New PenFed Credit Card?

**JohnB222** · Dec 29, 11, 11:33 am

Anyone else just get this in the mail? I have a Platinum Cash Rewards card and got a letter that talks about a few things:

1) My APR is being lowered from 13.99% to 9.99%

2) Non-gas purchases are changing from 1% rebate to 0.25% rebate effective 2/1/12

3) They are announcing a new credit card called "PenFed Platinum Rewards Card"

a) 5 points per dollar on gas purchases

b) 3 points per dollar on supermarket purchases

c) 1 point per dollar on all other purchases

According to the paper, you can do a PC from Cash Rewards to this new card (so no new pull or anything) and is also subject to a rewards bonus for switching! I'm a little unsure why they are wanting people to move away from Cash Rewards, only thing I can think of is 1 point does not equal 1 cent so it is cheaper for them...but I will be looking into it and updating this post. For more information, you can visit - The PenFed Platinum Rewards Card - Switch to Points Rewards Today!

**FutureBillionaire** · Dec 29, 11, 5:37 pm

I would rather carry both than just this one. I like the fact that I get my cash back every month on my card. If I only get 25% on this card, I probably won't use it as much going forward. I need to see how many points it takes to redeem good merchandise.

**requiredfield** · Dec 30, 11, 1:15 am

I never use this card for anything other than gas unless they offered something special like that make three 'everyday purchases' of $10 or more and get a $5 statement credit that they did a few months back.

From the link

Switching from Cash to Points is Easy

We made it easy for you to switch from the Visa Platinum Cash card to the PenFed Platinum Rewards card. There is no application necessary, your rates will stay the same, and you can continue to use your existing card plastic. Simply fill out the information requested on the side and click the "Submit" button and you will automatically begin earning points with every purchase at the start of your first billing cycle after February 1. Until then, you will continue to earn cash back.

Special, Limited Time Offer

Plus, you can jumpstart your rewards by earning 5,000 points the very first time you use your card and another 20,000 points when you spend $1,000 within the first 3 months. That's $250 that you can use toward merchandise, gift cards, and other rewards. Or, you can use your points for other easy-to-redeem rewards, such as merchandise, gift cards, or travel.

My favorite word is missing from the reward selection, cash.

**JohnB222** · Dec 30, 11, 2:33 pm

I mean obviously it would be better for it to be cash back off statement every month, but at least they don't make you use your points for restrictive gift cards or something...you can use them for prepaid visa gift cards good anywhere with 1p = 1c and offering a $250 bonus for switching. I don't know about you, but having to put up with gift cards instead of CASH is worth the $250 bonus.

**requiredfield** · Jan 2, 12, 2:08 am

They seem to really want people to voluntarily move off a great gas card (I've sockdrawed mine for this quarter). This makes me suspicious, it's in my nature. Point programs can be changed with no notice at all, you'll still earn at the same rate but the conversion can be altered to their benefit at will.

**JohnB222** · Jan 2, 12, 11:19 am

That is true, but personally...for me...the $250 switch bonus makes it worth it. Chances are they will not devalue the points enough to make it not worth the extra $250.

**FutureBillionaire** · Jan 3, 12, 11:41 am

It is 250 up front, but what if you lose 500 in benefits over the next couple of years? Is that worth it? I prefer receiving my cash back on my statement every month. I wonder if they let you have both...

**JohnB222** · Jan 3, 12, 7:33 pm

Yes you can have both, but of course that would result in additional account (lowering AAoA) and hard pull (increasing number of inquiries). As it currently stands, it is impossible to lose benefits...only gain. Even if they devalue points in future, my opinion says there is no way to lose by upgrading...

**sticf** · Jan 4, 12, 7:09 am

Originally Posted by requiredfield

They seem to really want people to voluntarily move off a great gas card (I've sockdrawed mine for this quarter). This makes me suspicious, it's in my nature. Point programs can be changed with no notice at all, you'll still earn at the same rate but the conversion can be altered to their benefit at will.

You do realize that credit card companies can change any rewards program. I have had several conversations at work about credit cards and some people seem to think that "Cash" is better. They believe it is more "tamper proof" than points.

I am sure that there is a line in just about any agreement that the "rewards" are at the credit card issuers discretion (I looked quickly in the Discover Agreement but could not locate it though I remember reading something like that earlier). This is included to ensure they can put an end to fraudulent activity they have not specifically banned in the agreement. It may not be a smart move to invoke the clause to force a change in rewards system, but they could.

My basic approach to any rewards system is "it is good while it last, but do not expect it to last forever".

**FutureBillionaire** · Jan 4, 12, 12:57 pm

That makes sense. I would rather get the cash back on every statement without thresholds or having to redeem anything. I imagine they may make us move at some point.

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