Is PenFed Visa a good credit card? I found it on the Internet offering 5 percent gas rebates and it looked enticing.

By , CardRatings Contributor

Our credit card articles, reviews and ratings maintain strict editorial integrity; however we may be compensated when you click on or are approved for offers (terms apply) from our partners. How we make money.

Pentagon Federal Credit Union's PenFed Platinum Cash Rewards Visa® Card offers one of the very best cash back programs on the market, though you'll have to jump through a few hoops to earn one.

PenFed's Plus version offers up to 5 percent cash back when you "pay at the pump" for gas. For the Plus Card you will need to have an active qualifying PenFed product for example an active checking account with direct deposit ($250 min.); a money market certificate or IRA certificate; a mortgage; an installment loan to name a few. There is no annual fee with the Plus Card. The Standard Card offers 3 percent cash back on gas purchases paid at the pump with an introductory annual fee of $0 for the first year then an annual fee of $25. Both the Plus and Standard Card are simple, money-saving cards with no time-consuming promotional offers that require quarterly enrollment. Note that fuel purchases for airplanes and boats do not receive cash back rewards.

The credit union's own marketing material points out that their finance charges beat nearly every other cash back card on the market. You'll get the most value from your account if you pay down your balance every month after using the card to pay for routine household expenses or for business travel.

The only exception is Pentagon Federal offers seasonal balance transfer specials that can bring your interest rate down to the low single digits. If you want to enjoy one of the most generous gas rebate credit card offers while saving money on an existing balance, time your application during one of the credit union's promotional periods.

To understand why the PenFed Platinum Cashback Rewards Visa® Card can provide cardholders with such a great deal, it pays to learn about the card's heritage. Pentagon Federal Credit Union typically serves military families, especially married couples who must deal with the challenges of being separated during active deployment. As a nonprofit organization, PenFed doesn't have to worry about pleasing Wall Street bankers or fickle shareholders. Instead, it can afford to design credit card programs that pass along savings directly to members.

Earning membership in Pentagon Federal Credit Union requires dedication to our country and commitment to strong personal finance. If you're not part of a military family, you can make a one-time donation to a nonpartisan military support charity for eligibility consideration for credit union membership. After that, you'll need excellent credit to be considered for one of PenFed's cash back cards for your wallet. If your credit score still needs some work, you may be eligible for one of the credit union's other credit cards and personal banking services to help pay down your debt.

If you are interested in this offer review the terms and conditions on the PenFed application page to determine if this card will fit your needs.


Be the first to comment!

Select Your Credit Score:
(Ok to Guess)
None/Limited I don't Know

Featured Partner Cards

  How is your credit?
Oops! Your credit does not qualify you for this card. Applying and being rejected for this card could possibly hurt your credit
We are redirecting you to offers you are qualified for based on your credit.
CardRatings is excited to announce the launch of the
100% Free CardRatings Email Course to Learn How to Maximize Travel Rewards.

Created in partnership with ChooseFI

We partnered with ChooseFI to combine CardRatings’ offer expertise with ChooseFI’s tried and true travel rewards strategies. Get to know ChooseFI: they have changed tens of thousands of lives and recently won Podcast of the Year at FinCon.
You may think you are a rewards travel expert, but rewards strategies are changing (e.g., the days of card churning and manufactured spending are numbered). Learn powerful, sustainable strategies (a couple of which even you die-hard travel experts might not know). You'll be so glad you did.
We're planning more courses for the future; this is just the beginning of our journey.