What could be improved
This card has a few downsides worth noting, including an extra hoop you'll need to jump through to apply.
No 0% intro APR offer for new purchases
Although the PenFed Platinum Rewards Visa Signature® Card has an intro APR deal for balance transfers, new purchases aren't eligible for the 0% intro APR offer. This makes the PenFed Platinum Rewards Visa Signature® Card a decent option if you already have some credit card debt. But you'll want to look elsewhere if you have a large purchase coming up and you want to save on interest fees. You can scroll through our other credit card reviews to find tons of great rewards cards that have long 0% intro APR offers on new purchases.
Intro APR offer on balance transfers is full of traps
In most cases, an intro APR offer on balance transfers would be considered a pro. But when it comes to the PenFed Platinum Rewards Visa Signature® Card, the fine print makes it potentially dangerous if you don't know all the rules ahead of time.
At first glance, it looks like you can get 12 months of 0% APR on transferred balances. However, there are some caveats you need to note carefully.
For one thing, transfers must be made within a specific time frame to be eligible for the reduced interest rate. Transfers made after the set date are subject to the go-to balance transfer APR.
The trickiest part, however, has to do with the fact that there's no intro APR on purchases. Because of this, any new purchases you make with the card will be charged interest immediately. The only way to avoid this is to pay the full account balance -- including any transferred balances -- by the due date each month.
In other words, if you're going to use this card to take advantage of the balance transfer offer, be sure you don't need it to make any new purchases. Stick to another card until you pay off that balance transfer in full.
Must be a PenFed member to apply
Since PenFed is a credit union, you'll need to be a member to open any of its accounts, including the PenFed Platinum Rewards Visa Signature® Card. Fortunately, you don't need to meet any specific military requirements to join. While PenFed originated as a credit union specifically for military members, it's now open to all U.S. citizens and permanent residents.
You simply need to open a PenFed savings account with a minimum balance of $5 to become a member. Even better, you can join PenFed during the application process for the PenFed Platinum Rewards Visa Signature® Card.
Rewards points have limited value
The value you get from your points seems to vary considerably. If you're looking for cash back or gift cards, expect a low value of just $0.0085 per point -- less than a cent each. That makes the 5x points per $1 worth just 4.25% cash back. And the 3x on supermarket purchases is worth just 2.55% cash back. While the gas rate is still competitive, the 2.55% on groceries is pretty easy to beat with other grocery rewards cards.
Some travel redemptions can get you better results (there are reports of $0.017 per point for certain bookings). But that requires booking your travel through PenFed. This means you'll miss out on the perks and rewards you'd get from booking directly with the airline or hotel. You're also subject to whatever prices you can find in the PenFed portal, which may or may not compare to direct bookings or other third-party booking sites.
Additionally, you can't transfer the points to try to maximize your return. Some of the most popular credit card rewards points offer the option to transfer points to hotel and airline loyalty programs, which can unlock huge per-point value. For example, if you transfer Chase Ultimate Rewards points to a partner airline, smart redemption could net $0.03 per point or more.
