Update (Applied PLOC): 2nd PenFed Card vs PLOC

[PNW_Hunter]

I recently applied for a CLI using the PenFed button on the accounts page for my Cash Rewards Gas Card. I was approved to go from $11,000.00 to $15,500.00 using a HP.

Since PenFed lets you use the same HP for credit products within 90 days, most of the time atleast, do you guys think it would be more beneficial to apply for a PenFed Amex/Promise cards or a PLOC?

The Promise card has no cash advance fee and a 7.99% APR potentially, which is lower than I could borrow against a PenFed PLOC at. Also no FTF, or fees for pretty much anything.

Couldn't I theoretically just withdrawl cash at an ATM, subject to the normal $500 withdrawl limits, and this card could serve as a roundabout PLOC with no check writing capabilities?

The Amex gets 5 points/$, which is a nice return it seems like. I just feel like at some point I might want to get a travel card such as the Amex SPG or some points/program based card. I do a good amount of traveling, however.

I could also just head to the garden as I will probably be applying for an auto loan next year and I've only been establishing credit for 5 years now.

Current Lineup:

Amex BCP: $25,000

Chase Freedom: $25,000

PenFed VISA Cash Rewards: $15,500

Discover IT: $12,000

CapitalOne Quicksilver: $7,750

Any input is much appreciated and I'm open to any other cards that you see I could benefit from, but am leaning PenFed so I dont burn another HP.

Thanks!

[Anonymous]

I don't know too much about the Penfed Amex but have heard the points may be devalued at any time (referenced thread: http://ficoforums.myfico.com/t5/Credit-Cards/PenFed-Credit-Card/td-p/3723479/page/2)

I have a PLOC and applied for one when I opened my checking account with Thrifty overdraft line of credit along with a CLI of $1,000 on my Penfed Cash Rewards all in one HP. 

I say you have nothing to lose if you decide to apply for another credit account with Penfed. They obviously like you since they gave you a CLI of $4,000. 

Although I have never done a cash advance, I would think it is frowned upon on a credit card even if there is no fee associated with the transaction? Also, even though there are no check writing capabilities, you could always withdraw cash from the card at an ATM, deposit into a checking account, and use your checking account's checks. 

[Andy77]

Here is my experience with Penfed and taking cash off their cards.  They don't care.  I have had their Amex and have taken 6k ...just transferred the money from the card to my Penfed checking then to my personal checking at another bank.

The cash interest rate was 9.9 %.  With that said though, I paid back the card over a few times and have, as far as I know a good relationship with them.

I love the fact that you can easily get to the cash if you need it and the interest rate, at least for me is low...

[PNW_Hunter]

Thanks, Andy and sweetdreams.

I think I am leaning towards the Amex Travel.

Even though the points are devalued to 4.2%, I believe, I do purchase a good amount of flights.

Given that I can withdrawal the cash from the card if needed at the same APR as purchases, I think that makes a lot of sense.

I am now leaning away from the promise because i have the lowest APR on my cash rewards card (9.9%), so what is an extra 2% savings in all reality?

The Only advantage I can think of is if I need to write a check for a couple grand on the spot, but don't have it in my bank account for some reason

[Gmood1]

I did something similar after applying for a Cash Rewards. They gave me the Amex on the same pull a couple of weeks later. I haven't used the Amex Travel yet. I'll probably use it for travel around Christmas. I use the Cash Rewards at least twice a week on gas. Go for it, it's not going to cost you another HP. I personally don't have a use for the PLOC. Just not big on the cash advances or borrowing cash in general. I considered also using the same HP on a auto purchase. Just haven't followed through with it.

[PNW_Hunter]

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@Gmood1 wrote:

I did something similar after applying for a Cash Rewards. They gave me the Amex on the same pull a couple of weeks later. I haven't used the Amex Travel yet. I'll probably use it for travel around Christmas. I use the Cash Rewards at least twice a week on gas. Go for it, it's not going to cost you another HP. I personally don't have a use for the PLOC. Just not big on the cash advances or borrowing cash in general. I considered also using the same HP on a auto purchase. Just haven't followed through with it.

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How do you feel about the Penfed Points rewards site?

Are there pretty good options for redeeming the points? I am just concerned ill get stuck redeeming my points for some gift card I dont really want, etc...

[Gmood1]

Sorry I've only scanned over the rewards page. I haven't attempted to redeem any points yet. I do like how the points are tracked on your accounts page. The points show almost instantly as you use the card. There's no waiting 2 months for them to be calculated. lol

The no AF and no FTFs is the main reason I got the card.

[PNW_Hunter]

Update

Decided to apply for the Penfed PLOC and asked for the full $25,000.00.

Application is under review. Message said to check back within 24 hours.

[PNW_Hunter]

19 days since I did the HP for my CLI, so I don't believe I have to worry about another HP since I'm well within 30 days.

[PNW_Hunter]

Approved for $25,000.00 PLOC with no income verification.

YAY!