topic Re: Closed PenFed in Credit Cards

Closed PenFed

IFtkkdx428 — Thu, 04 Oct 2018 03:55:28 GMT

Hello myFICO members,

I’m in the process of re-evaluating the current trade lines I have. There are a few reasons, being re-bucketing, better rewards and becoming more streamlined or re-organized in terms of the credit card aspect. Or simply “pruning” as another member called it. I acquired a Citi Bank Double Cash, Chase Sapphire Reserve and closed a Barclay Rewards MasterCard as of lately.

I'm sure I'll raise some eyebrows and a few will gasph. However, I decided to close the PenFed Promise Visa. I originally applied for the Promise Visa to have a low APR option. Currently the Promise Visa APR is 1% less than the Discover It I have. Even if I were in a ‘pickle’ and had to carry a balance, the 1% is negligible. Plus, I’d feel more comfortable in terms of utilization with the It’s $32,500 credit limit instead of the Promise Visa’s $7,500 credit limit.

I also thought the Promise Visa would grow. The Promise Visa had a starting credit limit of $5,000. Personal experience, I have felt misguided in regards to PenFed’s credit limit request policy. Where PenFed requires a hard pull but you believe your taking advantage of a soft pull request. The only credit limit increase I did request, ended up being a hard pull that was declined. The only time I've ever had to contact any lender for reconsideration. PenFed granted a $2,500 increase.

Speaking of those 'quarterly offers' (if that's what they're called). I believed I was given an offer for another product with PenFed. Therefore I applied, halfway through the application I had decided I should not apply. Later realized that PenFed pulled credit once selecting ‘apply’ from their product page. Not only was the 'offer' a hard pull, but credit was pulled before submitting an application. Maybe this was error on one's own behalf. Maybe more research or a call to PenFed may have been a best practice. Though I still felt like I was taken advantage of.

I looked for other products to apply for with PenFed. Which would allow the Promise Visa's credit limit to be combined. The PenFed Platinum Rewards Visa seemed valuable at first. As I haven't had a product that earns fixed rewards on fuel since the SallieMae Rewards MasterCard. After further research, it's not all it seems. The 5x points on gas purchases paid at the pump translates to 4.25% cash back. PenFed specifies, "paid at the pump." Which can limit one's potential rewards, as we all know. This doesn't include that the fuel pump's MCC is correctly coded to earn 4.25%. Even with 5x points being used for travel, I have read that PenFed's travel options aren't competitive with the direct booking i.e. airline, hotel, etc. Furthermore, the mininum threshold to redeem a gift card with PenFed is $50 which is sent via mail. From what I understand, Statement Credit(s) aren't an option. With this, there's too many stipulations. PenFed has changed quite a bit during the last three years I have been a customer.

I will say, I had a great experience when I was shopping for a vehicle in 2016. PenFed pre-approved me for more than necessary to purchase a vehicle. The entire experience was very pleasent. I received a check via mail within a few days. PenFed proactively followed up to while shopping to ensure I had a wonderful buying experience. I ended up leasing. However, I kept the Regular Savings in the event I need to decide to purchase a vehicle in the future. Though I may eventually close the Regular Savings, as it's another item to keep up with that isn't worth the effort.

So long PenFed!

Except for inquiries, below does not include the Citi Bank Double Cash that was approved for $9,200 on 9/11/2018 and the Chase Sapphire Reserve that was approved for $29,900 on 9/24/2018. It also does not include credit limit from recent credit limit request for Capital One with a $8,250 credit limit and Discover with a $32,500 credit limit. It also does not include Barclay Rewards MasterCard and PenFed Promise Visa as closed.

Age: 26
Annual Household Income: $100,000 Monthly Rent/Mortgage Payment: $0 TU FAKO (Provided by Credit Karma on (9/30/18): 798
TU FAKO (Provided by Capital One on 10/2/18): 798
TU FAKO (Provided by Chase on 10/3/2018): 798
EQ FAKO (Provided by Credit Karma on 9/30/18): 798
TU FICO Score 8 (Provided by Discover on 9/4/18): 769
EQ FICO Bankcard Score 02 (Provided by Huntington on 9/11/18): 776
EX FICO Score 8 (Provided by AMEX on 9/12/18): 776
EQ FICO Score NG 2 (Provided by PenFed on 9/11/18): 789

Credit Card Utilization Rate: 1% Percent of On Time Payments: 100%
On Time Payments: 334
Total Payments: 334
AAoA: 3 YR 11 MOS
Oldest Open Trade Line: 5 YRS 8 MOS
Newest Open Trade Line: 2 YRS 5 MOS
Total Accounts: 8
Total Credit Limit: $79,550
TU Inquiries: 1
Chase - 9/22/2018
EQ Inquiries: 1
PenFed - 3/12/2017
EX Inquiries: 3
Synchrony Bank - 9/24/2018
Chase - 9/24/2018
Citibank - 9/11/2018
Derogatory Marks: 0

Current Credit Cards

Capital One Quicksilver Mastercard
APR: 26.65%
Credit Limit: $6,250
Card issued: Jan/2013 Credit Card Utilization Rate: 16%

Chase Freedom Visa
APR: 20.74%
Credit Limit: $4,500
Card Issued: Jan/2014
Credit Card Utilization Rate: 0%

Barclaycard Rewards Mastercard
APR: 22.74%
Credit Limit: $7,100
Card Issued: July/2014
Credit Card Utilization Rate: 0%

American Express Blue Cash Everyday
APR: 17.74%
Credit Limit: $22,200
Card Issued: Nov/2014
Credit Card Utilization Rate: 0%

Huntington Voice World Mastercard
APR: 19.74%
Credit Limit: $3,500
Card Issued: Nov/2014
Credit Card Utilization Rate: 3%

Discover It
APR: 16.74%
Credit Limit: $28,500
Card Issued: May/2015
Credit Card Utilization Rate: 0%

PenFed Promise Visa
APR: 15.74%
Credit Limit: $7,500
Card Issued: June/2015
Credit Card Utilization Rate: 1%

Honda Financial
Lease
Opened: 4/30/2016
Term: 36 Months

Re: Closed PenFed

rbentley — Thu, 04 Oct 2018 15:26:01 GMT

My understanding is that PenFed allows you to redeem at $25. I just had $25 in rewards applied as a statement credit.

