2021 Review: PenFed Power Cash Rewards Visa Signature Card — Solid Rewards and Good Benefits

Our Rating: 4 Out of 5 Stars

We give the PenFed Power Cash Rewards card four out of five Stars. It provides an uncomplicated experience, rewarding you cash back for every purchase and featuring some helpful benefits.

Why We Like It

• Unlimited rewards
• No annual fee, no foreign transaction fee
• Introductory balance transfer APR
• Visa Signature benefits

Why It Could Be Better

• Balance transfer fee: 3% per transaction
• Must be a PenFed member to apply
• $1 fee for each paper statement received (you can opt for electronic statements instead)

The PenFed Power Cash Rewards Visa Signature® Card is a simple cash back credit card that earns 1.5% cash back on every purchase you make. If you’re a PenFed Honors Advantage member, you can earn 2% back.

There’s also a welcome bonus of a $100 statement credit after spending $1,500 in the first 90 days.

That’s really the purpose of this card: To earn rewards on everything you buy. It’s important to note, however, that you’ll have to be a PenFed member before you can apply for it.

And while the main goal of the PenFed Power Cash is to earn cash back, there’s an introductory balance transfer APR of 0% for 12 months, after which it’ll be 11.74% to 17.99% Variable. That might not prove overly useful to you, for reasons we’ll explain, but it’s good to know every facet of your card.

Read on to find out if this is the cash back card for you.

Insider Advice: Getting the Most Out of Your Card

• Use it for all of your spending: No need to worry about bonus categories here — this card gives the same flat-rate reward for every purchase you make, so you can be confident you’re getting a decent rate no matter what you’re buying.
• Become an Honors Advantage member: In order to get 2% cash back you’ll need to become an Honors Advantage member. To do so, you’ll need to be either currently serving in the military or a veteran, or you’ll need to open a qualifying PenFed bank account.
• Combine this card with other cards: While having a flat-rate cash back card is handy, it’s also good to have different rewards cards that earn more in specific bonus categories to get even more back from your spending.
• Get the welcome bonus: Spend enough in the first few months to earn a statement credit, which will reduce your account balance.
• Take advantage of the intro balance transfer offer (if you won’t use the card for rewards): You can transfer over a balance and get some time to pay down the debt while it accrues 0% interest. But this will cause you to lose your grace period, which means your purchases will begin accruing interest as soon as you make them. So, if you use the balance transfer offer, you probably shouldn’t use this card for regular purchases until the balance is paid off.

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Rewards

Earning

So no matter where you shop, you’ll be able to earn cash back at a decent rate. The welcome bonus gives a nice opportunity to earn a little more, so you should try and obtain it.

To get the extra .5% cash back, you’ll need to become a PenFed Honors Advantage program member. You have two options in order to do so: either have an eligible PenFed account, or have a military record.

As long as you’re the primary credit card holder and owner of an open checking account for any new or existing PenFed product (excluding PenCheck Limited accounts), you can enroll in the Honors Advantage program.

Or, you must be currently serving in the military, a member of the Reserves or National Guard, an honorably discharged veteran, or retired from the service.

Redeeming

You can redeem your cash back rewards in a few different ways:

• Receive a statement credit
• Deposit into a PenFed checking or share account
• Transfer to another financial institution (not available to non-military Honors Advantage participants)

The first two options, getting a statement credit or depositing into a PenFed credit union account, are probably your easiest bets.

The Benefits

The PenFed Power Cash Rewards comes as either a basic Visa card or a Visa Signature card, depending on your creditworthiness. If you’re approved for the latter version, that means it comes along with some pretty good benefits which we’ve outlined below. Otherwise, you can expect to receive reduced benefits.

Check the Guide to Benefits that came with your card to see the specific benefits available to you.

