The most important advantages
You will enjoy many great benefits as a PenFed Power Cash Rewards Visa Signature® card holder.
Earn up to 2% back
This PenFed credit card earns 2% cash back on PenFed Honors Advantage member purchases. If you are not a member, you will earn 1.5% of all purchases.
While neither is a good rate, the higher rate occupies the first place with the best cashback credit cards. Fortunately, becoming a PenFed Honors Advantage member is easy. There are two ways to qualify:
- PenFed Access America checking account: Open this type of checking account or use your existing account if you already have one. There is no monthly service fee if you maintain a daily balance of at least $500 or create a monthly direct deposit of $500 or more.
- Military service: This applies if you are the primary cardholder and are in active, reserve, honor roll, or retired military.
0% APR on Balance Transfers
You get 0% upfront APR on balance transfers for the first 12 months after opening a credit card account. There is a 3% balance transfer fee for each transaction.
Balance transfer works well if you are trying to get out of credit card debt. Instead of paying off balances at an interest rate of 18% or more, you can transfer them to your PenFed card. After that, you will have 12 months to work on your debt at 0% APR. Just note that some balance transfer credit cards offer an introductory period longer than 12 months.
Learn more: A complete guide to balance transfers
$100 sign up bonus
The PenFed Power Cash Rewards Visa Signature® Card provides a $100 statement credit when you spend $1,500 in the first 90 days. As long as you hit the spending requirements, this is an easy way to save $100.
No annual fee
If you’re trying to cut costs, credit cards with an annual fee aren’t exactly what you need. There is no annual fee for this PenFed credit card, so you can carry it for free.
Eligible items purchased with the PenFed Power Cash Rewards Visa Signature® Card are covered by Purchase Security. This policy protects against damage or theft during the first 90 days, up to a maximum of $500 per claim and $50,000 per cardholder.
No foreign transaction fees
For travelers, it is important to have a credit card that does not charge you more fees for international transactions. Since there are no foreign transaction fees, a PenFed credit card is a good option.
What can be improved
There are a few areas where PenFed could make a rewards credit card even better.
Modest sign up bonus
One of the places where the PenFed Power Cash Rewards Visa Signature® card fails is the sign-up bonus. It’s not a bad bonus, but there are better sign up bonus offers than other cards.
Many credit cards without an annual fee have introductory rewards of $150, $200, or even $250, and most also have smaller spending requirements than a specific PenFed card.
No 0% Advance APR on Purchases
Although this credit card offers 0% upfront annual interest on balance transfers, it doesn’t offer this deal on purchases you make. If you want to pay off big expenses gradually, check out 0% APR credit cards with upfront offers that cover purchases.
Requires a PenFed Membership
To apply for the PenFed Power Cash Rewards Visa Signature® Card, you must be a member of the PenFed Credit Union. Compared to the major credit card companies that do not have this requirement, this is an additional hurdle.
It’s not a huge barrier though. Anyone in the US can join PenFed Credit Union by opening a savings account with a minimum deposit of $5. The Credit Union Online Premium Savings Account has an interest rate similar to the best savings accounts and there are no monthly maintenance fees. It’s a quality product and not just an account you never want to use.