5 Things to Know About the PenFed Power Cash Rewards Card

The card earns 1.5% or 2% back, depending on your eligibility for the credit union's Honors Advantage program.
Robin Saks FrankelJun 26, 2020
5 Things to Know about the PenFed Power Cash Rewards Visa Signature® Card

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As one of the nation's largest credit unions, Pentagon Federal — aka PenFed — serves over 1.7 million members worldwide, offering an array of financial products, including credit cards, auto loans and mortgages.

If you've ever considered adding a flat-rate cash back rewards card to your wallet, PenFed offers one with a twist: The earns either 1.5% or 2% back on all purchases, depending on your eligibility.

Here are five things to know about this -annual-fee card.

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Because PenFed is a , you have to be a member to apply for its financial products. Anyone can join, but that does mean there are a few extra steps before you can apply for the .

You'll have to fill out an application and make a $5 deposit into a PenFed savings account to set up your membership.

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On its own, the earns a respectable 1.5% on all purchases. That's pretty much nowadays. But why settle for average? PenFed members who are also part of the  program are eligible for an additional 0.5% back, bringing their cash-back earnings rate up to an attention-grabbing 2%.

To qualify for Honors Advantage and snag 2% cash-back rewards on all your spending, you must have and maintain a PenFed Access America Checking Account or meet the military service criteria — active duty, reserve, honorably discharged or retired.

There's no minimum or maximum amount of cash back you're eligible to receive. You can redeem for a statement credit or as a deposit into a PenFed account. You can also transfer your cash back to another financial institution.

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Any time there's an opportunity to save money on existing debt, that's a good thing. And the does double-duty as both a cash-back card and a potential . It offers an intro .

Be aware that there is a 3% balance transfer fee. Make sure the math works in your favor before moving any debt to this card.

The card also features a decent sign-up bonus: 

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Whether you were already a PenFed member or you're joining just to get the , there are some perks attached. There's a sizeable for PenFed members, including savings on home and auto insurance, car rentals and more.

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Taking a pass on mailed paper statements is better for the environment — and with the , it's also better for your wallet. Sign up for free electronic statements and you'll avoid having to shell out a $1 fee for each paper statement.

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