PenFed Rewards – We check out Pentagon Federal Credit Union’s American Express Premium Travel Rewards credit card

Posted on December 9, 2014 by in Travel Deals

What's PenFed?

The Pentagon Federal Credit Union, or PenFed, is a credit union that was established in 1935 to provide financial services with members' interests in mind, rather than those of the shareholders. The non-profit company offers mortgages, auto loans, credit cards, checking accounts and much more.

What's the PenFed Rewards card?

There's more than one PenFed Rewards card. There's the Travel Rewards card, the Point Rewards card and the Cash Rewards card. We take a look at the Travel Rewards card, which is known as Pentagon Federal Credit Union's American Express Premium Travel Rewards credit card.

Tell me about the PenFed Travel Rewards credit card

It gets pretty good reviews and Card Hub recently identified this PenFed Rewards credit card as one of the best airlines rewards cards for this winter and for holiday travel.

The sign-up bonus is 20,000 points when you spend $2,500 in the first three months and there's no annual fee. Here's the lowdown on the card:

– Earn 5 points per dollar spent on airfare purchases
– Earn 1 point per dollar spent on everything else
No foreign transaction fees
4.99% APR balance transfer rate for 12 months, then 9.99% variable
3% balance transfer fee per transfer
2 free Lounge Club visits at global airports when you spend $15,000
– 24-hour concierge service
Travel insurance, car rental insurance and roadside assistance
Travel offers from the AmEx Travel Privileges program
– Mailed paper statements are $1 each, but this can be avoided by signing up for free electronic statements

What else do I need to know?

To apply for the PenFed American Express Premium Travel Rewards credit card, you need to be a member. To be eligible for membership, PenFed look at your employment, if you're in the armed forces, if you have a relative who is eligible and so forth.

You can apply to be a member of the credit union here; there may be a nominal membership fee.

Is the PenFed Rewards card a good choice?

The sign-up bonus, no annual fee, no foreign transaction fees and low APR are all good reasons to go for this Travel Rewards card. Plus 5 points per dollar on airfare is a good boost for travelers.

It's a pity that the introductory balance transfer APR isn't 0% like many other credit cards, but the other card benefits outweigh this. Credit union cards tend to be more consumer-friendly overall, so applying for this card may be a step in the right direction.

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