topic Re: Choosing between PenFed Platinum Rewards vs Gold in Credit Cards

Choosing between PenFed Platinum Rewards vs Gold

sarux3 — Wed, 18 Nov 2020 16:50:06 GMT

I'm getting ready to apply for an auto refi through PenFed now that I've been a member for over 3 months, and I'm planning to ask them to consider me for a second CC on the same HP (I already have the PCR). I'm leaning toward the Platinum Rewards to reap better rewards on gas and groceries, but I also see more than a few members here apping for the Gold card. Is there anything I'd need to know from an underwriting standpoint in deciding which card to app? FWIW my EQ9 as of 10/13 is 680 (provided by PenFed), and I don't expect it to have moved too much since then.

Re: Choosing between PenFed Platinum Rewards vs Gold

Anonymous — Wed, 18 Nov 2020 16:55:35 GMT

@sarux3 wrote:
I'm getting ready to apply for an auto refi through PenFed now that I've been a member for over 3 months, and I'm planning to ask them to consider me for a second CC on the same HP (I already have the PCR). I'm leaning toward the Platinum Rewards to reap better rewards on gas and groceries, but I also see more than a few members here apping for the Gold card. Is there anything I'd need to know from an underwriting standpoint in deciding which card to app? FWIW my EQ9 as of 10/13 is 680 (provided by PenFed), and I don't expect it to have moved too much since then.

AFAIK, it's really a choice between wanting a (possibly) low purchase APR card with no rewards, or one with rewards but a higher APR. The range for Plat is

13.49% to 17.99% whereas Gold goes to 7.49% to 17.99%. So certainly gold has the potential to be lower, but.....

Re: Choosing between PenFed Platinum Rewards vs Gold

LawStudentCivilis — Wed, 18 Nov 2020 18:09:42 GMT

Personally, I applied for the gold to take advantage of a balance transfer. It is 0% for 12 months for any BT's made between now and March 31st I believe.

Edited to add there is also a one time 3% BT fee.

Re: Choosing between PenFed Platinum Rewards vs Gold

UpperNwGuy — Thu, 19 Nov 2020 02:11:06 GMT

OP, you already have the best card (PCR) in the PenFed lineup. Why bother getting any additional cards that are likely to end up in the sock drawer? If you want gas and grocery rewards, there are better cards out there than the PenFed Platinum Rewards. As for the Visa Gold, it's a balance transfer card, not a rewards card.

Re: Choosing between PenFed Platinum Rewards vs Gold

Aim_High — Thu, 19 Nov 2020 03:56:19 GMT

@UpperNwGuy wrote:
OP, you already have the best card (PCR) in the PenFed lineup. Why bother getting any additional cards that are likely to end up in the sock drawer? If you want gas and grocery rewards, there are better cards out there than the PenFed Platinum Rewards. As for the Visa Gold, it's a balance transfer card, not a rewards card.

@sarux3, the choice is really if your focus on wanting a low APR card to carry balances month-to-month or if you have a high level of spend on gas and groceries where you could take advantage of where the Platinum Rewards card outperforms your Power Cash Rewards. I don't think there's a signficant difference in the underwriting between those two cards.

The Platinum Rewards may not be the absolute best gas and grocery card, but it's a very good card overall, especially in the context of OP's credit profile and the cards he already carries. Keep in mind that he is not asking for the best cards in these categories. He's trying to take advantage of using the loan hard pull while also adding a new card. Also, with his current FICO 8 scores of 644 - 678 and CH-7 BK DC in 2019, he's not in the position to be approved for just any card on the market. He's still rebuilding.

The points on the Platinum Rewards were devalued a few years ago and it's true they aren't worth a full 1% each. Instead, it works out to more like 0.85% per point. That means gas earns 4.25% instead of the apparent 5% and groceries earn 2.55% instead of 3%. But actually that 4.25% on gas, uncapped, and available year-round, is one of the best overall gas cash back cards. With the uncapped rewards, it could be especially useful for anyone who has a heavy gas spend.

Some cards pay 5% but for only one quarter per year:

Discover IT,
Chase Freedom
ABOC (Amalgamated Bank of Chicago)
Nusenda Credit Union

One card pays either 4.50% or 5.25% but you have to have either $50K or $100K in deposits

Bank of America Cash Rewards (with Preferred Reward program)

Some cards are with lenders with restricted membership (AND) spending caps:

People Caring More Credit Union (5% capped at $1K monthly or $12K annually)
Aerospace FCU Platinum Visa Cash Back (5% capped at $7K annually)
Synchrony Sam's Club Mastercard (5% capped at $6K annually and membership fee)
USAA Cashback Rewards Plus AMEX (5% capped at $3K annually)

So the only card without spending caps, deposit requirements, quarterly restrictions, or membership restrictions that pays higher than the PenFed Platinum Rewards on gas is the Abound FCU Platinum Visa (previously Fort Knox FCU). It pays 5% uncapped and unrestricted on gas. But it pays only a base 1% on everything else ... including groceries.

