PenFed Platinum Cash Rewards Card is changing

[Sue J]

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.

 

[ziggy29]

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.

 

[REWahoo]

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.

 

[BigMoneyJim]

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.

 

[ChadR]

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.

 

[Lakedog]

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).

 

[Amethyst]

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

 

[brewer12345]

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.

 

[BigMoneyJim]

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.

 

[Amethyst]

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

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.

 

[Nords]

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.

 

[Dawg52]

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.

 

[BigMoneyJim]

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.)

 

[james7]

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.

 

[Nords]

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.

 

[REWahoo]

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:

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...

 

[Dawg52]

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.

 

[Nords]

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!

 

[Amethyst]

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

And in your case, the credit-card crooks will be twice as happy!

 

[REWahoo]

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...

 

[Amethyst]

OMG, somehow I missed that story. Sheesh, everywhere you turn, eh?

A.

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...

 

[Spanky]

It's disappointing. We will switch since getting higher points (though not as convenient) is better than the 0.25% cash back.

 

[Beryl]

Smugly go to Costco for produce and walk out with $500+ after cashing the Amex cash-back 'check'. Paid balances in full monthly and it's all good.

I just got this offer:
Cash Back Credit Card for Excellent Credit
Citi® Dividend Platinum Select® Visa - $200 Cash Back
$200 cash back after $500 in purchases within the first 3 months of account opening
1-5% cashback on purchases
No Annual Fee

After paying a couple of bills and receiving the $200 cash back teaser, I'll probably return to my old Amex because it looks like a little too much work to get the 5% cashback.

 

[Sue J]

The details for the reward program were posted -
https://www.penfedplatinumrewards.com/ip-pf/

I'm really only interested in the VISA prepaid cards which are redeemable at $50/100/250/500. I see you can also get Amazon cards which I may also use.

Or do I want the Rolex.......
https://www.penfedplatinumrewards.c...8Z34&catId=21597&redId=294151&roCode=M1083328

 

[gauss]

Regarding the $50/100/250/500 VISA prepaid cards:

Has anyone deteremined if there are restrictions on the ability to perform over the counter cash advances at Visa Member Banks when using these paritcular cards?