5 Things to Know About the PenFed Power Cash Rewards Card
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Pentagon Federal — aka PenFed — offers 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 PenFed Power Cash Rewards Visa Signature® Card earns either 1.5% or 2% back on all purchases, depending on your eligibility.
Here are five things to know about this $0-annual-fee card.
1. To be eligible to apply, you must be a PenFed member
Because PenFed is a credit union, 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 PenFed Power Cash Rewards Visa Signature® Card.
You'll have to fill out an application and make a $5 deposit into a PenFed savings account to set up your membership.
2. You have to qualify for that 2% rate
On its own, the PenFed Power Cash Rewards Visa Signature® Card earns a respectable 1.5% on all purchases. But why settle for average? PenFed members who are also part of the Honors Advantage program are eligible for an additional 0.5% back, bringing their cash-back earnings rate up to 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.
As long as you're willing to put in the effort to earn that 2% back, the PenFed Power Cash Rewards Visa Signature® Cardis a solid choice. But other cards offer similar rewards without having to jump through hoops. For example, the Wells Fargo Active Cash® Card offers 2% back on all purchases without having to bank with Wells Fargo.
3. The card offers introductory incentives
Any time there's an opportunity to save money on existing debt, that's a good thing. And the PenFed Power Cash Rewards Visa Signature® Card does double-duty as both a cash-back card and a potential balance transfer card. It offers an intro 0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%..
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: $100 statement credit after spending $1,500 in purchase transactions within the first 90 days of account opening.
4. Membership comes with discounts
Whether you were already a PenFed member or you're joining just to get the PenFed Power Cash Rewards Visa Signature® Card, there are some perks attached. There's a sizeable list of discounts for PenFed members, including savings on home and auto insurance, car rentals and more.
» MORE: How to choose a cash-back card
5. Save money by opting for electronic statements
Taking a pass on mailed paper statements is better for the environment — and with the PenFed Power Cash Rewards Visa Signature® Card, it's also better for your wallet. Sign up for free electronic statements and you'll avoid having to shell out a $2 fee for each paper statement.
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