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PenFed Power Cash Rewards Visa Card Review: Competitive Cash Rewards and a Balance Transfer Offer

Review Updated
Lyle Daly
By: Lyle Daly
Lyle Daly
Lyle Daly
Writer

Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.

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Our Credit Cards Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

The PenFed Power Cash Rewards Visa Signature® Card provides useful perks for the credit union's loyal customers. It earns up to 2% cash back on purchases and lets you refinance credit card debt at a 0% intro APR. With no annual fee to boot, this card is a good money saver. Read on for all its features and areas of opportunity in our PenFed credit card review.

Ratings Methodology

PenFed Power Cash Rewards Visa Signature® Card

PenFed Power Cash Rewards Visa Signature® Card
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Excellent (740-850)
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Excellent (740-850)

Intro APR

Purchases: N/A

Balance Transfers: 0%, 12 months

Regular APR

16.49% - 17.99%, variable

Rewards Circle with letter I in it. 2% cash back on all purchases through the PenFed Honors Advantage program 1.5% unlimited cash back on all purchases

1.5% - 2% cash back

Annual Fee

$0

Welcome Offer Circle with letter I in it. $100 statement credit after spending $1,500 in purchase transactions within the first 90 days of account opening

$100

  • The rewards program can be rich, but the true benefits accrue to you if you are a PenFed Credit Union member.

    • Rewards
    • 0% intro balance transfer APR
    • No annual fee
    • Purchase protection
    • Mediocre sign-up bonus
    • No 0% intro purchase APR
    • Requires PenFed membership
    • $100 statement credit after spending $1,500 in purchase transactions within the first 90 days of account opening
    • 2% cash back on all purchases through the PenFed Honors Advantage program
    • 1.5% unlimited cash back on all purchases
    • Flexible cash redemption options (Power Cash statement credit or cash-out to a checking or savings account)
    • No caps, limits or category restrictions on cash rewards

Credit card comparison

We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.

Offer Our Rating Welcome Offer Rewards Program APR Learn More
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for cash back on rotating categories 		Discover will match all the cash back you've earned at the end of your first year. Circle with letter I in it. N/A 1% - 5% Cashback Circle with letter I in it. Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.

Intro:

Purchases: 0%, 15 months

Balance Transfers: 0%, 15 months

Regular: 18.24% - 28.24% Variable APR

Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for cash back 		Up to $300 cash back Circle with letter I in it. Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases. 1.5% - 5% cash back Circle with letter I in it. Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases

Intro: Circle with letter I in it. 0% Intro APR on Purchases and Balance Transfers for 15 months

Purchases: 0% Intro APR on Purchases, 15 months

Balance Transfers: 0% Intro APR on Balance Transfers, 15 months

Regular: 20.49% - 29.24% Variable

Apply Now for Chase Freedom Unlimited®

On Chase's Secure Website.

Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for earning travel rewards 		75,000 Miles Circle with letter I in it. 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening 2X-5X miles Circle with letter I in it. Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.

Intro:

Purchases: N/A

Balance Transfers: N/A

Regular: 19.99% - 29.99% (Variable)

Apply Now for Capital One Venture Rewards Credit Card

On Capital One's Secure Website.

Rates & Fees External Link Icon

Full PenFed Power Cash Rewards Visa Card review

This credit card is a good fit for: Consumers who do their banking with PenFed Credit Union and want a credit card with a high cash back rate.

Top perks

You'll enjoy several great benefits as a cardholder of the PenFed Power Cash Rewards Visa Signature® Card.

Earn up to 2% back

This PenFed credit card earns 2% cash back on purchases for PenFed Honors Advantage Members. If you're not a member, then it earns 1.5% back on purchases.

While either is a good rate, the higher rate ranks with the best cash back credit cards. Fortunately, it's easy to become a member of PenFed Honors Advantage. There are two ways to qualify:

  • PenFed Access America Checking Account: Open this type of checking account or use your existing account if you already have one. There's no monthly service fee if you maintain a daily balance of at least $500 or set up a monthly direct deposit of $500 or more.
  • Military service: This applies if you're the primary cardholder and you're active duty, reserve, honorably discharged, or retired military.

0% intro APR on balance transfers

You get an intro APR of 0% on balance transfers for the first 12 months after opening the credit card account. There is a balance transfer fee of 3% per transaction.

A balance transfer works well if you're trying to get out of credit card debt. Instead of paying down balances at an interest rate of 18% or more, you can transfer them to your PenFed card. Then, you'll have 12 months to work on your debt at a 0% APR. Just note that some balance transfer credit cards offer an intro period longer than 12 months.

Learn more: A Complete Guide to Balance Transfers

$100 sign-up bonus

The PenFed Power Cash Rewards Visa Signature® Card offers a $100 statement credit when you spend $1,500 in the first 90 days. As long as you hit the spending requirement, this is an easy way to save $100.

No annual fee

If you're trying to keep costs down, no annual fee credit cards are exactly what you need. There's no yearly fee for this PenFed credit card, so you can carry it free of charge.

Purchase protection

Eligible items bought with your PenFed Power Cash Rewards Visa Signature® Card are covered by purchase security. This policy protects against damage or theft within the first 90 days, up to a maximum of $500 per claim and $50,000 per cardholder.

No foreign transaction fee

For travelers, it's important to have a credit card that doesn't charge you more for international transactions. Since it doesn't have a foreign transaction fee, this PenFed credit card is a good choice.

What could be improved

There are some areas where PenFed could make this rewards credit card better.

Mediocre sign-up bonus

One place where the PenFed Power Cash Rewards Visa Signature® Card fails to measure up is its sign-up bonus. It's not a bad bonus, but there are better sign-up bonus offers from other cards.

Several no annual fee credit cards have introductory bonuses of $150, $200, or even $250, and most of them also have smaller spending requirements than this particular PenFed card.

No 0% intro APR on purchases

Although this credit card offers a 0% intro APR on balance transfers, it doesn't offer that deal on purchases you make. If you want to gradually pay off a big expense, check out 0% APR credit cards with intro offers that cover purchases.

Requires PenFed membership

To apply for the PenFed Power Cash Rewards Visa Signature® Card, you must be a member of PenFed Credit Union. Compared to major credit card companies that don't have this requirement, it's an extra hurdle.

It's not a huge roadblock, though. Anyone in the U.S. can join PenFed Credit Union by opening a savings account with a minimum deposit of $5. The credit union's Premium Online Savings account has an interest rate comparable to the best savings accounts and no monthly maintenance fee. It's a quality product and not just an account you'd never want to use.

Suggested credit score

A FICO® Score of at least 740 is recommended for the PenFed Power Cash Rewards Visa Signature® Card. Successful applicants generally have a credit score that falls within the excellent credit range.

PenFed looks at many factors during the credit card application process. In addition to your credit history, it also heavily weighs your annual income and your relationship with the credit union. If you're a long-time customer, that can help your approval odds.

The PenFed Power Cash Rewards Visa Card is right for you if:

You like PenFed and you want to have your credit card and bank accounts with the same financial institution.

The PenFed Power Cash Rewards Visa Signature® Card is good for earning rewards, since it offers rich cash back on purchases. It also has a solid balance transfer offer available. There are, however, top credit cards that offer just as much or more, without requiring that you sign up for a membership first.

Although this PenFed credit card may not be the most valuable card on the market, it has some quality benefits. That's enough to make it worthwhile for PenFed fans who'd like to keep their financial products under one roof.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.