Pen Fed Introduces New Cash Rewards Credit Card
There’s a new cash rewards credit card on the market, and it’s got no caps on spending, no hidden fees, and no revolving categories to keep track of.
The PenFed Power Cash Rewards Visa Signature Card gives members 1.5% cash back on every dollar they spend, in any category of merchant. Cardholders who have a PenFed Access America checking account, or who are in the military, get even more out of the card, with 2% cash back on all purchases.
PenFed president and CEO James Schenck touted the value of the new card, as well as the benefits of credit unions over big banks. Credit unions, which are owned by their members, often offer lower fees, or no fees, for their customers, and pride themselves on offering personalized service and better rates than traditional banks. “Too many credit card offers lure consumers in with promises of big rewards,” said Schenck in a statement announcing the new card. “But what they don’t tell consumers is that these cards contain hefty annual fees, high interest rates, and often the rewards are capped at a certain spending level or limited to restricted or rotating categories of purchases.”
The PenFed card aims to offer simple, transparent service to cardholders, along with great benefits and value. The flat cash back rate and lack of rotating categories makes it easy for cardholders to use, without having to sign up for special promotions or keep track of which merchant category is offering special rewards during with season.
The card has already been rated by reviewers as best of class in several categories, including best flat-rate cash back credit card, best cash back credit card for spending abroad, and best cash back credit card for members of the military.
The new PenFed card has no annual fee, an APR of 9.24% for folks with qualifying credit, and offers flexible reward redemption. Cardholders can choose to receive cash back as a statement credit, a direct deposit to their checking account, or an ACH deposit to a financial institution of their choice. This could also be a prepaid card or digital prepaid account, if they so desire.