Our Verdict
The PenFed Credit Union Platinum Rewards Visa Signature® Card* earns big rewards in most areas of household spending. Cardholders earn 5 points per dollar spent on gas and electric vehicle charging stations, 3 points on groceries, restaurants, TV, radio, cable and streaming services and 1 point on all other purchases while paying no annual fee and no foreign transaction fees. The main downside with this card is that outside of the strong earning potential, it lacks meaningful perks.
Pros
- No annual fee
- No foreign transaction fees
- Earn 15,000 bonus points after spending $1,500 in the first 90 days of account opening
Cons
- Balance transfer fee
- No major extra benefits
- Limited redemption options, most notably no cash back options
Highlights
- Earn 15,000 bonus points after spending $1,500 in the first 90 days of account opening
- Earn 5 points per dollar spent on gas and electric vehicle charging stations
- Earn 3 points on groceries, restaurants, TV, radio, cable and streaming services
- Earn 1 point on other purchases
- No annual or foreign transaction fees
Introduction
The Platinum Rewards Visa Signature® Card* rewards rate of an unlimited 5 points per dollar spent on gas and electric vehicle charging stations, 3 points on groceries, restaurants, TV, radio, cable and streaming services and 1 point on all other purchases seems too good to be true. In this case, 5 points per dollar may be worth 5 cents in cash back, but it may still be a good rewards rate if you appreciate the available redemption options. PenFed is a credit union, but membership is open to everyone. However, you will need to pay $5 to open a membership account, but this can be done easily when you apply.
The redemption options for the PenFed Platinum’s rewards program do not include cash back and are limited to merchandise and services, travel and gift cards. The value of your rewards will vary based on the particular redemption you choose.
With few major extra benefits, the main benefits of this card are the generous rewards on everyday spending with no annual fee or foreign transaction fee.
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Quick Facts
- $0 annual fee
- Get 15,000 bonus points after spending $1,500 in the first 90 days of account opening
- Earn 5 points per dollar spent on gas and electric vehicle charging stations, 3 points on groceries, restaurants, TV, radio, cable and streaming services and 1 point on all other purchases
- No foreign transaction fees
PenFed Platinum Rewards Visa Signature Rewards
Earning Rewards
The Platinum Rewards Visa Signature® Card* earns 5 points per dollar spent on gas and electric vehicle charging stations, 3 points on groceries, restaurants, TV, radio, cable and streaming services and 1 point on all other purchases. There are no limits on the amount of rewards a cardholder can earn. Points earned will expire five years from the month in which they were earned.
There’s also a first-year welcome bonus of 15,000 bonus points after spending $1,500 in the first 90 days of account opening.
Redeeming Rewards
You may redeem your points for products, services or account benefits by logging into PenFed.org, going to your Platinum Rewards account and clicking “Redeem Rewards.” Available options include gift cards, merchandise or travel.
Rewards Potential
To determine the rewards potential of the PenFed Platinum credit card we must consider what an American household might spend on a credit card each year. Forbes Advisor uses data from various government agencies to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households bring in $116,000 annually and have in expenses $36,177 that can be charged to a credit card. We base spending on those numbers.
|
Category
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Earning Rate
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Estimated Annual Spend
|
Estimated Annual Earnings
|
|
Gas
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5X
|
$2,479
|
12,395 points
|
|
Restaurants, grocery stores and on TV, radio and streaming services
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3X
|
$11,280
|
33,840 Points
|
|
All other purchases
|
1X
|
$22,418
|
22,418 points
|
|
Total: 68,653 points
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|||
0% Introductory Rates
The PenFed Platinum card offers a 0% intro APR on balance transfers for the first 12 months of account opening, followed by a non-variable 17.99% APR. A variable APR of 17.99% applies on purchases and there's a 3% balance transfer fee.
Other PenFed Platinum Rewards Visa Signature Card Benefits
As a Visa Signature card, the PenFed Platinum comes with the following benefits:
- Cellphone protection. Receive theft and damage coverage for your cell phone as long your bill is paid on your credit card.
- Purchase security. Get a replacement, repair or reimbursement for eligible items of personal property up to $500 per claim for 90 days from the date of purchase due to covered reasons.
