Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
PenFed Platinum Cash Rewards Card is changing
Old 12-29-2011, 11:41 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
PenFed Platinum Cash Rewards Card is changing

I got a letter today from PenFed, they are changing their cash rewards credit card. The 5% rewards on gas at the pump stays the same but everything else will drop from 1% to .25%.

Very disappointing, but the rest of the letter explains that we can "accelerate our rewards" by switching the Cash Rewards Card to the new PenFed Platinum Rewards Card -
5 points per dollar on gas
3 points per dollar on supermarkets
1 point per dollar on everything else

Points can be redeemed for stuff or gift cards or VISA prepaid cards.
The PenFed Platinum Rewards Card - Switch to Points Rewards Today!

I called PenFed to ask about what point levels you have to be at to redeem, especially for the gift cards or VISA card, since I'm not interested in redeeming for stuff, only cash equivalents. The gentleman told me that they don't have that info yet, it will be coming later in January, 2012.

Nice incentives for switching, 5000 points with first usage and 20,000 points after spending $1000 in the first 3 months.

I'm sorry to see this change, I liked the cash reward posted to the monthly statement and I don't like the programs that accumulate points. But we do like to use the PenFed card for everything (paid in full monthly) and groceries is our biggest expense so it will be nice to get 3 points on groceries. The points should accumulate quickly, I just hope you can redeem them at $50 or so for the gift card or VISA card.
__________________

__________________
Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-29-2011, 11:48 AM   #2
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Unfortunately for us, I think the banks are figuring out that the main beneficiaries of the generous cash back cards are the folks who pay off their balance every month, so there's just not much profit in them.
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 12-29-2011, 12:01 PM   #3
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,074
I have already reduced using the PenFed Visa card for purchases other than fuel. Very happy they kept the 5% pay-at-the-pump discount as it will now become my gas/diesel card exclusively.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 12-29-2011, 12:43 PM   #4
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Quote:
Originally Posted by Sue J View Post
I'm sorry to see this change, I liked the cash reward posted to the monthly statement and I don't like the programs that accumulate points.
+1

Argh, in late 2009 I specifically closed a few credit cards and got PenFed Visa rewards and Costco AMEX for the simple cash back.

I also have an AMEX Blue account that my Mom has kept some promotional lifetime balance transfer balance in, but she's paying it off tomorrow. So I'll have that available for purchases, but I don't recall if it's a cash bonus card or a points card.

I'm really not a points fan. I like the brainless automatic cashback into the account. I'll have to reevaluate my everyday card. Sounds like PenFed will be gas-only.

Thanks for the post. I hadn't heard about the changes yet.
__________________
BigMoneyJim is offline   Reply With Quote
Old 12-29-2011, 12:54 PM   #5
Recycles dryer sheets
 
Join Date: Apr 2011
Posts: 106
Wow. I loved that I was credited with my rewards points every month right to the card. I accepted the overall lower rewards and inconvenient online access (download function is awful compared to most banks) but it looks like this will be regulated to fuel purchases only.

Time to go investigate if any other better cards out there. I know my Brother changed away from Penfed after they dropped the 2% on groceries. Will find out what he is using now.
__________________
I'm not obsessed with money, I'm obsessed with work! Er, rather the not doing it anymore part...
ChadR is offline   Reply With Quote
Old 12-29-2011, 01:29 PM   #6
Full time employment: Posting here.
Lakedog's Avatar
 
Join Date: May 2007
Posts: 654
I have been using the PenFed card for everything but will likely do what others have mentioned (use for gas only). I will probably switch all other purchases to my recently acquired Amazon rewards card (since I buy lots of stuff there and using the points is simple).
__________________
Lakedog is offline   Reply With Quote
Old 12-29-2011, 03:07 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,874
I was pleased to read that I can "earn 5,000 points the first time you use your platinum rewards card...another 20,000 points when you spend at least $1K in the first 3 months..." To me, that's $250.00 (even though it's in the form of a debit card, not cash) for spending $1K. What am I missing?

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 12-29-2011, 05:23 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
I called them. It ios basically a slightly less convenient 5% back on gas. You need at least 2500 points to get a Visa debit card ($25), so the threshold is pretty low. Since I expect the old cash rewards card is on its way out, I will take the $250 and jump to the new card.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 12-29-2011, 06:16 PM   #9
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Both my Amex reward cards have prominent "switch to the new points plan" notices. Yeah, I'm getting the impression that cash rewards are an endangered species. I think I'll stubbornly cling to easy cash rewards and gripe a lot when they shrink and/or go away. Maybe I'll just go debit after that.
__________________
BigMoneyJim is offline   Reply With Quote
Old 12-30-2011, 12:12 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,874
As long as credit cards don't carry an annual fee, I'll use them. It's a no-interest 3-week loan, after all.

Years ago, Visa teamed up with our local grocery chain to give grocery shoppers vouchers for free groceries as a reward for using the card. Sadly, this wildly popular program was soon discontinued, because our area has a high %age of "dead-beats" - the banks' term for people who pay their credit card bills in full every month. Somehow, the bank and the grocery chain hadn't figured that into their plans!

