topic Re: Downfall of PenFed, Need New CU! in Credit Cards

Downfall of PenFed, Need New CU!

CreditUp26 — Mon, 26 Feb 2024 22:44:57 GMT

I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!

Re: Downfall of PenFed, Need New CU!

7774x — Tue, 27 Feb 2024 00:01:19 GMT

Penfed expanded their membership adding over a 1.2 million new members since end of 2018 .. overwelming their infrastructure to serve members...

Re: Downfall of PenFed, Need New CU!

7774x — Tue, 27 Feb 2024 00:13:13 GMT

Their isn't No Penfed downfall coming recently ....for relatives who got Vehicle loans at half of what rates quoted somewhere else .. even with baddies on their CRs.. and got auto loans approved from Penfed that were denied car loans from other lenders..Credit Cards ?Do What works for you

Re: Downfall of PenFed, Need New CU!

CreditUp26 — Tue, 27 Feb 2024 00:27:43 GMT

@7774x wrote:
Their isn't No Penfed downfall coming recently ....for relatives who got Vehicle loans at half of what rates quoted somewhere else .. even with baddies on their CRs.. and got auto loans approved from Penfed that were denied car loans from other lenders..Credit Cards ?Do What works for you

Looking at some news articles it is their substantial losses with auto loans that may have caused them to have to drive credit card rates up. Who knows. But it's bad.

Re: Downfall of PenFed, Need New CU!

ptatohed — Tue, 27 Feb 2024 00:29:11 GMT

@CreditUp26 wrote:
I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!

You only listed things you don't like about their credit cards. Why do you need to switch CUs? You can get other credit cards elsewhere without switching CUs.

Re: Downfall of PenFed, Need New CU!

CreditUp26 — Tue, 27 Feb 2024 00:34:37 GMT

@ptatohed wrote:
@CreditUp26 wrote:
I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!
You only listed things you don't like about their credit cards. Why do you need to switch CUs? You can get other credit cards elsewhere without switching CUs.

Well this is the...Credit Card forum...so talking about other things is off topic. However, I think what they are doing with the rates is unethical and would prefer a credit union that is more about service than profit if I'm going to be giving them deposits. They also have some of the worst customer service I have ever encountered, that is not new though.

Re: Downfall of PenFed, Need New CU!

Traveler101 — Tue, 27 Feb 2024 00:37:14 GMT

I'm not so sure it's penfed diminishing in value as much as it is the economy taking a downturn. Penfed has not been immune to big losses. I'm sure they are trying what they need to do to remain solvent. Consider the banks that have either failed, or a merger scenario.

While their intrest rate rose, they are still below many mainstream banks.

If you are looking for another cu to serve your credit card needs, perhaps BCU? Anyone can join, just approved for their travel rewards at 16.49 and a CL of 30k.

Just remember it's a sign of the times. While they may have been eary on in changing rates and placing limits, they will not be the last.

Re: Downfall of PenFed, Need New CU!

CreditUp26 — Tue, 27 Feb 2024 00:41:00 GMT

@Traveler101 wrote:
I'm not so sure it's penfed diminishing in value as much as it is the economy taking a downturn. Penfed has not been immune to big losses. I'm sure they are trying what they need to do to remain solvent. Consider the banks that have either failed, or a merger scenario.

While their intrest rate rose, they are still below many mainstream banks.

If you are looking for another cu to serve your credit card needs, perhaps BCU? Anyone can join, just approved for their travel rewards at 16.49 and a CL of 30k.

Just remember it's a sign of the times. While they may have been eary on in changing rates and placing limits, they will not be the last.

Thanks for the BCU refer, I'll look into it. I would say it's a sign of the times but when you have other CUs with rewards cards at 12.5% (Signature FCU), or basic cards at 11.5% (NFCU) it's really hard to see why this was required from PenFed. Also, PenFed charges fees other CU don't like balance transfer fees and the interest for cash advances is higher than the purchase interest.

Re: Downfall of PenFed, Need New CU!

