topic Re: New PenFed Credit Card? in Credit Cards

New PenFed Credit Card?

Anonymous — Thu, 29 Dec 2011 19:33:11 GMT

Anyone else just get this in the mail? I have a Platinum Cash Rewards card and got a letter that talks about a few things:

1) My APR is being lowered from 13.99% to 9.99%

2) Non-gas purchases are changing from 1% rebate to 0.25% rebate effective 2/1/12

3) They are announcing a new credit card called "PenFed Platinum Rewards Card"

a) 5 points per dollar on gas purchases

b) 3 points per dollar on supermarket purchases

c) 1 point per dollar on all other purchases

According to the paper, you can do a PC from Cash Rewards to this new card (so no new pull or anything) and is also subject to a rewards bonus for switching! I'm a little unsure why they are wanting people to move away from Cash Rewards, only thing I can think of is 1 point does not equal 1 cent so it is cheaper for them...but I will be looking into it and updating this post. For more information, you can visit - http://www.penfed.org/morerewards

Re: New PenFed Credit Card?

OnTheRebound — Thu, 29 Dec 2011 22:42:02 GMT

My apologies. I didn't see your post when I posted.

Re: New PenFed Credit Card?

RockinRay — Thu, 29 Dec 2011 22:46:09 GMT

While we have yet to receive this mail from PenFed, I am not sure how I feel about it. I really like the 5% gas rewards and that is what we use the current card for.

I wonder if they are going to "force" this change - and - how do you all feel about the rewards? Better / worse / ???

Ray

Re: New PenFed Credit Card?

UFGuy2006 — Thu, 29 Dec 2011 22:57:28 GMT

@RockinRay wrote:
While we have yet to receive this mail from PenFed, I am not sure how I feel about it. I really like the 5% gas rewards and that is what we use the current card for.

I wonder if they are going to "force" this change - and - how do you all feel about the rewards? Better / worse / ???

Ray

I just read the letter. Interesting... I think I'd prefer to stay with my 5% cash on gas (only use the card for that) than switching to a point based system like every other card.

Re: New PenFed Credit Card?

RockinRay — Thu, 29 Dec 2011 22:59:35 GMT

+1 - I fully agree.

We have three cars here and we usually see a rebate of $22 to $32 per month. That is big in my book.

Ray

Re: New PenFed Credit Card?

Odiseous — Thu, 29 Dec 2011 23:19:49 GMT

@Anonymous wrote:
Anyone else just get this in the mail? I have a Platinum Cash Rewards card and got a letter that talks about a few things:

1) My APR is being lowered from 13.99% to 9.99%
2) Non-gas purchases are changing from 1% rebate to 0.25% rebate effective 2/1/12
3) They are announcing a new credit card called "PenFed Platinum Rewards Card"
a) 5 points per dollar on gas purchases
b) 3 points per dollar on supermarket purchases
c) 1 point per dollar on all other purchases

According to the paper, you can do a PC from Cash Rewards to this new card (so no new pull or anything) and is also subject to a rewards bonus for switching! I'm a little unsure why they are wanting people to move away from Cash Rewards, only thing I can think of is 1 point does not equal 1 cent so it is cheaper for them...but I will be looking into it and updating this post. For more information, you can visit - http://www.penfed.org/morerewards

This should be interesting. I just faxed in my income verification this morning, for the Platinum Cash Rewards card.

Right now, this offer seems to only be open to existing Platinum Cash cardholders. The advertisement also seems to indicate it should be *more* rewarding. I'm guessing they are referring to the 3 points at supermarkets. Note: The website doesn't mention the reduction of the value for 'everything else' from 1%, to 0.25%. But, that's to be expected.

Also, based on the wording of the offer on the website" "Plus, you can jumpstart your rewards by earning 5,000 points the very first time you use your card and another 20,000 points when you spend $1,000 within the first 3 months. That's $250 that you can use toward merchandise, gift cards, and other rewards."; it still seems to be a 100:1 ratio (1 point = 1 cent) for points earned.

This tends to make me think the main difference, is that you're trading in the cash back deposit in; for an extra 2% on supermarket purchases, that you can only use for rewards (GCs, merchandise discounts, etc); and an extra .75% on non-gas/supermarket purchases.

It certainly sounds like a better deal (if you are willing to play the points game), and you also use the card for supermarket/everything else categories. However, if you only use the card for Gas (like I plan to, as I have AmEx for supermarkets), is seems like a downgrade.

Re: New PenFed Credit Card?

RyVision — Fri, 30 Dec 2011 03:50:45 GMT

Can't say I love the idea. I have never liked the idea of reward points. Just adds to the hassle. Did they suddenly hire Peggy? With the XR points from USA Prime Credit?

Have not received the letter as of yet. Maybe AMEX BCP is possible if needed....... More and Freedom have 5% quarters. Both include gas at different times as well.

Sometimes I wonder if the CCC's don't get together and discuss how to keep us all a bit confused about our "reward" programs.

Thank you for the heads up to watch for this information and the link as well.

Re: New PenFed Credit Card?

Heavy-Handed — Fri, 30 Dec 2011 11:16:24 GMT

I'm sticking with my Cashrewards Card especially now that they have lowered the Apr to 9.99% (rate locked until June 2014). I was never a big fan of the 13.99% even though still low relative to Prime Cards from major banks. Rewards coupled with Single digits APR's always appeal to me.

Re: New PenFed Credit Card?

RyVision — Fri, 30 Dec 2011 15:58:54 GMT

Update:

Just got the letter about the Cash Rewards Platinum changes. Looks like we don't have to switch if we don't want to. As for BT's, NFCU is much better with promos.

