PenFed Platinum Cash Rewards Visa Review
Updated April 13, 2016.
The Facts
The Math
PenFed Platinum Cash Rewards Visa vs. PenFed Platinum Rewards Visa Signature: When you qualify for Plus level by having the required banking relation with PenFed, Cash Rewards Visa returns 5% on gas and 0% on other purchases, without an annual fee. On the other hand, the Visa Signature doesn't require banking relation and is also annual fee free. The Visa Signature returns 4.25% on gas, 2.55% on groceries, and 0.85% on other purchases, and offers better travel perks and coverage as being a higher level of Visa card. Thus in general, the Visa Signature is a better card.
The Conclusion
While unlimited 5% on gas is still attractive, the required banking relation makes this card not an easy choice. We recommend checking out PenFed Platinum Rewards Visa Signature for better rewards, perks, and coverage.
The Facts
- Annual Fee: $25 with the first year waiver for Standard; $0 for Plus which requires one of the following relations: Active checking account with direct deposit ($250 min.), Equity Loan or Equity Line of Credit, Money Market Certificate or IRA Certificate, Thrifty Credit Service, Mortgage, Personal Line of Credit, Installment loan, or Money Market Savings Accounts.
- Signup Bonus: $100 after spending $1,500 within 3 months of new account opening.
- Application Landing Page
- Rewards: 3% (for Standard) or 5% (for Plus) on gas, and 0% everywhere else
- Other Benefits: waived foreign transaction fees with an embedded EMV chip for foreign travel.
- Other Facts: There are a couple of ways of joining PenFed (Pentagon Federal Credit Union) - even if you don't qualify for most options, you can still pay $20 to join National Military Family Association which is open to everyone. This card is issued as a regular Visa (Visa Platinum), and there is another similar product called "PenFed Platinum Rewards Visa Signature" which is generally a better card.
- History: After the card was introduced, 5% on gas without an annual fee made quite a few non-members joined PenFed just to have this card. PenFed dropped the cashback rate on general spending from 1% to 0.25% in February 2012, and finally to 0% in 2013. Also in 2013, PenFed started requiring additional banking relation to maintain 5% on gas and the annual fee waiver. This move made the card unattractive to most consumers.
The Math
PenFed Platinum Cash Rewards Visa vs. PenFed Platinum Rewards Visa Signature: When you qualify for Plus level by having the required banking relation with PenFed, Cash Rewards Visa returns 5% on gas and 0% on other purchases, without an annual fee. On the other hand, the Visa Signature doesn't require banking relation and is also annual fee free. The Visa Signature returns 4.25% on gas, 2.55% on groceries, and 0.85% on other purchases, and offers better travel perks and coverage as being a higher level of Visa card. Thus in general, the Visa Signature is a better card.
The Conclusion
While unlimited 5% on gas is still attractive, the required banking relation makes this card not an easy choice. We recommend checking out PenFed Platinum Rewards Visa Signature for better rewards, perks, and coverage.