Horseshoez — Tue, 27 Feb 2024 02:04:10 GMT

I've been a PenFed member for about three years, since about a year after my Chapter 13 was discharged, and while I don't think they are the greatest thing since sliced bread, I think they have a lot to offer. Here a few observations, good and not so good, in no particular order:

Last weekend I got a letter from them telling me the interest rate on my credit card with them had the interest rate bumped from 17.99% to, wait for it..., 17.99%; I got a good laugh out of that. Even with this "change" in my interest rate, they still are the lowest of any of my credit cards, which honestly is irrelevant as I don't pay interest.
Their web site is spectacularly mediocre; I can use it, but it isn't at all user friendly.
While I didn't use them for the loan on my new Tacoma, they were the best of any lender I saw with the exception of Toyota Finance.
And finally their interest rate on savings is 3.00%; they pay the highest of any FCU I've seen (granted I haven't looked at them all).

Re: Downfall of PenFed, Need New CU!

CardHunter — Tue, 27 Feb 2024 03:20:14 GMT

@CreditUp26 wrote:
I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!

BCU is your friend. Cheers!

Re: Downfall of PenFed, Need New CU!

Horseshoez — Tue, 27 Feb 2024 08:50:12 GMT

@CardHunter wrote:
BCU is your friend. Cheers!

Hmmm, I just checked BCU's web site, pretty uninspired credit card and savings offerings; I'll stay with PenFed and NFCU.

Re: Downfall of PenFed, Need New CU!

CardHunter — Tue, 27 Feb 2024 10:51:28 GMT

@Horseshoez wrote:
@CardHunter wrote:
BCU is your friend. Cheers!
Hmmm, I just checked BCU's web site, pretty uninspired credit card and savings offerings; I'll stay with PenFed and NFCU.

There's more to a credit union than the products they offer, but to each their own.

Re: Downfall of PenFed, Need New CU!

Horseshoez — Tue, 27 Feb 2024 13:14:29 GMT

@CardHunter wrote:
@Horseshoez wrote:
@CardHunter wrote:
BCU is your friend. Cheers!
Hmmm, I just checked BCU's web site, pretty uninspired credit card and savings offerings; I'll stay with PenFed and NFCU.
There's more to a credit union than the products they offer, but to each their own.

Okay, I'll bite; like what? Customer service? I've needed to call PenFed three times now and each time the representative has been extremely knowledgeable, courteous, and even entertaining.

Re: Downfall of PenFed, Need New CU!

CreditUp26 — Tue, 27 Feb 2024 13:08:30 GMT

@Horseshoez wrote:
@CardHunter wrote:
@Horseshoez wrote:
@CardHunter wrote:
BCU is your friend. Cheers!
Hmmm, I just checked BCU's web site, pretty uninspired credit card and savings offerings; I'll stay with PenFed and NFCU.
There's more to a credit union than the products they offer, but to each their own.
Okay, I'll bite; like what? Customer service? I've needed to call PenFed three times now and each time the representative has been extremely knowledgable, curtious, and even entertaining.

Have found PenFed's customer service to be awful. Condescending, rude and can never seem to do even the most basic functions.

Re: Downfall of PenFed, Need New CU!

Horseshoez — Tue, 27 Feb 2024 13:16:31 GMT

@CreditUp26 wrote:
Have found PenFed's customer service to be awful. Condescending, rude and can never seem to do even the most basic functions.

I guess you're just lucky; I have read any number of accounts here on myFICO of folks talking about how good PenFed customer service was for them.

Re: Downfall of PenFed, Need New CU!

7774x — Tue, 27 Feb 2024 16:04:10 GMT

@Horseshoez wrote:
@CreditUp26 wrote:
Have found PenFed's customer service to be awful. Condescending, rude and can never seem to do even the most basic functions.
I guess you're just lucky; I have read any number of accounts here on myFICO of folks talking about how good PenFed customer service was for them.

Talked to PenFed customer service 4-5 times last 2 years .. always cordial .. going out of their way to provide service

Re: Downfall of PenFed, Need New CU!

