topic Re: PENFED Reward Change in Credit Cards

PENFED Reward Change

Anonymous — Fri, 16 Aug 2013 20:10:42 GMT

Hi all,

So I just signed on to my penfed reward site today to check out point balance - and discovered that they have changed the cash rewards. It is no longer 1% equivalant for the point CC. Instead, you need 6,100 points for $50, 12,000 points for $100, 29,600 for $250 and $59,000 for $500.

Also, gift cards have gone up - 3,000 points is (generally) a $25 gift card.

So I'm pretty peeved right now, especially since I was holding on to the points for "just a bit longer" to save them to get to what I have now and BAM, they change it!

So beware everyone! If you aren't picky, they still have "hot deals" that will be better... ie, right now there's a Gap $25 card for 2,400 points and a Regal movie thing - two tickets for 1,700 points (ie, about $8.50 - no VIP use).

Also, as a new note, since my PenFed AND USAA CC are no longer worth 1% (at least at resonable spending levels), what card would be good?

Spending profile:

~$300 per month on gas (max)

~$400-500 per month on groceries (max)

~$50-200 per month on misc (usually restaurants, some movies, some other stuff - this is the fun catch all category)

Occasionally, we'll travel (usually by plane) but that's a once a year type thing. Some Amazon shopping, although not a lot. Not a ton of music buying and we are past the textbook age. We have no kids. We also have little income, hence the smaller spending limits. Thoughts? We have GREAT credit, but low income as I am a grad student and DH is on a 1 year appointment for teaching but with a really low salary.

Re: PENFED Reward Change

sccredit — Fri, 16 Aug 2013 20:17:46 GMT

Looks to me like BCP

Re: PENFED Reward Change

b_seeker — Fri, 16 Aug 2013 20:53:10 GMT

If you guys are on a limited budget and don't want an annual fee, BCE or Sallie Mae MC from Barclays.

I like the Sallie Mae because you get 5% on gas (Up to $250 per month), 5% on groceries ($250 a month) and 5% on bookstores ($750 a month, is supposed to include Amazon). So your spending on gas and groceries are higher then the max you can earn this month but you still would get 1% on the rest.

In order of the rate at which rewards you would earn, if I did my math right, would be BCP(Even with AF), Sallie Mae, BCE. So it depends on how you feel about AFs. (I used your high number in your ranges and did not give anything more then 1% for the "Other")

Re: PENFED Reward Change

Anonymous — Fri, 16 Aug 2013 20:55:40 GMT

Wow, thanks for pointing that out, no notice from Penfed. About two weeks ago I redeemed 5,000 for a $50 debit card, now it would take 6,100. I suspected something would happen with the release of the Visa Sig version, but I expected some notification!

So based on this cash-like redemption, you would spend $1,220 on gas to get the 6,100 points to redeem for $50, so it's now a 4.09% card.

Those with Cash Rewards version, has that changed?

Re: PENFED Reward Change

OnTheRebound — Fri, 16 Aug 2013 21:12:26 GMT

Yes. Cash Rewards here. Thought I had $120. Only now it's $100.00. I'm PO'd.

ETA: No notification

Re: PENFED Reward Change

Exonumist — Fri, 16 Aug 2013 21:12:50 GMT

@Anonymous wrote:
Wow, thanks for pointing that out, no notice from Penfed. About two weeks ago I redeemed 5,000 for a $50 debit card, now it would take 6,100. I suspected something would happen with the release of the Visa Sig version, but I expected some notification!

So based on this cash-like redemption, you would spend $1,220 on gas to get the 6,100 points to redeem for $50, so it's now a 4.09% card.

Those with Cash Rewards version, has that changed?

As far as I can tell Cash Rewards are still the same. Although my last statement closed about a week ago.

Re: PENFED Reward Change

Anonymous — Fri, 16 Aug 2013 21:58:12 GMT

Just called PFCU and closed my Visa with them. Had them move that credit line to my Defender Amex.

This is not good, although I dont blame them much if it wasn't making money.

I had the original cash rewards about three years ago. Went from 5%/1.25% to 5%/1%, than 5%/.25%, than 5/3/1 point system, now this crap. I'll use my BoA 3.3/2.2/1.1 cash card over this POS point card now. And my BCE. Fairwell Visa Plat Cash Reward card!

(I still have my PFCU Defender AMEX for %0 FTF, and if I absolutely need an EMV card I can get one from USAA!)

My personal credit card motto - "If I don't use it, I lose it!"

