Your post is completely incorrect. PenFed is a quality credit union.
The Penfed credit card has a 25 day grace period
, not a 10 day like you claim. The 10 days is the time it will take after the grace period if you don't pay until it's considered delinquent. That means if you don't pay your bill 35 days after the closing statement, it will be considered delinquent. That is far from the 10 days you claim.
This is a credit union, not a bank. They do not benefit at all from their foundation donations, which is a non-profit. It sounds as if the OP doesn't even have a loan or credit card from Pentagon Federal credit union. In short there is no "scam" going on here. However something to be aware of is the strenuous approval process
. They are ultra conservative with their credit underwriting
. Not only do you first need to join their credit union, but when you apply for a card, the typical requirements for approval are:
- Providing copy of your income tax returns for the past 2 years
- Provide copy of your last 2 pay stubs
- If you are married, you may also be asked to do the same for your spouse, regardless of whether or not they will be on the credit card account.
- Mortgage or rent information
On top of that, your credit score needs to be ridiculously good. Even those with FICOs in the 800's frequently get turned down if they have too many inquiries or their credit utilization isn't to PenFed's liking. To give you an idea of how difficult it is, less than 1% of people who applied through CreditCardForum for their card last year were approved. Even myself, who has close to a 800 FICO and a 100% flawless credit history, was denied credit by PenFed.
For those reasons many of the Pentagon credit card reviews have been negative, but that is more directed at the rules and restrictions rather than the card itself. However as of 2013 their gas card rewards are lower than before. Now you only get 1/4% cash back for spending outside of the gas category. For these reasons, you may want to consider some of these other good gas cards
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.
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