PenFed - Am I wrong to be disappointed here?

[Life_take2]

HI Fico Fam,

   Let me run something by you and get your take on it.  In June of this year, I thought it would be a good idea to add a second credit union to my arsenal. I had NFCU and wanted to add PenFed as the 2nd credit union. Just good to have that as another relationship.

      I opened a Savings account and applied for the PedFed Gold credit card. I was approved for a 10K SL but was surprised at the offered 15.49% rate (for a non-rewards card with a low APR as its primary feature.). I called in and spoke with the UW dept to see if I could have them reconsider. I was told that my pulled EQ9 was a 756 but that because I had no prior relationship with them, I did not qualify for the lowest offered rate. I was advised to consider waiting 6 months and asking again once I was better established.  That made sense and I could live with that. I went on my way determined to 'win them over'.

       In the last 6 months, in an attempt to be a good PedFed Citizen, I have opened a Checking account and a second savings account with a reasonable balance. Additionally, I have 'fed' my new credit card with consistent but PIF use. Heck, even my score has even gone up 1 whopping point to 757 LOL.  So I was feeling confident in making the request for a lower APR. Today I called to see how my efforts would pay off.  Drumroll.... the answer I was given was "no" <gong>.   After picking my jaw off the floor, I asked why and was told that "PenFed does not offer APR reductions after the account and APR has been established" and that if I wanted to be considered for an APR reduction I could apply for another product or the same product with a lower rate(perhaps).  I asked to speak with a supervisor (wanting to confirm the info I was just given since it was different than what UW told me in June) and while very friendly, he too said the same thing. I voiced my disappointment (which was crushing to him, I'm sure) and then hung up not knowing where to go next. I am disappointed with that policy but I would like to have a business relationship with PenFed.

After that diatribe, here is my question(s).  What is your advice here? 

Would you recommend:

1. Do Nothing- use the Gold Card for the occasional 0% BT offer and let it go at 15.49%.
2. Apply for a different card, PCR perhaps, and expect a better (and evidently burned in stone) starting APR.
3. Send a secure message and see if that has any effect.
4. Ask if they can PC this to a PCR ( if that is even possible) to at least take advantage of some reward structure

Thoughts or am I off for being disappointed here? 

[Anonymous]

I'd recommend all your 1-4 bullets

Honestly, what's wrong with the APR?

You're in NFCU and could pull a lower APR with a NFCU Platinum along with no BT fees, if you really wanted to carry for a long period.

Ultimately, if you wanted to carry a balance, there are better CUs and PLs available for that purpose

[Life_take2]

Thank you and fair point. My disappointment in the rate was only at the fact that both of my NFCU cards are higher CL, reward cards, and sub 12%. Perhaps NFCU spoiled me. LOL

[AverageJoesCredit]

Cant really compare Navy with Penfed or any other CU  LOL. Navy's motto is Our Members First and i believe  it

The thing is with Penfed, the vast majority , even great credit, end up with high apr. I consider them the Chase of CUs in this regards. What the csr told you is correct,  very rare for them to  lower apr. I would just use it for its bt abilty not to carry regular balances. Lower apr cards can be gotten elsewhere

[Life_take2]

Thank you for the responses. Some great points. This is one of the many reasons I love this board, you all are the 'voice of reason' when needed and I appreciate that.

[K-in-Boston]

Definitely don't consider an APR to in any way determine how a lender feels about you.  Most of us like to have low APRs even if we plan and hope to never need them, but fortunately many of us also have other cards with lower APRs or frequent/constant promo and BT offers.  As an anecdote, I have two BOA cards in my signature with credit lines of $90k+ with 20%+ APRs (inherited from MBNA), while I have a very slow growing Discover card  that isn't even half my average limit with an APR in the 12s - in this case, I am definitely feeling more of the love from BOA despite the very high APRs.  Amex, Chase, NFCU, and BECU are my only combos of high credit lines and low APRs.

From posts over the years here, it sounds like the first person you spoke to misspoke.  All data points seem to be "you keep what you were approved for."  So much more goes into an APR than score alone and every lender has their own criteria.

[AverageJoesCredit]

Just to add, its still a good card to have. If anyone can give Penfed a second chance , its me lol, so  if i can, you can forgive their high apr er ness

[Anonymous]

This hasn't always been the case, but anymore, I don't carry a revolving balance, at all, ever unless it is a 0% (or ridiculously low, like 1.99%) intro or BT offer with a long term. I then calculate the fixed, level monthly payments required to pay it off on time - not early. 

So, really, it wouldn't matter, on paper, if the interest rate was 15% or 29.99%. It's more of a feel-good thing knowing I have a low(er) revolving rate, even though I know that double digits are terrible to carry a balance for more than a year or so. 

I use Intro/BT offers (for stuff I want to spread over 12-18 months) and if necessary, tap personal loan options (commonly 3 years, but I've seen 5 year options available) for unsecured, single-digit interest lending. While I rarely use either out of necessity, for me it's a cashflow thing and a "not moving money from savings at any cost" kind of thing. That is, unless my only other alternative is an extortionate revolving rate for a long term. Then I'll pull from savings, lol. 

[FinStar]

---

@Life_take2 wrote:

After that diatribe, here is my question(s).  What is your advice here? 

Would you recommend:

1. Do Nothing- use the Gold Card for the occasional 0% BT offer and let it go at 15.49%.
2. Apply for a different card, PCR perhaps, and expect a better (and evidently burned in stone) starting APR.

Thoughts or am I off for being disappointed here? 

---

Some valuable advice and perspectives already shared upthread.  

Your options are really 1 and 2.  Option 3 will not yield anything fruitful (you've already escalated to a supervisor) and, option 4, is not something they're flexible to do these days.  Prior to their system upgrades, there was a bit of wiggle room with lowering APR and PCs.  But, overall, still a pretty decent CU.

[cashorcharge]

Just to add...PF's "Gold Card" is their "low interest" card...similar to the NFCU Platinum.  No real rewards other than a low APR.  My Gold was approved this year at 7.49% which was their lowest offering at the time.  My PF Power Cash was approved at 14.99%

If you do go for the Power Cash, I hate to say it, but I don't know that the rate would be lower considering their "benefits of each card" with the Gold supposed to be lower APR offering.