Now 2.55% on groceries is beaten by several cards that earn 3% or even up to 4.4% (which is the maximum amount on groceries that the AMEX's Blue Cash Preferred really earns after subtracting the annual fee, not the full 6%.) But PenFed's Platinum Rewards has no caps on annual spending unlike the $6K on AMEX BCP/BCE. That's only $115 a week. A lot of households need a higher budget for a grocery card to be useful. There's also a ton of cards on the market that highlight how they pay 2% on groceries, including the Bank of America Cash Rewards. But PenFed Platinum Rewards pays higher. So while it's not the best card in the groceries category, it's got solid rewards and is worth a look, especially for someone who has high spend in gas and groceries and wants a simple card lineup.

*Here is a link to a review I wrote recently about the best-earning gas cards and mentioned all of those above plus several others.

https://ficoforums.myfico.com/t5/Credit-Cards/gas-cards/m-p/6105506#M1737863

Re: Choosing between PenFed Platinum Rewards vs Gold

Anonymous — Thu, 19 Nov 2020 13:35:17 GMT

@Aim_High wrote:
Now 2.55% on groceries is beaten by several cards that earn 3% or even up to 4.4% (which is the maximum amount on groceries that the AMEX's Blue Cash Preferred really earns after subtracting the annual fee, not the full 6%.) But PenFed's Platinum Rewards has no caps on annual spending unlike the $6K on AMEX BCP/BCE. That's only $115 a week. A lot of households need a higher budget for a grocery card to be useful. There's also a ton of cards on the market that highlight how they pay 2% on groceries, including the Bank of America Cash Rewards. But PenFed Platinum Rewards pays higher. So while it's not the best card in the groceries category, it's got solid rewards and is worth a look, especially for someone who has high spend in gas and groceries and wants a simple card lineup.

Another good thing about the Platinum vs Amex is that you get the grocery rewards internationally. I remember using it in Italy in 2013 and getting 3 points (which was much closer to 3% at the time), and that was pretty impressive given the cards that were out there.

Re 4.4% for BCP. That's really the figure before they added 6% on streaming. It probably doesn't help that much, but it can be above 4.4%

For 5%, you would need a spend of $9,500 a year, so $3,500 on streaming, which is a lot but probably some do that or get fairly close (just under $300 a month). Now to get 5.9% you would need to spend $89.5K a year on streaming and I'm pretty sure that IS impossible, given the limited number of "allowed" streaming services that qualify!

Re: Choosing between PenFed Platinum Rewards vs Gold

Aim_High — Thu, 19 Nov 2020 19:39:04 GMT

@Anonymous wrote:
@Aim_High wrote:
Now 2.55% on groceries is beaten by several cards that earn 3% or even up to 4.4% (which is the maximum amount on groceries that the AMEX's Blue Cash Preferred really earns after subtracting the annual fee, not the full 6%.) But PenFed's Platinum Rewards has no caps on annual spending unlike the $6K on AMEX BCP/BCE. That's only $115 a week. A lot of households need a higher budget for a grocery card to be useful. There's also a ton of cards on the market that highlight how they pay 2% on groceries, including the Bank of America Cash Rewards. But PenFed Platinum Rewards pays higher. So while it's not the best card in the groceries category, it's got solid rewards and is worth a look, especially for someone who has high spend in gas and groceries and wants a simple card lineup.
Another good thing about the Platinum vs Amex is that you get the grocery rewards internationally. I remember using it in Italy in 2013 and getting 3 points (which was much closer to 3% at the time), and that was pretty impressive given the cards that were out there.

Re 4.4% for BCP. That's really the figure before they added 6% on streaming. It probably doesn't help that much, but it can be above 4.4%
For 5%, you would need a spend of $9,500 a year, so $3,500 on streaming, which is a lot but probably some do that or get fairly close (just under $300 a month). Now to get 5.9% you would need to spend $89.5K a year on streaming and I'm pretty sure that IS impossible, given the limited number of "allowed" streaming services that qualify!

Interesting, thanks for that info about international use on groceries, @Anonymous.

When I quote the 4.4% (without streaming), I realize it can be a little variable but there's really no way to generalize in advance someone's benefit from the streaming services. It will just depend, so IMO it's best to just leave it out but also mention that streaming can tip the calculation and it should be included. The other thing is, to get the FULL 4.4%, you have to spend the FULL $6,000 but not a penny more (or even a penny less.) How many people really do that? If you spend less, you're getting less of the 6% in rewards to offset the AF. And if you spend any more, your earnings just dropped to 1% which tanks your overall return. I imagine AMEX banks on a lot of people taking the "6%" at face value and always reaching for the BCP for groceries without paying attention to whether they are actually earning that amount. For someone to know the value they get from BCP, they have to take time to calculate exactly how much they charged on the card for groceries versus other things, and if they'd be better off with a different lineup. I do know also that for anyone who spends LESS than $3,200 per year on groceries (excluding any additional benefits from streaming), they're better off just sticking with the no-AF Blue Cash Everyday.