Re: Closed PenFed

IFtkkdx428 — Thu, 04 Oct 2018 15:43:16 GMT

If so, the redemption value is even lower than 4.25% i’d Imagine. Likely 3% or less possibly?

Re: Closed PenFed

UpperNwGuy — Fri, 05 Oct 2018 01:31:39 GMT

PenFed has one good credit card: the PenFed Power Cash Reserve Visa with 2% cash back on everything and an easy to use redemption screen that allows redemptions in $5 increments. Their other credit cards are useless.

PenFed Access America checking is free if you have a direct deposit. On the other hand, the interest rate on their savings accounts is pathetic.

They also have excellent auto loans. And I am hearing that their mortgage loan operation has improved significantly in recent years.

They also have excellent rates on their certificates of deposit.

Overall, I would rate PenFed as one of the better credit unions. I would keep them.

Re: Closed PenFed

SBR249 — Fri, 05 Oct 2018 01:37:00 GMT

Their Pathfinder is pretty decent too. I mean the points scheme isn't too great like many of their other cards. But it's a no-AF card that gives a Global Entry credit and $100 travel credit. That's like a $100 SUB every year just for having the card. That's not bad even if you ignore the points rewards thing.

Re: Closed PenFed

IFtkkdx428 — Fri, 05 Oct 2018 02:40:35 GMT

@UpperNwGuy wrote:
PenFed has one good credit card: the PenFed Power Cash Reserve Visa with 2% cash back on everything and an easy to use redemption screen that allows redemptions in $5 increments. Their other credit cards are useless.

PenFed Access America checking is free if you have a direct deposit.

They also have excellent auto loans. And I am hearing that their mortgage loan operation has improved in recent years.

They also have good rates on their certificates of deposit.

Overall, I would rate PenFed as one of the better credit unions. I would keep them.

The PenFed Power Cash Rewards Visa is competitive, however I have the Citi Double Cash. I'm employed in the banking industry and the employer I'm with provides employees with many beneficial financial products. Mortgage and other home lending is provided to employees with a rate discount and/or $2,500 closing costs waived by employer. PenFed's CD rates are in-line with my employer's CD rates, but that could change after last week's Federal Reserve rate hike. Though this hasn't always been the case. 1-2 years ago, PenFed's rates were terrible compared to what my employer offers. Nobody offers better auto loan rates than credit unions, which is why I mentioned keeping the Regular Savings open.

@SBR249 wrote:
Their Pathfinder is pretty decent too. I mean the points scheme isn't too great like many of their other cards. But it's a no-AF card that gives a Global Entry credit and $100 travel credit. That's like a $100 SUB every year just for having the card. That's not bad even if you ignore the points rewards thing.

The PenFed Pathfinder Rewards American Express Card is also a good product. I had recently acquired a Chase Sapphire Reserve. Which covers any rewards that the Pathfinder Rewards American Express Card would earn.

Re: Closed PenFed

Anonymous — Fri, 05 Oct 2018 13:20:32 GMT

Good for you!

I have seriously considered closing all my PenFed accounts as well. I have been PenF'd enough and have never had a positive experience with them. I recently closed my checking with them, kept the savings with a nominal amount in it, and habe their Power Cash Rewards card which lives in my sock drawer.

I have been a memeber since 2008 and feel they have thrown me in a bucket from which there is no escape.

I need a new credit union; a good credit union and NFCU is out of the question due to a prior bad relationship that developed during my divorce when they "terminated my relationship" with them.

I would love to kiss PenFed goodbye!

Re: Closed PenFed

SBR249 — Fri, 05 Oct 2018 13:38:31 GMT

@Anonymous wrote:
Good for you!

I have seriously considered closing all my PenFed accounts as well. I have been PenF'd enough and have never had a positive experience with them. I recently closed my checking with them, kept the savings with a nominal amount in it, and habe their Power Cash Rewards card which lives in my sock drawer.

I have been a memeber since 2008 and feel they have thrown me in a bucket from which there is no escape.

I need a new credit union; a good credit union and NFCU is out of the question due to a prior bad relationship that developed during my divorce when they "terminated my relationship" with them.

I would love to kiss PenFed goodbye!

So I guess you are PenFed up eh?

What are you looking for in a credit union? I've always had good experiences with First Tech though their card offerings can be a bit underwhelming. They do run a decent saving account bonus every year though (maybe not so spectacular in recent times with the steadily rising interest rates). Don't have a CC with them so can't comment on them as a lender but their customer service has always been pleasant to deal with.

Re: Closed PenFed

Anonymous — Fri, 05 Oct 2018 15:20:54 GMT

I've always thought Penfed was a so-so credit union.

I could never get over some of the stupid things they do there. I just want to use my account and have all of the features available, such as mobile deposit from day one.