- Roadside dispatch. Get convenient pay-per-use roadside assistance for towing, tire change, jump start, lockout service and more, available 24 hours a day, 7 days a week.
- Golf discounts and privileges. Join Troon Rewards to get discounts on golf fees and merchandise at participating locations.
- Silvercar discounts: Receive discounts on luxury Audi rentals through Silvercar.
- Sonoma Wine Country benefits. Get year-round benefits and exclusive access at more than 50 select Sonoma County Visa Signature wineries.
- 24/7 fraud monitoring. PenFed will alert you to any suspicious activity immediately upon detection.
- 24/7 concierge. Call Visa Signature concierge service anytime for assistance.
- $0 fraud liability. Cardholders are not responsible for unauthorized charges.
Fine Print
Interest Rates
- Regular APR: 17.99% Variable
- Purchase intro APR: N/A
- Balance transfer intro APR: 0% intro APR on balance transfers for the first 12 months
Fees
- Annual fee: $0
- Balance transfer fee: 3% fee applies to each transfer
- Foreign purchase transaction fee: $0
How the PenFed Platinum Rewards Visa Signature Card Stacks Up
Platinum Rewards Visa Signature® Card* vs. Citi Double Cash® Card
The no annual fee Citi Double Cash® Card offers rewards to the tune of 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off. This flat-rate earning scheme may be simpler, but will primarily be much more favorable for those who want to redeem rewards as cash rather than redeeming points for a complicated, undisclosed amount on specific merchandise, travel or gift cards.
The Citi Double Cash® Card does charge a foreign transaction fee, but also offers a longer introductory APR on balance transfers than the Platinum Rewards Visa Signature® Card* does. The card offers a 0% intro APR on balance transfers for 18 months. After that, the standard variable APR will be 19.24% - 29.24%, based on creditworthiness. An intro balance transfer fee of either $5 or 3%, whichever is greater, applies to transfers completed within the first 4 months of account opening. After that, the fee will be 5% of each transfer (minimum $5).
Platinum Rewards Visa Signature® Card* vs. U.S. Bank Altitude® Connect Visa Signature® Card*
Another card offering gas as a bonus category is the U.S. Bank Altitude® Connect Visa Signature® Card*. It has a $0 introductory annual fee for the first 12 months, after that $95. It also has the following rewards rate: 5 points per dollar on prepaid hotels and car rentals booked directly in the Altitude Rewards Center, 4 points per dollar on travel and at gas stations through September 8, 2024, 2 points per dollar at grocery stores, dining and streaming services and 1 point per dollar on all other eligible purchases.
With a point redemption value of 1 cent per point, the Altitude Connect also has an explicit monetary point value definition, where the Platinum Rewards Visa Signature® Card* does not.
Though the annual fee may be unpalatable to some, the card’s other benefits are richer than those of the PenFed Platinum. The Altitude Connect offers a statement credit toward TSA PreCheck or Global Entry application fees and cell phone protection. The Altitude Connect also offers a robust welcome bonus: 50,000 bonus points after spending $2,000 in eligible purchases within the first 120 days of account opening.
Platinum Rewards Visa Signature® Card* vs. Chase Freedom Flex℠
Another no annual fee card with a tiered reward earning structure is the Chase Freedom Flex℠, which earns 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. It also offers a 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24% applies. Balance transfer fee of up to 5% (min. $5) of the amount of each transfer applies.
The Freedom Flex offers an array of benefits and perks the Platinum Rewards Visa Signature® Card* does not, including auto rental collision damage waiver, extended warranty protection and trip interruption or cancellation protection. This card also offers a higher welcome bonus to make it even more appealing.
Is the PenFed Platinum Rewards Visa Signature Card for You?
The PenFed Platinum Rewards Visa Signature’s lower earning potential and limited redemption option means that it can’t compete with rewards cards without those restrictions.
For those who are already a member or those willing to join the PenFed Credit Union, who spend heavily in the elevated rewards categories on the PenFed Platinum card and don’t mind the lack of a cash redemption option, this card may make sense. For everyone else, we recommend taking a look at some of the more straightforward cash-back credit card options.
Find the Best Credit Cards for 2024
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: Platinum Rewards Visa Signature® Card, U.S. Bank Altitude® Connect Visa Signature® Card. The card details on this page have not been reviewed or provided by the card issuer.