You can argue that cards put caps on spending to limit their rewards from abuse, such as the caps on the 5% with rotating category cards, or the caps on gas cards I mentioned above to prevent someone who drives a LOT for work or pleasure from taking unfair advantage of the rewards. But when a card with an annual fee throws in caps on spending at the higher rate, it complicates the picture and requires a consumer to do a lot more due diligence.

On the other hand, a rewards program like the PenFed Platinum Rewards which has no AF and no caps is simple to use, manage, and to see your REAL rewards return. No games. To me, the games that some card language and terms use is intended to be smoke and mirrors to keep many unthinking consumers from realizing they aren't getting what they expected.

Re: Choosing between PenFed Platinum Rewards vs Gold

Anonymous — Thu, 19 Nov 2020 20:56:03 GMT

@Aim_High wrote:
When I quote the 4.4% (without streaming), I realize it can be a little variable but there's really no way to generalize in advance someone's benefit from the streaming services. It will just depend, so IMO it's best to just leave it out but also mention that streaming can tip the calculation and it should be included. T

Yes, that would be fine. But the language used was:

(which is the maximum amount on groceries that the AMEX's Blue Cash Preferred really earns after subtracting the annual fee, not the full 6%.)

and that is really not quite accurate, in theory, subject to maximums on streaming which I haven't calculated, I could get "fairly" close to 6% on groceries+streaming. It's unfair to put all the annual fee burden on groceries without balancing "but you can get 6% on streaming with NO AF!!!!!" Arguing that we can't really know how much people spend on streaming is no different from the other assumptions we make/can include in calculation about groceries, gas, etc.

LTL, to his amazement, standing up for the poor little Amex BCP!

Re: Choosing between PenFed Platinum Rewards vs Gold

sarux3 — Thu, 19 Nov 2020 22:56:48 GMT

Thanks for all the feedback, everyone! Particularly to @Aim_High , who correctly interpreted my intentions for applying relative to my current situation. I was mainly concerned that, were I to reach for the Platinum Rewards instead of the Gold, my credit profile might not meet the UW standards of the rewards card. But it sounds like the UW decision would be roughly the same between the two products, so I'm just going to cross my fingers and aim for the Platinum. I've got a couple weeks before I plan to apply -- gonna pay off the remainder of a personal loan, make another payment on the current auto loan, and pay down a chunk of the promo balance I have running on my DPA (currently at 13% UTIL, going to attempt to bring it to 9%) before the end of the month. Hopefully all of that will goose my scores upward a bit and help secure a lower rate on my DW's Wrangler than the 6.9% Chase gave me for the initial loan, and a second PenFed CC would be icing on the cake going into the holiday season!

Re: Choosing between PenFed Platinum Rewards vs Gold

Aim_High — Fri, 20 Nov 2020 06:14:19 GMT

@sarux3 wrote:
Thanks for all the feedback, everyone! Particularly to @Aim_High , who correctly interpreted my intentions for applying relative to my current situation. ... I'm just going to cross my fingers and aim for the Platinum.

Good luck @sarux3! Keep us informed and let us know how it turns out. The Platinum will be a nice supplemental rewards card to go with your PCR!

Re: Choosing between PenFed Platinum Rewards vs Gold

coldfusion — Fri, 20 Nov 2020 13:06:24 GMT

@sarux3 wrote:
But it sounds like the UW decision would be roughly the same between the two products, so I'm just going to cross my fingers and aim for the Platinum.

In my scan of the thread I didn't see where anyone noted that that the Platinum Rewards card has a $5K mininum SL. As long as you're in a position where they're comfortable extending you another $5K in unsecured credit you are good to go.

In any case, apply for the card that you want.

Re: Choosing between PenFed Platinum Rewards vs Gold

Anonymous — Fri, 20 Nov 2020 13:44:50 GMT

@Aim_High you rock! Your post was very informative and i appreciate it as I'm considering gas and grocery cards for my 1 year mark. Thank you for all the info!

Re: Choosing between PenFed Platinum Rewards vs Gold

sarux3 — Sun, 13 Dec 2020 07:28:22 GMT

Just a quick update to this thread since I did my application earlier this week. The auto refi was declined (and then declined again in recon), but I was approved for the Platinum Rewards VS with a $5000 SL Mixed results, but I'll take it! Unfortunately, I ended up notching two HPs on my Equifax report -- the CSR who was helping me out said that the auto loans and CC products are under different systems, so the CC app couldn't use the HP from the auto loan... which is weird, since he told me the exact opposite when I asked about it prior to having him app for the CC.

Re: Choosing between PenFed Platinum Rewards vs Gold

FinStar — Sun, 13 Dec 2020 07:44:39 GMT

Thank you for the update and congrats on the Platinum Rewards approval @sarux3. Sorry to hear about the loan denial. Typically, since 2 systems are involved for loans and CCs respectively, that's the reason for 2 separate HPs.

Locking this thread as you have been approved for the CC. Feel free to start a new thread in the Approvals forum if you would like to do so.