Brian_Earl_Spilner — Tue, 27 Feb 2024 16:20:54 GMT

I'm failing to see the downfall. They're not the only ones raising rates and changing processes. Both navy and DCU have done the same and you're singing their praises. I've also never had bad customer service. In fact, out of the 7 credit unions I have they have been one of the nicest and most competent. Currently I use penfed, NFCU, bcu, DCU, sdccu, missionfed, and wings. Sdccu is hands down the worst and I only keep them because they're the largest in my city and county.

Re: Downfall of PenFed, Need New CU!

CreditUp26 — Tue, 27 Feb 2024 16:26:01 GMT

@Brian_Earl_Spilner wrote:
I'm failing to see the downfall. They're not the only ones raising rates and changing processes. Both navy and DCU have done the same and you're singing their praises. I've also never had bad customer service. In fact, out of the 7 credit unions I have they have been one of the nicest and most competent. Currently I use penfed, NFCU, bcu, DCU, sdccu, missionfed, and wings. Sdccu is hands down the worst and I only keep them because they're the largest in my city and county.

Your reply is factually incorrect. Navy Federal has consistently lowered my rate each year and has rates in the 11% range. DCU rates are also substantially lower than PenFed. Navy and DCU rates have only increased with the Prime rate while PenFed has increased overall rates. I believe all PenFed cards are at 17.99%. Further, their customer service is unable to make changes like other CUs. Much better rates at other CUs and customer service there more flexible.

Re: Downfall of PenFed, Need New CU!

Horseshoez — Tue, 27 Feb 2024 16:40:24 GMT

@CreditUp26 wrote:
@Brian_Earl_Spilner wrote:
I'm failing to see the downfall. They're not the only ones raising rates and changing processes. Both navy and DCU have done the same and you're singing their praises. I've also never had bad customer service. In fact, out of the 7 credit unions I have they have been one of the nicest and most competent. Currently I use penfed, NFCU, bcu, DCU, sdccu, missionfed, and wings. Sdccu is hands down the worst and I only keep them because they're the largest in my city and county.
Your reply is factually incorrect. Navy Federal has consistently lowered my rate each year and has rates in the 11% range. DCU rates are also substantially lower than PenFed. Navy and DCU rates have only increased with the Prime rate while PenFed has increased overall rates. I believe all PenFed cards are at 17.99%. Further, their customer service is unable to make changes like other CUs. Much better rates at other CUs and customer service there more flexible.

Much better rates at PenFed for Savings than any of the other CUs you mentioned. As for credit card interest, most credit unions these days are raising the rate up to the max 18% limit for CUs; Navy and DCU will most likely follow suit soon.

Edit: last time I checked DCU, their savings rates were well below 1%, I just checked again and see they now pay 3.5% on their Advantage Savings.

Re: Downfall of PenFed, Need New CU!

CreditUp26 — Tue, 27 Feb 2024 16:40:30 GMT

@Horseshoez wrote:
@CreditUp26 wrote:
@Brian_Earl_Spilner wrote:
I'm failing to see the downfall. They're not the only ones raising rates and changing processes. Both navy and DCU have done the same and you're singing their praises. I've also never had bad customer service. In fact, out of the 7 credit unions I have they have been one of the nicest and most competent. Currently I use penfed, NFCU, bcu, DCU, sdccu, missionfed, and wings. Sdccu is hands down the worst and I only keep them because they're the largest in my city and county.
Your reply is factually incorrect. Navy Federal has consistently lowered my rate each year and has rates in the 11% range. DCU rates are also substantially lower than PenFed. Navy and DCU rates have only increased with the Prime rate while PenFed has increased overall rates. I believe all PenFed cards are at 17.99%. Further, their customer service is unable to make changes like other CUs. Much better rates at other CUs and customer service there more flexible.
Much better rates at PenFed for Savings than any of the other CUs you mentioned. As for credit card interest, most credit unions these days are raising the rate up to the max 18% limit for CUs; Navy and DCU will most likely follow suit soon.

Not a single one of my other credit unions have raised rates that high. It's PenFed, I read big losses occurred last year. Unify still has 9% fixed. Also, there are CD rates at other CUs higher than PenFed.