PenFed Credit Card offer

[pb4uski]

Got this in the mail the other day. $100 statement credit after spending $1,000 in purchases in first 3 months with no fee for the card.

It seems like a slam dunk. I don't usually play the credit card rewards game but am considering this as an exception.

Thoughts? Anyone see any gotchas?

 

[RHLnFLA]

I thought it was $100 statement credit for $1500 in purchases over 3 months. If your flyer says $1000 in purchases then I'm going to call them on it.

 

[pb4uski]

I thought it was $100 statement credit for $1500 in purchases over 3 months. If your flyer says $1000 in purchases then I'm going to call them on it.

You are correct - I misread it - it is $1,500 - still a good deal.

 

[jetpack]

I remember the days of $300 to $500 in rewards for signing up.

There are a few cards that still give out $100 for signups and min purchases
Cash Back Credit Cards | Up to 5% Rewards (Compare 228 Offers)

 

[gauss]

Barclays Arrival + gives $400 (actually 40,000 miles that can be credited towards travel expenses) for signing up and spending 3000 within 3 months.

All purchases then earn 2% going forward that can be applied as credits to travel purchases.

Additionally this card has been confirmed by an ER member in another thread to work at various unmanned POS in France.

No foreign transaction fees.

Another nice feature is that if you have a 2nd card for another authorized signer, they get their own card number that is attached to every online transaction.

Also their online site shows "authorizations" in real-time. This helps to confirm that an online purchase has gone through during competitive "busy times" (ie buying World Series tickets online, etc).

-gauss

The only downside is a $89 fee that is waived for the first year.

 

[Live And Learn]

I dont know which PenFed card it is but I have the Platinum Rewards cards. It gives 5 points for each gas$ 3 points per grocery$ (1pt on all other). HOWEVER, after looking at the gift cards they require 1200 points per $10 so its really not 5% and 3% (really 4% and 2.4%) but better than the 1% on my other card.

Which card is it ? I want the statement credit !

 

[pb4uski]

It's the Penfed Promise VISA Card. I think the gotcha is that there are no rewards other then the $100 signup bonus and no fees. My current rewards card costs me $65 a year but gives me 2% on everything.

 

[Cobra9777]

Personally, I would never chase a one-shot $100 statement credit. It's barely worth the trouble and the hard inquiry at the credit bureaus.

There are some great cash-back cards out there, many with no annual fee and equivalent or better upfront bonuses. I think with a little research, you could beat your current 2%, $65/yr card, and still get a nice upfront bonus.

We use a combination of 3 cards that earn $100-125 cash back every month, with no annual fees:

1. AMEX Blue Cash (5% on gas, grocery, and drug stores)
2. Fidelity AMEX (2% on all other purchases)
3. Fidelity VISA (1.5% on all purchases where AMEX is not accepted)

Based on our spending pattern, this works out to be 2.7-3.0% cash back with no annual fee.

 

[pb4uski]

I figure we could pick up $20 a month with a two card strategy (5% for gas and groceries and 2% for everything else) so it might be worth it. Whether, DW would go along is a different question.

Actually, the $65 fee/2% on everything is pretty good in comparison to the credit cards shown on the link in post #4.

 

[pb4uski]

....1. AMEX Blue Cash (5% on gas, grocery, and drug stores)...

Perhaps you're grandfathered at 5%, their website currently shows ($0 annual fee):

3% Cash Back at U.S. supermarkets, up to $6,000 per year in purchases (then 1%); 2% Cash Back at U.S. gas stations; 2% Cash Back at select U.S. department stores; and 1% Cash Back on other purchases.

 

[pb4uski]

Oops, here is a different Amex Blue that has a $75 annual fee:

Earn 6% Cash Back at U.S. supermarkets up to $6,000 per year in purchases (then 1%); 3% Cash Back at U.S. gas stations, 3% Cash Back at select U.S. department stores; and 1% Cash Back on other purchases.

 

[Live And Learn]

I don't pay a fee for any of my credit cards. The thought just goes against my LBYM nature. Now if they offered 10% cash back I'd definitely pay a $50 annual fee

 

[Cobra9777]

Whether, DW would go along is a different question.

I hear ya. The 3-card system took a few months of "training", but DW is now solidly on board.

Actually, the $65 fee/2% on everything is pretty good in comparison to the credit card link in post #4. There were two that were better if we only used one card, but not better by very much.

Do a Google search and check multiple sites. My experience is that some sites don't list all the available cards. You should be able to find a 2% no-fee card, to go along with AMEX Blue Cash or another "targeted/category" 5% card.

Perhaps you're grandfathered at 5%, their website currently shows:

I am. But my understanding is you can still get it. Copy and paste the following link (without quotes) into an "incognito" window in Chrome or a "private browsing" window in Firefox or IE. I don't know how or why this works, but it does.

"https://www304.americanexpress.com/credit-card/blue-cash/25330"

 

[Cobra9777]

Oops, here is a different Amex Blue that has a $75 annual fee:

Yes, that's the newer version (Blue Cash Preferred). If for some reason, you can't get the old no-fee 5% version, this is a good option also. It does have an annual fee of $75, but the grocery cash-back is slightly higher at 6% (capped at $6K/yr). The older version is still preferable IMO because the 5% applies to groceries (with no cap), gas, and drug stores; plus no annual fee. On the downside, the old version requires that you spend $6.5K before the higher reward levels kick in. We usually satisfy this requirement by using that card exclusively each new year until $6.5K is spent. Then we switch to the 3-card system.

And of course, there are other no-fee 5% "target/category" cards out there, like Chase Freedom, which seems to get very good reviews on several sites.

Also, I don't usually mess around with cards that offer points and miles, but I have a friend who swears the rewards are 2X higher than any cash-back cards, if you travel enough.

 

[freedomatlast]

Discover recently offered $100 cash back if you charge $1000 in purchases by the end of November.