CREDIT CARDSCREDIT CARDSPENFED PATHFINDER REWARDS CARD: PREMIUM CREDITS, WITH A FEW CAVEATS

PenFed Pathfinder Rewards Card: Premium Credits, With a Few Caveats

This card offers rich rewards and valuable travel perks for a $95 annual fee, which is avoidable if you meet certain requirements. Credit union membership is mandatory, though, and redemption options are limited.
Sara Rathner Author Avatar
Apr 10, 2023 11:33 a.m. PDT
Edited by
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5.0

NerdWallet rating
The bottom line:

If you don't mind joining a credit union first, this card packs a big punch, even when compared with more expensive competitors. But point values vary, and you can't redeem for cash back.

Pros
  • High rewards rate
  • Intro APR period on Balance Transfers
  • No foreign transaction fee
Cons
  • Has annual fee
  • Membership required
  • Can't redeem for cash back
PenFed Pathfinder® Rewards Visa Signature® Card Image
PenFed Pathfinder® Rewards Visa Signature® Card
Annual Fee

$95

Regular APR

17.99% Variable APR

Intro APR

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%.

Rec. credit score

PenFed Pathfinder® Rewards Visa Signature® Card
PenFed Pathfinder® Rewards Visa Signature® Card Image

Annual Fee

$95

Regular APR

17.99% Variable APR

  • Annual fee

    $95

  • Rewards rate

    1.5x-4x

  • Bonus offer

    50,000 bonus points after spending $3,000 in purchase transactions within the first 90 days of account opening.

  • Intro APR

    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%.

  • Ongoing APR

    APR: 17.99% Variable APR

  • Balance transfer fee

    3% fee applies to each transfer

  • Foreign transaction fee

    0%

More details from Pentagon Federal Credit Union
  • Earn more everywhere you go!
  • 50,000 Bonus Points when you spend $3000 in the first 90 days
  • Up to $799 total Travel value
  • 4X Points on all Travel categories for PenFed Honors Advantage Members
  • 3X Points on all Travel categories
  • 1.5X Points on all other purchases
  • 0% Balance Transfers Promo APR for 12 months, 3% fee applies to each transaction. Subject to credit approval. 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%. A 3% balance transfer fee applies to each transfer. This transaction is subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.
  • Annual Fee: $95 (waived for existing PenFed Honors Advantage Members)
  • Purchase Variable APR: 17.99%
  • Refer to PenFed.org for Terms/Conditions

Compare to Other Cards

ANNUAL FEE
$0
REGULAR APR
17.24%-28.24% Variable APR
Rates & Fees
INTRO APR
0% intro APR for 15 months on purchases and balance transfers
RECOMMENDED CREDIT SCORE
ANNUAL FEE
$95
REGULAR APR
21.49%-28.49% Variable APR
INTRO APR
N/A
RECOMMENDED CREDIT SCORE
ANNUAL FEE
$0
REGULAR APR
18.24%-28.24% Variable APR
INTRO APR
0% intro APR on Purchases for 15 billing cycles and 0% intro APR on Balance Transfers for 15 billing cycles for any balance transfers made in the first 60 days
RECOMMENDED CREDIT SCORE
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Detailed review: PenFed Pathfinder® Rewards Visa Signature® Card

Travel credit cards with top-notch perks are usually reserved for those willing to pay a steep annual fee. But the PenFed Pathfinder® Rewards Visa Signature® Card can be an exception. Despite its sticker price — a $95 annual fee — PenFed will waive that cost if you meet eligibility requirements. (More on that below.)

Even if you aren't able to dodge that fee, it's still a competitive card. You'll get valuable travel credits, benefits and protections that make it easier to get out of town. And unlike a lot of other travel cards, you'll earn a healthy rewards rate, even on non-travel-related spending. All of these features help earn the card a spot in our roundup of the best credit union credit cards.

But as is typical of those kinds of cards, you have to be a credit union member before you can get this one. And while it's not terribly difficult to join the PenFed Credit Union, there are some other potential drawbacks to consider when it comes to redemption options and values.

PenFed Pathfinder® Rewards Visa Signature® Card: Basics

Card type: Travel.

Annual fee: $95 (This is waived for PenFed Honors Advantage members. Details below).

Sign-up bonus: 50,000 bonus points after spending $3,000 in purchase transactions within the first 90 days of account opening.

Rewards:

  • 3 points back on travel purchases (4 points back on travel for PenFed Honors Advantage members).

  • 1.5 points back on all other purchases.

To have the annual fee waived and to earn rewards on travel purchases at the higher 4X rate, you must be a PenFed Honors Advantage member, which requires military service or a PenFed Access America checking account.