Well, here's the letter (edited of personal info of course)

Re: New PenFed Credit Card?

RockinRay — Fri, 30 Dec 2011 16:12:26 GMT

Thanks for posting this - good to know.

I will stick with my current card for now as I really like the 5% gas. And, we really do not use the card for anything else.

Ray

Re: New PenFed Credit Card?

Red1Blue — Fri, 30 Dec 2011 16:21:39 GMT

I received the same letter.

Re: New PenFed Credit Card?

RyVision — Fri, 30 Dec 2011 16:23:25 GMT

Well, was not intending to switch at all if it could be avoided. Then I noticed they'll allow the points to be converted to VISA pre-paid gift cards that can be used wherever VISA is accepted. So with the bonus 250, I have to admit to being on the fence about it now. I'll have to see more details before going the points route though... Does sound like it's worth considering though now with the 250, being it would be like getting cash back anyway, just not instant statement credit.

Dang, the older I get the more I have to examine any changes

Re: New PenFed Credit Card?

Anonymous — Fri, 30 Dec 2011 20:17:48 GMT

Sigh - I wish they wouldn't mess with success!

So is anyone switching? From what I've read here and elsewhere...you can't get the pre-paid visa until you have $100 in rewards - at 1000 points = $1, that means spending $10,000!!

If I switched, and got the $250 bonus, that would be equivalent to around 4 years of spending at my rates.....however, that would mean 8-10 YEARS before I'd get any cash back from them with the points!

So if I just stay with the 5% for gas and go back to something else for everything non-gas related, I lose out on $250 but I keep getting 5% every month. Choices choices...

Anyone else have thoughts?

Re: New PenFed Credit Card?

RyVision — Fri, 30 Dec 2011 21:55:01 GMT

What Peach mentioned, the 10,000 points before you could redeem for a pre-paid visa, would be the exact detail that would prevent me from switching.

Sort of seems to me PenFed is messing with the program that had so many people interested in their hardest to get card. They might have, in a sense, thrown the Platinum Cash Reward in the trash by turning it into a regular points card.

Who's going to risk a HP reaching for the top shelf only to get slapped, when they can get better rewards elsewhere without having to reach so high?

Oh well, at least it seems we don't have to switch if we'd rather not.

Re: New PenFed Credit Card?

Travis-84 — Fri, 30 Dec 2011 22:37:00 GMT

I just got off work and got the letter. If its true that you need 10.000 points to redem rewards, that is just stupid. I really don't see the logic in all this.

For the last year, I have put 95% of my spending on my penfed card, and paid it off every month. I would assume that I'm considered a good customer, and probably make them at least a bit of profit. If they cut my cash back down to .25%, I'll find another card to use. Then if I only put gas on my card, my spending with them will drop 90%. Plus, I would assume they are not charging merchants 5%, so If I get 5% cash back on all gas purchases, and thats all my spending, I would have to assume I am no longer a profitable customer.

I agree that they should not have messed with it. I'll be doing some research, and I might be opening another card elsewhere. My logic right now is to switch to the new program, take the 250.00 bonus, and once I get the bonus, to cancel the card. Then if I switch to the Blue Cash from American express, I'm just as well off, I loose 3% in gas, but I gain it in groceries (and my spending habbits are similar in both categories.

Re: New PenFed Credit Card?

Anonymous — Sat, 31 Dec 2011 03:01:11 GMT

When I called and spoke to a rep, she stated that there was no minimum amount of points needed to redeem for a gift card, I sure hope she wasn't mistaken. I, like many, strictly use the cash rewards card for gas - however I still switched. The $250 switch bonus was too good for me to pass up, I still get 5% "cash back" in the form of points...plus an additional $250, how could that be a bad thing?!?

Re: New PenFed Credit Card?

haulingthescoreup — Sat, 31 Dec 2011 03:12:27 GMT

I'm guessing that they're responding to all of those who got the Visa Plat (aka, the "gas card") back when it was 5% gas, 2% grocs, 1.25% everything else, all cash back.

This new card is going with points instead of cash back, and points and my brain just don't work together at all. Plus, I've got 6% back on the AmEx BCP, so I'm not tempted.

But I can see a market for this new card --people who like points cards, like the 3%-ish bit on groceries without a fee, and so forth.

I'm just hoping that it's an addition to the line, and not a replacement. I'd say that they're paying out a lotta bucks for cashback, and they might be getting worried.

Re: New PenFed Credit Card?

Anonymous — Sat, 31 Dec 2011 19:04:34 GMT

Well It wouldn't be 1000 points = $1. It would be 100 points = $1. But you wouldnt need to spend $10,000, unless you are only using the card for non-gas and non-grocery purchases.

At a conservative $250/mo gas and $300/mo groceries, you would net:

250x5 = 1250

300x3 = 900

Total: 2050 points.

That means you could redeem $100 after about 5 months. Sooner if you spend more/throw random other purchases on there.

I think the rewards are actually pretty nice, assuming they stick to 1pt = 1cent.

Re: New PenFed Credit Card?

Anonymous — Sun, 01 Jan 2012 18:29:08 GMT

To everyone wondering, I was able to get official answer from PenFed regarding when the $1000 minimum spending starts...if you requested to switch ahead of time, the spending clock starts 1/28/2012 when the new card is launched and your card actually switches.

Re: New PenFed Credit Card?

Cory — Sun, 01 Jan 2012 19:00:47 GMT

Well,

I did the switch. I didn't like when they did away with the 2% on supermarket purchase. So this card works great for me. Penfed seems to offer the best balance transfer them anyone else, no? I think for now.

Cory