Downfall of PenFed, Need New CU!

[CreditUp26]

I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!

[7774x]

Penfed  expanded their  membership  adding  over a  1.2 million new  members since end of 2018 .. overwelming their infrastructure to serve members...

[7774x]

 Their isn't No Penfed downfall  coming  recently ....for relatives who got Vehicle loans at half of what rates quoted somewhere else .. even with baddies on their  CRs..  and got  auto  loans approved from Penfed that  were  denied car loans from other lenders..Credit Cards ?Do What works for you

[CreditUp26]

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@7774x wrote:

 Their isn't No Penfed downfall  coming  recently ....for relatives who got Vehicle loans at half of what rates quoted somewhere else .. even with baddies on their  CRs..  and got  auto  loans approved from Penfed that  were  denied car loans from other lenders..Credit Cards ?Do What works for you

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Looking at some news articles it is their substantial losses with auto loans that may have caused them to have to drive credit card rates up. Who knows. But it's bad. 

[ptatohed]

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@CreditUp26 wrote:

I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!

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You only listed things you don't like about their credit cards.  Why do you need to switch CUs?  You can get other credit cards elsewhere without switching CUs.  

[CreditUp26]

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@ptatohed wrote:

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@CreditUp26 wrote:

I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!

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You only listed things you don't like about their credit cards.  Why do you need to switch CUs?  You can get other credit cards elsewhere without switching CUs.  

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Well this is the...Credit Card forum...so talking about other things is off topic. However, I think what they are doing with the rates is unethical and would prefer a credit union that is more about service than profit if I'm going to be giving them deposits. They also have some of the worst customer service I have ever encountered, that is not new though. 

[Traveler101]

I'm not so sure it's penfed diminishing in value as much as it is the economy taking a downturn. Penfed has not been immune to big losses. I'm sure they are trying what they need to do to remain solvent. Consider the banks that have either failed, or a merger scenario. 

While their intrest rate rose, they are still below many mainstream banks.

If you are looking for another cu to serve your credit card needs, perhaps BCU? Anyone can join, just approved for their travel rewards at 16.49 and a CL of 30k.

Just remember it's a sign of the times. While they may have been eary on in changing rates and placing limits, they will not be the last.

[CreditUp26]

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@Traveler101 wrote:

I'm not so sure it's penfed diminishing in value as much as it is the economy taking a downturn. Penfed has not been immune to big losses. I'm sure they are trying what they need to do to remain solvent. Consider the banks that have either failed, or a merger scenario. 

While their intrest rate rose, they are still below many mainstream banks.

If you are looking for another cu to serve your credit card needs, perhaps BCU? Anyone can join, just approved for their travel rewards at 16.49 and a CL of 30k.

Just remember it's a sign of the times. While they may have been eary on in changing rates and placing limits, they will not be the last.

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Thanks for the BCU refer, I'll look into it. I would say it's a sign of the times but when you have other CUs with rewards cards at 12.5% (Signature FCU), or basic cards at 11.5% (NFCU) it's really hard to see why this was required from PenFed. Also, PenFed charges fees other CU don't like balance transfer fees and the interest for cash advances is higher than the purchase interest. 

[Horseshoez]

I've been a PenFed member for about three years, since about a year after my Chapter 13 was discharged, and while I don't think they are the greatest thing since sliced bread, I think they have a lot to offer.  Here a few observations, good and not so good, in no particular order:

• Last weekend I got a letter from them telling me the interest rate on my credit card with them had the interest rate bumped from 17.99% to, wait for it..., 17.99%; I got a good laugh out of that.  Even with this "change" in my interest rate, they still are the lowest of any of my credit cards, which honestly is irrelevant as I don't pay interest.
• Their web site is spectacularly mediocre; I can use it, but it isn't at all user friendly.
• While I didn't use them for the loan on my new Tacoma, they were the best of any lender I saw with the exception of Toyota Finance.
• And finally their interest rate on savings is 3.00%; they pay the highest of any FCU I've seen (granted I haven't looked at them all).

[CardHunter]

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@CreditUp26 wrote:

I have found the recent changes at PenFed to be heartbreaking, they are supposed to serve our veterans but seems to have become a bottom of the barrel credit union. As many have already noted, interest rates have shot up to 17.99% for all cards including their "low interest" Gold Card, you cannot request a credit limit increase without a hard pull, they no longer allow you to move credit between cards, and there are new restrictions on balance transfers. There are actual bank lenders with better rewards and lower interest rates. I'm not sure what changed, I would guess pure greed like everywhere else, but who knows. There are still some credit unions with great rewards and low interest rates, some that come to mind are Signature FCU, Redstone FCU, American Airlines FCU, Visions FCU, NFCU, DCU, etc, you may not qualify for all but likely qualify for some. There is no reason to settle for PenFed at this point. If anyone else has recommended credit unions please feel free to comment with recs!

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BCU is your friend. Cheers!