You can redeem rewards for travel, gift cards, merchandise and charity donations. (Notably, cash back is not an option.)

APR: 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%.

Foreign transaction fee: None.

Balance transfer fee: 3%.

Other benefits:

  • $100 annual domestic air ancillary travel statement credit, for use toward baggage fees, lounge access and onboard food and drinks.

  • Statement credit every four years for reimbursement of application fee for TSA Precheck ($85) or Global Entry ($100).

  • Complimentary Priority Pass airport lounge annual membership.

Benefits and perks

High rewards rates, broad definition of travel

When it comes to ongoing rewards, the PenFed Pathfinder® Rewards Visa Signature® Card offers the best of both worlds. You'll earn an elevated rate in a bonus category — at least 3 points back on travel purchases, and potentially 4X back if you qualify — but you'll also earn a higher-than-normal flat rate of 1.5 points back on everything else you buy. That's unusual among tiered rewards cards, which normally offer just 1 point back in non-bonus categories. Among travel purchases eligible for the highest rewards rate: airfare, hotels, car rentals, cruises, bookings with travel agencies, tolls, tour operators, bus lines and taxis or rideshare services like Uber or Lyft.

An avoidable annual fee

It is exceedingly rare for a card to offer premium travel credits for no cost, but it's possible with the PenFed Pathfinder® Rewards Visa Signature® Card. You dodge the $95 annual fee if you qualify for the PenFed Honors Advantage program, either as a member of the military or by having a PenFed Access America checking account — in which case, you'll also qualify for richer rewards on travel.

It's an extra hoop to jump through (on top of already having to join a credit union), but given the value you get in exchange, it can absolutely be worth it.

$100 annual credit toward ancillary airline fees

This credit is only for qualifying domestic airlines, and you can't use it toward airfare. But you can apply it toward other costs, including baggage fees, in-flight food and beverage purchases, airport lounge day passes, pet kennel fees, flight change fees and phone reservation fees. (Eligible airlines include American, Delta, Southwest, United and more.)

Even if you aren't able to get the card's annual fee waived, this credit alone is enough to offset that cost.

Additional travel perks and benefits

You'll get a statement credit that covers the cost of the application fee for TSA Precheck or Global Entry. (You must use the card to pay the application fee.) You'll also have access to Priority Pass airport lounges for $32 per visit. Travel assistance, car rental insurance, roadside assistance and other protections are all available as benefits while you're on a trip. There are no foreign transaction fees, and because the card runs on the Visa network, international acceptance is widespread.

Drawbacks and considerations

Membership is required

You must become a PenFed credit union member when applying for the card if you aren't one already. Everyone is eligible to join, but it does require a few extra steps. You'll have to submit an application and open a PenFed savings account with a $5 deposit. If you want a no-annual-fee travel credit card that doesn't require jumping through any hoops, take a look at the $0-annual fee Bank of America® Travel Rewards credit card It earns 1.5 points per $1 spent on purchases. Points are worth 1 cent apiece when redeemed for travel or restaurant purchases.

Limited redemption options, so-so point value

Because points you earn on the PenFed Pathfinder® Rewards Visa Signature® Card don't have a set value, how much value you get out of the card will depend on how you redeem your rewards. But as of July 2022, you could redeem points multiple ways for around .8 cent a piece, well below the industry standard of a penny per point. What's more: you can't redeem your rewards for cash back.

If you want a travel card with more flexibility, consider the Discover it® Miles. It has an annual fee of $0, and it earns 1.5 miles per dollar spent on all purchases. It doesn't offer perks like travel credits, but you can redeem points for travel or gift cards at the same value of a penny each. The card also has a generous welcome offer: UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.

Alternate Pick: Cash back if you want it
1.5 miles per dollar on everything

This card earns 1.5 miles per dollar spent on all purchases. Miles can be redeemed for travel at a rate of a penny a point — or you can redeem them for cash back at the same value. The annual fee is $0, and there's a bonus offer for new cardholders that gets sweeter the more you use the card: UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.

How to decide if it's right for you

If you travel a lot, don't mind joining a credit union and can get use out of its valuable perks, the PenFed Pathfinder® Rewards Visa Signature® Card is a good pick. It's an even better pick if you're an Honors Advantage member because PenFed waives the $95 annual fee and you'll earn richer rewards on travel purchases.

But if you're not interested in meeting all those necessary requirements and you'd like a little more flexibility when it comes to redemption options, you may want to consider other possibilities. To see how this card compares against the competition, take a look at NerdWallet's roundup of best credit card deals.

Methodology

NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.

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