New PenFed Credit Card?

[Red1Blue]

I received the same letter.

[RyVision]

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

[Anonymous]

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?

[RyVision]

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.

[Travis-84]

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. 

[Anonymous]

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?!?

[haulingthescoreup]

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.

[Anonymous]

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. 

[Anonymous]

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.

[Cory]

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