If you’re looking for a cash-back credit card, this PenFed Power Cash Rewards Visa Signature Card review can help you determine if the card is right for you.
PenFed Power Cash Rewards Visa Signature® Card: Highlights
- No annual fee
- 2% cash back for Honors Advantage members and 1.5% back for everyone else
- $100 bonus offer for new cardholders
- Access to exclusive rewards and deals
- 0% APR balance transfer for 12 months
- 3% balance transfer fee
PenFed Power Cash Rewards Visa Signature® Card: Main Benefits & Perks
The PenFed Power Cash Rewards Visa Signature® Card offers many benefits, including the following.
2% Cash Back on Purchases if You Qualify
PenFed members eligible for an Honors Advantage membership can earn 2% back on all PenFed Power Cash Rewards Visa Signature® Card without any limits. To qualify for a membership, you must meet one of the following:
- Be an active military member
- Have an active PenFed checking account in good standing
If you don’t qualify for Honors Advantage membership, you can still earn an impressive 1.5% cash back on purchases.
Many Ways To Redeem Rewards
You can redeem your rewards in many ways, including a statement credit, a deposit into your PenFed bank account, or an external transfer to another bank account.
No Annual Fee
Many rewards credit cards have hefty annual fees to make up for the rewards paid. However, this PenFed credit card does not have an annual fee, nor does it have a limit on the rewards you can earn.
Introductory Offers
The PenFed Power Cash Rewards Visa Signature® card runs promotions for new cardholders to earn free money. The current promotion is for $100 if you spend $1,500 in the first 90 days you have the card.
0% Balance Transfer APR for 12 Months
New cardholders can get a 0% balance transfer APR for 12 months. However, there is a 3% fee for all balances transferred.
Access to Visa Signature® Discounts
Using your PenFed Power Cash Rewards Visa Signature® Card may make you eligible for exclusive deals and rewards at partner retailers. This includes shopping, dining, hotels, car rentals, and entertainment discounts.
PenFed Power Cash Rewards Visa Signature® Card: Main Drawbacks
As is the case with all credit cards, there are downsides to consider.
No Introductory APR on Purchases
If you were hoping to save money on a large purchase with a 0% purchase APR, you won’t find it with PenFed. They only offer the 0% intro APR on balance transfers, not purchases.
Not Everyone Earns 2% Cash Back
The credit card advertises a high 2% cash-back reward, but you must qualify for it by at least having a PenFed checking account unless you’re a military member.
Not to mention, you must be a member of the PenFed credit union; however, anyone is eligible with a $5 opening deposit in PenFed savings account.
3% Balance Transfer Fee
Even with the 0% APR on balance transfers, it will cost you. PenFed charges a 3% balance transfer fee on all balance transfers. That’s $3 for every $100 you transfer.
Small Welcome Bonus
While it’s a perk that PenFed offers a welcome bonus since not all credit card companies do, it’s small compared to other offers at only $100. You could likely find better promotions at banks that don’t require membership.
Who Is The Card Best For?
If you’re looking for a rewards credit card that doesn’t require you to track categories and doesn’t have an annual fee, you found it in the PenFed Power Cash Rewards Visa Signature® Card.
It’s best if you max out your rewards at 2% just by having a PenFed checking account, but even 1.5% is a nice perk when you don’t have to worry about which categories you’re spending to get the rewards.
Best Alternatives To PenFed Power Cash Rewards Visa Signature® Card
The PenFed Power credit card isn’t the only rewards credit card available. Here’s how other cards stack up.
Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card has no annual fee and pays an unlimited 2% back on all purchases. Cardholders also get a 0% APR for 15 months. This applies to purchases and balance transfers, and you don’t have to belong to a credit union to get it.
American Express Blue Cash Preferred® Card
The American Express Blue Cash Preferred® Card requires you to track categories, but you can earn an impressive 6% back on groceries up to $6,000 annually, 6% on streaming services, 3% on transit and gas, and 1% on everything else.
There’s no annual fee for the first year, but it’s $95 annually after the first year.
Citi Double Cash® Card
The Citi Double Cash® Card pays 1% back when you purchase items and another 1% when you pay your bill. There’s no limit on the amount you can earn, and they offer a 0% APR on balance transfers for 18 months.
Frequently Asked Questions
The PenFed Power Cash Rewards Visa Signature Card has many benefits. Here are some common questions we get about it.
Is the PenFed Power Cash Rewards Visa Signature® Card a Good First-Time Credit Card?
If you’re a PenFed credit union member, taking advantage of the PenFed Power Cash Rewards Visa Signature® Card makes sense.
It doesn’t have an annual fee and has some nice perks, especially if you have a PenFed checking account. However, if you don’t have any credit built up yet, it may be tough to qualify for.
Does the PenFed Power Cash Rewards Visa Signature® Card Have a Cash Back or Rewards Program?
Yes, the PenFed Power Cash Rewards Visa Signature® Card pays all cardholders 1.5% back on all purchases. But, if you’re a PenFed Honors Advantage Member, they pay 2% back on all purchases. All it takes to qualify is to have a PenFed checking account.
Does the PenFed Power Cash Rewards Visa Signature® Card Have an Intro APR Offer on Balance Transfers?
Yes, you can get a 0% APR on balance transfers for 12 months. However, there is a 3% balance transfer fee on any amount transferred.
Does the PenFed Power Cash Rewards Visa Signature® Card Do a Hard Pull?
PenFed does a hard credit pull if you apply for the card. This may hurt your credit score slightly at first, but if approved and if you use the card responsibly, you can get those points back pretty quickly.
How Do I Get the PenFed Power Cash Rewards Visa Signature® Card Sign-up Bonus?
To earn the $100 cash bonus, you must spend $1,500 in the first 90 days you have the card.
Does the PenFed Power Cash Rewards Visa Signature® Card Have Pre-Approval?
Yes, you can get pre-approved on their website and have an answer in seconds.
Can I Use the PenFed Power Cash Rewards Visa Signature® Card Anywhere?
You can use the PenFed Power Cash Rewards Visa Signature® Card anywhere Visa is accepted, which includes thousands of retailers and establishments.
Is the PenFed Power Cash Rewards Visa Signature® Card Best for You?
You can’t go wrong with the PenFed Power Cash Rewards Visa Signature® Card. It doesn’t have an annual fee, pays a $100 bonus if you meet the requirements, and offers a 0% APR on balance transfers.
If you aren’t a PenFed member and don’t plan to become one, there are alternatives that pay similar or even better cash-back rewards.