you a check.

So, suppose for the following month or two or more, you don't charge anything to your PenFed card. How long will PenFed allow that credit to remain on your credit card ? With other banks, it seems that usually after one or two months the bank's computer automatically mails you a check for the amount of the credit.

Or do you have an option of transferring the credit to one of your PenFed accounts (e.g., savings or checkings) ?

While I can see the convenience of posting the reward as a credit, in a way it seems like it could be a pain in the neck sometimes.

Message Edited by MojaveMoon on 12-09-2008 04:39 AM

[haulingthescoreup]

Interesting question!

Since we use the card for all our gas and grocs purchases, I don't know that we've ever gone a week, much less a month, without using the card.

You might need to call CS on this one.

[MojaveMoon]

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@haulingthescoreup wrote:
Interesting question!

Since we use the card for all our gas and grocs purchases, I don't know that we've ever gone a week, much less a month, without using the card.

You might need to call CS on this one.

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Would they mind a phone call from a non-customer ? Is PenFed good about giving detailed answers by email ? So far I've had poor experience with communicating by email with banks. Hopefully credit unions take more care when answering emails.

Message Edited by MojaveMoon on 12-09-2008 04:45 AM

[haulingthescoreup]

I've never e-mailed them, but when I first called, dithering about whether to apply, the CSR was wonderfully patient and answered all my questions.