• Free FICO credit score: Cardholders can see their FICO NextGen Scores, from their Equifax credit reports.
• Fine Wine and Food: Access special food-related events and savings at more than 50 Sonoma Country wineries.
• Visa Signature Entertainment: Receive upgrades and savings on eligible events through Visa.
• Visa Signature Concierge: Need assistance with travel arrangements, finding tickets for concerts, or sporting events? How about where to grab dinner? Call 800-953-7392 and they’ll help with that and more.
• Emergency Card Replacement/Emergency Cash Disbursement: PenFed will replace your card and provide emergency cash to a location that is convenient for you.
• Extended Warranty: Get an additional year of manufacturer’s warranty on eligible products (if the warranty is three years or less).
• Purchase Security: PenFed will cover eligible purchases of up to $500 for 90 days after you make the purchase.
• Travel and Emergency Assistance Services: Get help coordinating medical, legal, and travel services while you’re away from home.
• Auto Rental Collision Damage Waiver: Provides coverage for collision damage and theft of eligible rented vehicles, when you decline the rental company’s own insurance
• Roadside Dispatch: Pay-per-use roadside assistance should you ever need it
• Travel Accident Insurance: You’ll be covered for accidental death or dismemberment while traveling for no additional cost, up to $100,000.

The Terms & Fees

There’s no annual fee or foreign transaction fee, and you get a 0% intro balance transfer APR. There is, however, a balance transfer fee, so you’ll still have to pay to make use of the offer.

It’s important to note that if you don’t pay off your balance in full by the due date, you’ll lose your grace period for new purchases. That means they’ll begin accruing interest as soon as they’re made, rather than giving you some time to pay them off first.

So if you plan on taking advantage of the introductory balance transfer offer, and carrying a balance from month to month, you’ll lose that grace period and your purchases will begin accruing interest.

You could either use this card for purchases or use it for the balance transfer offer, but you’d likely cost yourself some money if you used it for both at the same time. You’ll have to decide which route is best to take, depending on your current financial needs.

The Bottom Line

The PenFed Power Cash Rewards Visa Signature® Card provides up to a flat 2% cash back rate (as long as you become an Honors Advantage member, which is fairly easy to do). That’s about as good as it gets for a no annual fee flat-rate cash back card, so if that’s what you’re looking for, you could do worse.

However, if you’re looking for a balance transfer, you may be better off with a card that’s focused on that purpose. While this one does feature a solid offer for quite a while, there’s also a transfer fee.

There are dedicated balance transfer cards on the market that have longer 0% APR periods coupled with no transfer fees, and one of them would likely work better for paying off debt.

You’ll find some value in the Visa Signature benefits package, particularly from the concierge and shopping/travel protections. They may end up saving you more time and money than you’d expect.

So if you’re seeking a simple cash back card with pretty good rewards and perks, the PenFed Power Cash Rewards should make you happy. If you’re looking for anything else, you might want to continue your search.

Learn all about PenFed and its credit cards PenFed Credit Cards

How to Apply for the PenFed Power Cash Rewards Visa Signature Card

Simply click the “Apply Now” button below and you’ll be directed to the card issuer’s site. Follow its instructions and provide all the necessary info and you should typically hear back pretty quickly if you’ve been approved or not.

What Credit Scores Do You Need for the PenFed Power Cash Rewards?

Fair or average credit scores are recommended for a decent chance at approval with the PenFed Power Cash card. This means a FICO score of at least 580 or so, and a VantageScore of at least 650.

But keep in mind that credit approval relies on more than just your credit scores; other factors, like income, play a role too. So you may be approved with scores below that range, or even denied with better scores.

It’s worth mentioning that in the card terms, PenFed states the length of your membership is taken into account when determining your creditworthiness. Having been a member for longer will probably help, but it’s hard to say for sure how they’re taking it into account.

Qualifications and Requirements

• Must be 18 to apply
• Must be a PenFed credit union member
• Personal information: Name, date of birth, Social Security number, U.S. citizenship status
• Address and contact information: Home address and how long you’ve lived there, phone number, email address
• Financial information: Total annual income, monthly mortgage or rent payment