Amethyst

Quote:
Originally Posted by BigMoneyJim View Post
Both my Amex reward cards have prominent "switch to the new points plan" notices. Yeah, I'm getting the impression that cash rewards are an endangered species. I think I'll stubbornly cling to easy cash rewards and gripe a lot when they shrink and/or go away. Maybe I'll just go debit after that.
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 12-30-2011, 03:24 PM   #11
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
For anyone with a Fidelity account, we're still using an Amex 2% rewards card that automatically deposits the cashback to the brokerage account every month.

In our case the Amex doubled our purchases of Costco gas & groceries, so it was a good deal.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 12-30-2011, 04:42 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,432
Quote:
Originally Posted by Nords View Post
For anyone with a Fidelity account, we're still using an Amex 2% rewards card that automatically deposits the cashback to the brokerage account every month.

In our case the Amex doubled our purchases of Costco gas & groceries, so it was a good deal.
I may have to look into that. I hate to see PF's new deal.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 12-30-2011, 08:32 PM   #13
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Sounds like I might get my 4th Amex soon. If they'll let me have that many. (Corporate charge card, Costco and Blue are what I have now.)
__________________
BigMoneyJim is offline   Reply With Quote
Old 12-30-2011, 10:01 PM   #14
Recycles dryer sheets
 
Join Date: Dec 2011
Location: philadelphia
Posts: 106
Quote:
Originally Posted by ziggy29 View Post
Unfortunately for us, I think the banks are figuring out that the main beneficiaries of the generous cash back cards are the folks who pay off their balance every month, so there's just not much profit in them.

I've been finding that out for quite some time. I have a Citi Rewards MasterCard with no annual fee that I have been using heavily since 2003 to get points. I've never been late once; I just charged it up and paid it off in full at the end of each month. My rewards were two paid airfares to Europe, one in 2006 and one in 2009, and $800 in Home Depot gift certificates about a month ago. Back in 2003 my credit line was $5,500. Beginning in 2007 they cut it several times so that now the credit line is $1,530. I guess Citi wants to limit my rewards as much as possible.
__________________
james7 is offline   Reply With Quote
Old 12-30-2011, 11:05 PM   #15
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by Dawg52 View Post
I may have to look into that. I hate to see PF's new deal.
Fidelity Rewards American Express Cards

We used to pay cash or check at Costco, and we had to use our ATM card as a debit card at the gas pump. But Costco doesn't care where the Amex card comes from-- they seem to accept them whether they're a Costco-branded Amex or not.

So when we got the 2% Amex and started using it at Costco, we doubled our food & gas purchases on a credit card and started getting 2% rebates.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 12-31-2011, 07:01 AM   #16
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,074
As to the decision to switch from the PenFed Visa cash back card to the new points reward card, looks like we may be able to have both. From the FAQ section at PenFed:

Quote:
Q. What if I want to keep my existing Platinum Cash Rewards Card AND get the new PenFed Platinum Rewards Card?

R. That's great – you should keep your Platinum Cash Rewards Card open and apply for the new PenFed Platinum Rewards Card when it is available in February.
Q. Will I still be eligible for the special 25,000 bonus point offer, even if I apply for the PenFed Platinum Rewards Card instead of switching to it?

R. Yes, you will still be able to take advantage of the 25,000 bonus point offer.
The PenFed Platinum Rewards Card - Switch to Points Rewards Today!

I'll keep the cash back card plus apply for the new one in February to get the freebies. Worth a shot to have your cake and eat it, too...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 12-31-2011, 09:50 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,432
Quote:
Originally Posted by brewer12345 View Post
I called them. It ios basically a slightly less convenient 5% back on gas. You need at least 2500 points to get a Visa debit card ($25), so the threshold is pretty low. Since I expect the old cash rewards card is on its way out, I will take the $250 and jump to the new card.
Upon further review(I've been watching too much football), I may just do as you. A little less convenient, but not a bad deal. I'll probably use my rewards via a gift card or Visa card.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 12-31-2011, 10:43 PM   #18
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by REWahoo View Post
I'll keep the cash back card plus apply for the new one in February to get the freebies. Worth a shot to have your cake and eat it, too...
And in your case, the credit-card crooks will be twice as happy!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 01-01-2012, 05:32 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,874
Or twice as unhappy, since ReWahoo no doubt pays all accounts in full each month, and doesn't buy extra stuff just to get a few extra points or dollars as a "reward."

Amethyst

Quote:
Originally Posted by Nords View Post
And in your case, the credit-card crooks will be twice as happy!
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 01-01-2012, 05:43 PM   #20
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,074
Quote:
Originally Posted by Amethyst View Post
Or twice as unhappy, since ReWahoo no doubt pays all accounts in full each month, and doesn't buy extra stuff just to get a few extra points or dollars as a "reward."
Yep, that's exactly what I do.

However, Nords is probably referring to the recurring problem I've had with theft of my PenFed CC account by even bigger crooks than the 'legal' ones at Visa and MasterCard...
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Looking for a good reward credit card Texas Proud FIRE and Money 19 09-08-2011 10:12 AM

 

 
All times are GMT -6. The time now is 01:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.