topic Re: PenFed woes maybe?! in Credit Cards

PenFed woes maybe?!

pip3man — Mon, 05 May 2025 16:34:39 GMT

I happened to be reviewing my Penfed credit card statement so far for 2025 and noticed that between my February and March statements, they've made changes to their Cash credit limit. It used to be the cash advance limit was set at 100% of the credit limit but now it seems like they've adjusted it down to 20% of the credit limit. Not like I've ever used it before but it was nice to know they were different on that aspect. Between them rolling back the ability to request a credit line increase for almost 2yrs now and much tougher approvals coupled with their glitchy website and mobile app, I feel like they're going through some difficult times internally. Anyone else noticed this?

Re: PenFed woes maybe?!

IaBoy62 — Mon, 05 May 2025 17:15:59 GMT

Just checked.....they changed my cash limit to 20% from March to April statements on both cards. Never used it, but now I would be afraid to.

Re: PenFed woes maybe?!

dfwxjer — Mon, 05 May 2025 18:03:03 GMT

After PenFed removed the ability to request a CLI I cancelled mine. Their website is atrocious, the mobile app not much better, and the card doesn't really provide any meaningful reason to keep it over other, imo better, cards.

Re: PenFed woes maybe?!

AndySoCal — Mon, 05 May 2025 18:33:35 GMT

@pip3man I do not remember seeing where a credit limit and the amount of cash availible is the same limit. I checked my Citi Customer Cash account. The cash limit is 2000 of the availible 11100 credit limit. I also checked one of credit union credit cards and the credit limit and the cash limit were the same limit. I would be happy if credit unions did the same thing as Pen Fed. The thought of some one stealing the credit card and taking the credit limit in cash is not a good thought.

Re: PenFed woes maybe?!

pip3man — Mon, 05 May 2025 18:56:46 GMT

@AndySoCal wrote:
@pip3man I do not remember seeing where a credit limit and the amount of cash availible is the same limit. I checked my Citi Customer Cash account. The cash limit is 2000 of the availible 11100 credit limit. I also checked one of credit union credit cards and the credit limit and the cash limit were the same limit. I would be happy if credit unions did the same thing as Pen Fed. The thought of some one stealing the credit card and taking the credit limit in cash is not a good thought.

@AndySoCal do you have a PenFed account? If you do then go back and look through your statements. Compare any of your past statement with your March/April 2025 you will see exactly what I'm talking about. I been with them for over 10yrs and their cash credit limit has always been the same as the full account limit. I got 3 accounts with them and it was the same across the board, so the changes were recently implemented between March and April. See below:

Re: PenFed woes maybe?!

pip3man — Mon, 05 May 2025 19:01:20 GMT

@dfwxjer I agree with you and I'm only keeping them purely out of sentimental reasons. I've had them for the longest and quite frankly they were one of the few creditors that approved me for an unsecured card few months after my BK7 discharge. They need to fire their entire technology/engineering team and rebuild from ground up IMO.

Re: PenFed woes maybe?!

Gregory1776 — Mon, 05 May 2025 20:08:28 GMT

@dfwxjer wrote:
After PenFed removed the ability to request a CLI I cancelled mine. Their website is atrocious, the mobile app not much better, and the card doesn't really provide any meaningful reason to keep it over other, imo better, cards.

Same boat. If it (and the overdraft account) weren't 2 of my oldest, I'd close my accounts. Still have a loan until the end of next year, then I may close all the accounts or get another SSL if I cannot get one at a local CU that will grant me the option of a loan reporting for several years.
Doesn't cost me anything but account age...

The app is terrible. The process for making payments on the credit card is so bad. Could be much quicker. Little things like that irritate me.

Re: PenFed woes maybe?!

Patient957 — Mon, 05 May 2025 20:54:30 GMT

SSL is the only reason to have PenFed now. I opened my SSL last June, and I was thinking about apping for at least on of their credit cards. But their system has been so glitchy that I really don't trust them so much anymore.

Their system won't make scheduled SSL payments from my Penfed accounts. I can schedule the payments, but they don't go through. I just get a monthly letter saying funds aren't available for a $2 payment, lol. They can't figure out why. I have to make payments from an external account.

Add to that no CLI requests, and I'm out. I'll keep my SSL but that's it. Unless or until they improve, which I don't see happening anytime soon.

Re: PenFed woes maybe?!

AndySoCal — Mon, 05 May 2025 22:51:07 GMT

@pip3man I am not a member of PenFed. I used State Department FCU The cash availible limit was the same as the credit limit. Langley is currently 50% of the credit limit. I would prefer the lower limit on cash.

Re: PenFed woes maybe?!

creditrizz — Mon, 05 May 2025 23:13:24 GMT

@dfwxjer wrote:
After PenFed removed the ability to request a CLI I cancelled mine. Their website is atrocious, the mobile app not much better, and the card doesn't really provide any meaningful reason to keep it over other, imo better, cards.

Penfed's website and apps are so **bleep** frustrating. I gave up on even doing 6 month maintenannce transactions with their cards since even thinking about having to use the website to pay the cards gets me annoyed lol. If they drop my limits I'll just close them. They've really done a good job over the past year with giving their customers every reason not to want to transact with them.