Re: PENFED Reward Change

Anonymous — Fri, 16 Aug 2013 22:04:42 GMT

@Anonymous wrote:
Just called PFCU and closed my Visa with them. Had them move that credit line to my Defender Amex.

This is not good, although I dont blame them much if it wasn't making money.

I had the original cash rewards about three years ago. Went from 5%/1.25% to 5%/1%, than 5%/.25%, than 5/3/1 point system, now this crap. I'll use my BoA 3.3/2.2/1.1 cash card over this POS point card now. And my BCE. Fairwell Visa Plat Cash Reward card!

(I still have my PFCU Defender AMEX for %0 FTF, and if I absolutely need an EMV card I can get one from USAA!)

My personal credit card motto - "If I don't use it, I lose it!"

Did you have the Platinum Cash Rewards (cash back) or the Plat Rewards (points)? Want to see how they are handling the cash back stuff!

But time to move my speedpass to TYP for now...

Re: PENFED Reward Change

Anonymous — Fri, 16 Aug 2013 22:08:14 GMT

I had the original cash rewards card, long before this points card came out.

When they switched I switched with it, thinking 5/3/1 was a great deal... This was the third round of devaluation on my card. I had the Platinum Rewards Card (point)

Now today's news, I'm reading alot of different personal finance sites and everyone is outraged. I wasn't using this card anymore so I just cut it.

Re: PENFED Reward Change

Anonymous — Sat, 17 Aug 2013 00:30:13 GMT

I agree. Ridiculous that they gave no notice of point change. Even the rewards website has incorrect info still. Claims visa gift cards as cheap as 5000 points.

Re: PENFED Reward Change

SnackTrader — Sat, 17 Aug 2013 00:38:13 GMT

So glad that I didn't get this card.

Also, without notification I think you all have good reasoning for some complaints. I would be writing letters to PenFed, NCUA, and maybe even CFPB.

Re: PENFED Reward Change

Anonymous — Sat, 17 Aug 2013 00:47:56 GMT

I guess any card that has unusually good rewards is going to get nerfed sooner or later. Currently this is still 4.1% or so (depending on redemption) on gas, which is still better than most, but any downgrade gives a very negative impression. I'll just use my TYP for now, and see what happens to the Penfed Cash Rewards card.

Re: PENFED Reward Change

Anonymous — Sat, 17 Aug 2013 03:10:05 GMT

If we were all locked up in PFCU prison, I would lead the prison break and free you all. I would be the one who said follow me, we are going to be free!

Re: PENFED Reward Change

DaveSignal — Sat, 17 Aug 2013 06:53:16 GMT

Hopefully, something new will come out with the best rewards for the best credit. I am glad that I saw this thread yesterday though, because it saves me a hard inq and probable denial for one of the most prudent lenders... only for the chance to get a card that has been consistently downgraded.

I wonder if PenFed will change their underwriting criteria since their card has lost much of its appeal and is no longer outrageously awesome.

Re: PENFED Reward Change

Anonymous — Sat, 17 Aug 2013 12:57:38 GMT

If a rewards are redeemed for a larger amount gift card then you need 11800 points for $100 gift card

This results in a cash back percentage from earlier 5% to 4.24 %.

Re: PENFED Reward Change

yellowcake — Sat, 17 Aug 2013 13:15:15 GMT

This is disapointing. I got the Penfed Platinum Rewards card earlier this year and used it for all my gas purchases. I also have the chase freedom and discover it, I guess they'll be getting out of the sock drawer more often than I expected.

Re: PENFED Reward Change

takeshi74 — Sat, 17 Aug 2013 13:16:18 GMT

@Anonymous wrote:

Those with Cash Rewards version, has that changed?

Doesn't look like it. My statement cut yesterday and it's still 5% on gas.

Re: PENFED Reward Change

yellowcake — Sat, 17 Aug 2013 13:23:48 GMT

Does penfed let you pc to the cash rewards card?

Re: PENFED Reward Change

Anonymous — Sat, 17 Aug 2013 14:42:58 GMT

@yellowcake wrote:
Does penfed let you pc to the cash rewards card?

I plan to wait for a bit before trying. If 5% off gas is unsustainable on one card, I would expect some change in Cash Rewards at some point.

Re: PENFED Reward Change

kevinjjc — Sat, 17 Aug 2013 15:10:47 GMT

Wow!!! This is really bad news. Thanks for posting this. I'm glad I stayed with the PenFed Platinum Cash Rewards Visa card. Hopefully they won't nerf the 5% cashback on gas.