topic Re: New PenFed Rewards Card: Best One Yet? in Credit Cards

New PenFed Rewards Card: Best One Yet?

CreditScoreBlueprint — Thu, 01 Mar 2012 23:27:07 GMT

I'm new to the whole rewards thing, and just recently decided to put one in my wallet. Now I just need to decide on which one. It looks like the new PenFed Platinum Rewards Card that was released last month is the best on the market, hands down. Any opinions on that? Note: This card is not the same as the PenFed Visa Platinum Cash Rewards Card.

From what I can tell, you get 5% back on gas, 3% on groceries and 1% on all other purchases. A $250 bonus offer, and no annual fee. They're actually points, not percentages... but each point is worth 1 cent, and points can be redeemed for prepaid Visa cards with no additional fees. So it's basically just as good as cash back.

Any other cards I should be comparing to this one? I know that the Chase Freedom card seems to be pretty popular on these forums, but I don't really see anything special about that card, aside from the initial bonus. It basically looks like 1% back on everything except on special occasions, and even then they have a $1500 cap.

Thoughts?

Re: New PenFed Rewards Card: Best One Yet?

bdp02 — Fri, 02 Mar 2012 00:30:28 GMT

The PenFed Platinum rewards card is a good one. Question that looms out there though is will the point value stay at 1 cent?

Some have said that by going to a pts system it will be easier for PenFed to devalue the points down the road... to combat that, some that have the Cash Rewards card have opted to split their CL in two, with part of the limit going to open a new Platinum Rewards card, while keeping their existing Cash Rewards card open with the remainder of their existing CL.

Another card you can look at is the Amex Blue Cash Preferred (BCP). It gives you 6% Cash Back on Groceries and I think 3% in some other categories...

(note that value chains like Wal-Mart don't count as grocery stores)

My regularly used cards consist of:

PenFed Cash Rewards for Gasoline

Amex BCP for Groceries

Discover More - depending on the active rebate program (typically used when movies and restaurants are on the list)

Chase Freedom - same usage model as Discover

(I'm going to do the split trick with the PenFed card sometime this month, just haven't bothered with making time for that phone call yet)

Re: New PenFed Rewards Card: Best One Yet?

CreditScoreBlueprint — Fri, 02 Mar 2012 00:50:03 GMT

Ahh, that's some good information to know. I actually do 90% of my grocery shopping at Walmart, lol. Does that restriction apply to most cards, or just the Amex? Also, how often do companies devalue points like that? Is Penfed known for this?

I was hoping to find one great rewards card that I could keep with me for a good 10 years. I'm all set with my low APR cards. But from the research I've done, and from what you're telling me, it doesn't look like rewards cards are really meant to be long-term cards.... with new cards coming out all the time, bonuses being offered, and point devaluation. Seems like there would always be something new I'd want to switch to.

Now I'm starting to wonder if I even want a rewards card, lol. I was already on the fence.

Re: New PenFed Rewards Card: Best One Yet?

Anonymous — Fri, 02 Mar 2012 00:55:44 GMT

Just one thing to keep in mind Penfed is very picky. There was a thread recently about people with super credit scores/history getting denied. I was honestly shocked. I guess that's why they have some of the best rewards out there. I think they also do a HP when you join.

Re: New PenFed Rewards Card: Best One Yet?

RyVision — Fri, 02 Mar 2012 01:57:51 GMT

@Anonymous wrote:
Just one thing to keep in mind Penfed is very picky. There was a thread recently about people with super credit scores/history getting denied. I was honestly shocked. I guess that's why they have some of the best rewards out there. I think they also do a HP when you join.

True PenFed is usually very picky. I've read rare instances where some have been approved that normally wouldn't have been though. I usually tell anyone curious that their about the hardest to get a CC from (at least as far as their platinum Cash Rewards card goes).

And they do a HP to join but they usually use that HP for any credit products the person requests for up to 90 days. We're still on the fence here about switching their Platinum Cash Rewards over to the new PenFed Platinum Rewards card they sent a letter and email about (the rewards card this thread is about). The current rewards are cash credited to your statement balance each month, the new rewards would be by points but as mentioned with a bit higher reward structure (gas remaining essentially the same).