The PenFed Power Cash Rewards Visa Signature Card is the best PenFed credit card for everyday cash back rewards. It’s worth considering because there’s no annual fee and you can earn at least
1.5% back on all purchases, in addition to PenFed’s customary initial rewards bonus:
$100 for spending
$1,500 in the first
90 days.
This card is especially good for PenFed Honors Advantage members, who earn a full 2% cash back on all purchases.
This isn’t the easiest card in the world to get, however, as applicants generally need a credit score of
700 or higher as well as PenFed membership to get approved and open an account. But it is a very good offer if you’re in the position to qualify. Below, you can find more information that will help you make up your mind about whether or not to apply for the PenFed Power Cash Rewards Visa.
What I Like About the PenFed Power Cash Rewards Card
$0 annual fee
The average credit card offer charges about
$26.75 per year according to WalletHub’s latest Credit Card Landscape Report, so the
PenFed Power Cash Rewards Visa Signature® Card compares favorably in terms of cost. Most of the other PenFed credit cards available right now don’t have annual fees, either.
$100 initial bonus
New cardholders get
$100 statement credit for spending $1,500 in the first 90 days. That’s better than nothing, but it’s far from spectacular. After all, even the average cash back credit card bonus offer is currently
$235, according to
WalletHub’s research.
1.5 - 2% cash back on purchases
That is above-average to begin with, but the earning rate can also rise to 2% for PenFed Honors Advantage members. To qualify for Honors Advantage status, you must serve or have served in the military or open a PenFed Access America Checking Account.
The PenFed Power Cash Rewards Card also lets you redeem the cash back rewards that you earn for a statement credit or a deposit into a bank account from PenFed or another institution. For context, the average cash rewards card gives a bit more than 1% back on all purchases.
0% for 12 months on balance transfers
This intro offer applies to balances transferred in the first 90 days after account opening. That’s a pretty good deal, but its entourage isn’t as attractive. The introductory APR is accompanied by a balance transfer fee and a higher regular APR, which applies to whatever remains of the transferred balance until it’s paid off.
What I Don’t Like About the PenFed Power Cash Rewards Card
Regular APR of 17.99% (V)
Compared to the average APR among credit card offers available right now (roughly
22.76%), the PenFed Power Cash Rewards Visa’s regular rate seems pretty good. It is above the average for credit cards that require excellent credit for approval (about
17.68%), however.
The card’s rewards rate is no match for an interest rate this high. If you carry a balance from month to month, the interest charges you pay will drastically outweigh your ongoing savings from rewards. So, make sure to always pay your full statement balance by the due date.
Balance transfer fee
If you transfer a balance to the
PenFed Power Cash Rewards Visa Signature® Card, a fee equal to
3% of that balance will be tacked onto what you owe. That’s a pretty standard fee, but there are some
credit cards with no balance transfer fees that offer 0% introductory APRs for as long as this PenFed cash back credit card.
Good credit required
Applicants for the PenFed Power Cash Rewards Visa generally need a credit score of
700 or higher for good approval odds. You can
check your latest credit score for free here on WalletHub.
Finally, if you’re not sure whether PenFed is the right fit for you, you can read more about Pentagon Federal Credit Union’s
eligibility requirements. Spoiler alert: anyone can join.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