Re: PenFed woes maybe?!

dfwxjer — Tue, 06 May 2025 13:00:41 GMT

@creditrizz wrote:
@dfwxjer wrote:
After PenFed removed the ability to request a CLI I cancelled mine. Their website is atrocious, the mobile app not much better, and the card doesn't really provide any meaningful reason to keep it over other, imo better, cards.
Penfed's website and apps are so **bleep** frustrating. I gave up on even doing 6 month maintenannce transactions with their cards since even thinking about having to use the website to pay the cards gets me annoyed lol. If they drop my limits I'll just close them. They've really done a good job over the past year with giving their customers every reason not to want to transact with them.

Yeah it certainly seems like they're actively trying to reduce their credit portfolio. My account sat at $17,500 CL for years and it was my lowest limit, on a card that doesn't really add much value other than average cash back rate. I closed it to beat them to the punch lol.

Re: PenFed woes maybe?!

AndySoCal — Tue, 06 May 2025 13:31:22 GMT

The only time the cash limit comes into play is if you use your credit card to get cash advance. The interest rate usually very high. All my credit card companies could set the limit to zero and I would not care.

Re: PenFed woes maybe?!

pip3man — Tue, 06 May 2025 14:19:41 GMT

@AndySoCal wrote:
The only time the cash limit comes into play is if you use your credit card to get cash advance. The interest rate usually very high. All my credit card companies could set the limit to zero and I would not care.

Not necessarily, I've never had to take out a cash advance but I liked the fact that their cash limit was the same as the credit limit. Unlike other credit issuers, their APR for cash advance and purchases are set at the same interest rate. The only difference being no grace period on the former which is pretty standard. So for anyone who uses cash advance that could be a big deal because this is exclusive to PenFed since I'm not aware of any other institution that does that. @AndySoCal

Re: PenFed woes maybe?!

AndySoCal — Tue, 06 May 2025 17:13:00 GMT

@pip3man My State Department Cash Limit = Credit Limit, Langley FCU cash limit is 50% of my credit limit. Footnote to SDFCU my cash limit is reduced by the balance on the card.

Re: PenFed woes maybe?!

NoMoreE46 — Tue, 06 May 2025 17:21:55 GMT

fyi -this is a relevant thread from 2023:

https://ficoforums.myfico.com/t5/Credit-Cards/Can-we-get-DPs-for-Cash-Advance-CA/td-p/6663143/page/2

Re: PenFed woes maybe?!

FicoMike0 — Wed, 07 May 2025 20:33:33 GMT

I applied for their pathfinder card, one of the reasons quoted in their rejection letter was my fico9 score of 850!

I still did a ssl with them. $2100 for 84 months. Got the score boost right away. App is a little slow, but it does work. The app gives my fico8 score as 850, but doesn't say which one.

Re: PenFed woes maybe?!

crystal626 — Thu, 08 May 2025 18:20:12 GMT

This isn't surprising. We will see more and more tightening as the economy starts heading over a cliff. In the 2008 financial crisis a lot of people had their cards straight up closed even if they were in good standing as the banks re-evaluated what risk they were willing to hold on to. Credit cards are great for banks in good times but in downturns, people tend to turn to credit cards even if they can't repay them and a lot of them end up in bankruptcies later.

Re: PenFed woes maybe?!

LivingTheAmericanDream — Mon, 12 May 2025 22:44:49 GMT

Agree on the website, app, and overall technology. But they do credit a payment MUCH faster than NFCU, which drags their feet. I pretty much stopped using my PenFed CC and they dropped by CL by $1,000. Fortunately, I don't need the additional credit but, like many, there was a time when the additional $1,000 was meaningful.

As an aside, last year purchased a new car: checked w/PenFed, NFCU, Citi, Chase and the dealer. Went w/dealer financing but PenFed offered the lowest loan amount and was among the highest in rates.

Re: PenFed woes maybe?!

toddc — Thu, 29 May 2025 06:57:43 GMT

I haven't seen anyone get an approval or anything on the board here for PenFed in quite some time. I opened a gold card with them because it was all they would give me, for the balance transfer. Then they removed allowing balance transfers, and CLI. I'm about to pay off the remainder of my balance transfer and then this card will do what it's been doing since it was opened sitting in my sock drawer for eternity. There's no rewards, interest is 18%, can't do CLI/Balance transfer anymore, will leave it dormant until they decide to close it I guess for inactivity. Their website is the absolute worst. Maybe after the First Tech and DCU merger goes through (this summer?) they can merge with PenFed and give us all a better user experience.

Re: PenFed woes maybe?!

creditrizz — Fri, 30 May 2025 06:52:20 GMT

Anyone seen reports of them reducing limits on unused cards again recently? Was wondering if it was just a one-time thing where they made a large cut to their exposure. If they're still doing it, I think I'll close my 2 cards with them before they reduce the limits on them. I don't really feel like having two more cards to rotate for small purchases every few months as I already have a few too many that i want to keep alive - and I don't want the better issuers of mine to get spooked when they see CLI's