PenFed Platinum Rewards Application With A Twist

[masspope]

So I applied for the PenFed Platinum Rewards to get the 5x points on gas. Somehow, I was denied that and was counteroffered the PCR at $3.5k which only gives me 1.5% on everything. I'm not even sure if it's a Visa Signature card. It really ruffles my feathers since I opened a bank account and took a hard pull for the Platinum.

I was hoping for $10k or at the very least $5-$10k. $3.5k is pretty small for any major purchase.

I suspect my income may have partly had to do with that, but these are the 4 reasons PenFed mentioned in the counteroffer letter.

• Bankcard High Credit (planning to get rid of a few cards)

• Insufficient Information On or Lack of Mortgage Accounts

• Insufficient Information On or Lack of Credit Union Accounts

• Age of Bankcard Accounts

I'm planning to call them tomorrow and try the recon route. I just thought it was an interesting/unusual situation and wanted to see if you all had any thoughts on it.

Stats:

EQ 784

clean report, no lates, CC's paid off monthly

AAoA 5.3 years, AoYA 8 months, AoOA 7 years

reported utilization under 10%

$19.7k federal student loans, currently in forbearance due to COVID-19, usually on income-based repayment

Income $35k

Current Cards:

Capital One QS $2500 - SD, want to cancel or combine

Discover It $13,700

Chase Freedom Unlimited $1200 - want to SD, cancel, replace

Amex BCE $11,400

Capital One SavorOne $10,000

[AllZero]

---

@masspope wrote:

So I applied for the PenFed Platinum Rewards to get the 5x points on gas. Somehow, I was denied that and was counteroffered the PCR at $3.5k which only gives me 1.5% on everything. I'm not even sure if it's a Visa Signature card. It really ruffles my feathers since I opened a bank account and took a hard pull for the Platinum.

I was hoping for $10k or at the very least $5-$10k. $3.5k is pretty small for any major purchase.

I suspect my income may have partly had to do with that, but these are the 4 reasons PenFed mentioned in the counteroffer letter.

• Bankcard High Credit (planning to get rid of a few cards)

• Insufficient Information On or Lack of Mortgage Accounts

• Insufficient Information On or Lack of Credit Union Accounts

• Age of Bankcard Accounts

I'm planning to call them tomorrow and try the recon route. I just thought it was an interesting/unusual situation and wanted to see if you all had any thoughts on it.

Stats:

EQ 784

clean report, no lates, CC's paid off monthly

AAoA 5.3 years, AoYA 8 months, AoOA 7 years

reported utilization under 10%

$19.7k federal student loans, currently in forbearance due to COVID-19, usually on income-based repayment

Income $35k

Current Cards:

Capital One QS $2500 - SD, want to cancel or combine

Discover It $13,700

Chase Freedom Unlimited $1200 - want to SD, cancel, replace

Amex BCE $11,400

Capital One SavorOne $10,000

---

Personally, I would jump on that offer if I was in your position to salvage that HP inquiry. In general, credit unions look at your income and DTI Debt To Income. PenFed is a great lender. They gave you an alternative instead of a flat out denial. Ultimately, it's your decision.

[Shooting-For-800]

I would not get rid of any cards.

I would take the offer.

Credit union relationships take time.

[AverageJoesCredit]

Everyone knows my journey with Penfed so i wont go into my personal feelings but ive never seen them counter offer an application with another card. Thats a blessing in my book as it could easily have been a hp with nothing to show. Ive seen worse sl so though maybe low for your purpose,  with time it can grow especially now seeing that Penfed is being more liberal with giving credit. 

[cashorcharge]

Agreed with other notes here.  I wouldn't close those accounts you referenced.   Keep them set aside, buy a tank a gas once a month and let them help your aging.  Your first entry with PenFed may not be huge, but you'll likely see greater success over time and potentially quicker increases then the accounts you've mentioned already.

[Anonymous]

If you open a checking account with them and either leave $500 in it or do a $500 direct deposit (which push payments from other banks seem to work), your PCR will become 2% instead of 1.5% and it's one of, if not the best, 2% card. I would take it. 

[M_Smart007]

---

@Anonymous wrote:

If you open a checking account with them and either leave $500 in it or do a $500 direct deposit (which push payments from other banks seem to work), your PCR will become 2% instead of 1.5% and it's one of, if not the best, 2% card. I would take it. 

---

+1

[Meanmchine]

I kinda agree with you in that I would have expected a higher SL. On the other hand, they beat 2 of your 4 open accounts.  Id take the card, open a checking account try for a CLOC on the same HP and collect a 2% back on everyday small purchases

[AverageJoesCredit]

---

@Meanmchine wrote:

I kinda agree with you in that I would have expected a higher SL. On the other hand, they beat 2 of your 4 open accounts.  Id take the card, open a checking account try for a CLOC on the same HP and collect a 2% back on everyday small purchases

---

Penfed is not known to match ones credit limits. The only expectation i can ascertain, wont put personal feelings here lol, is most get the shaft with a high apr. A close friend recently  got the PCR with good young credit, $3.5 limit and yup , 17.99 apr. 

[masspope]

Just wanted to give an update with some details for posterity. (I'm a details-lover.) I called PenFed on Thursday to recon. As reported recently, loan officers don't speak directly with members. An application had to be submitted again for recon. I was told they'll use the same pull, which they did (YMMV), and told that I would be called the next day. The application showed up as withdrawn the same day online. I also got the survey that same day and filled it out.

I was calling them today to see what's up with the application, and then I got a call from them at the same time. lol They wanted to see if I had any additional details on the survey before they send it off to the credit card team. I gave them my spiel. It didn't change anything, but it is what it is. They did say that even though I'm new and starting lower, they review limits from time to time, and a product change might be possible in the future (He says he's seen it before.) but to take that with a grain of salt since policies change.

I'm taking the card for now. Hopefully, I can change the PCR to a Platinum Rewards in the future. Meanwhile, I'll pound sand while missing out on 5x gas points and Visa Signature benefits.  Honestly, I have mixed emotions about the entire thing.

Apparently PCR has a regular Visa, but the Platinum Rewards does not, so it starts at $5k. Not sure why.