PenFed Power Cash Rewards Visa Signature® Card Review: A 2% Cash Back Contender

The PenFed Power Cash Rewards is either a great or excellent credit card, depending on which of its two rewards rates you can qualify for. Anyone accepted for the card can get at least 1.5 % cash back, which is decent on its own. However, those who meet certain eligibility criteria, which we outline below, can get a 2% cash back rate on all purchases, which is a rare sight among even the best credit cards.

Review: Our Thoughts On The PenFed Power Cash Rewards

The PenFed Power Cash Rewards is a good cash back credit card anyway you slice it. The base 1.5% cash back rewards rate is solid and competitive. It can hold its own against even the top cash back credit cards, including the Chase Freedom Unlimited℠ or Capital One® Quicksilver® Cash Rewards Credit Card. If you meet certain eligibility requirements, the card can give you a 2% cash back rate on all purchases, which is as good as any fixed-rate cash back credit cards gets. If you don't have the necessary qualifications to get the 2% rewards rate, consider applying for the Citi Double Cash Card instead.

The bonus on the PenFed Power Cash Rewards has room for improvement. Users can earn $100 after spending at least $1,500 on purchases within the first 90 days of account opening. Most cash back credit cards typically award a similar bonus for spending far less money. We typically see just a $500 spending requirement for a $100 prize. Therefore, you are working three times as hard to get the same bonus that you could get on other cards of this type.

One final feature worth noting is the card’s balance transfer capabilities. You can get a promotional 0% interest rate on balance transfers for the first 12 months your account is open. While that's a nice feature, if you are looking for a card to serve this function, there are far better options available. The best balance transfer credit cards offer longer 0% APR periods and some even waive the 3% transfer fee you’d have to pay with the PenFed Power Cash Rewards.

Bottom Line: The PenFed Power Cash Rewards is a fantastic new credit card, especially if you are a current/former military member. Those who can qualify for this card’s 2% rewards rate on all purchases will be hard pressed to find many other card offers that could top this it.

PenFed Power Cash Rewards Benefits & Features

The PenFed Power Cash Rewards offers up a 1.5% cash back rate on every purchase. If you have an Access America Checking Account or are a current, or former, military member you can receive 2% back. The card also has a $100 spend bonus that kicks in once you spend at least $1,500 within the first 90 days of account opening.

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Annual Fee	No Annual Fee
Purchase APR	9.24% to 17.99% Variable
Card Details	1.5% unlimited cash back on every purchase 2% cash back on every purchase as an Access America Checking account holder or as a current/former military member 0% promo APR for 12 months (3% fee applies to each transaction)

In addition to the cash back rewards, the PenFed Power Cash Rewards doubles as a balance transfer credit card. Cardholders can receive 12 months of 0% APR on debt they move over to this card. That gives a year of no interest to allow cardholders to pay down their principal debt. For the average indebted household, who currently carries around $16,000 in credit card debt, that can save approximately $1,551 over those 12 months – assuming the cardholder can afford $1,000 monthly payments and is moving from an APR of 15% (the national average).

Who Can Apply for the PenFed Power Cash Rewards

Like with all PenFed credit cards, you must be a PenFed member to apply for the PenFed Power Cash Rewards. If you serve in the United States military or uniformed services, are a U.S. government employee, or are related to someone who is, you probably qualify for membership.

If none of those things apply to you, it’s still possible the join by becoming a member of an eligible group. Civilians, for example, can join the National Military Family Association. Doing so costs a one-time $17 fee, and allows you to join PenFed.

To get this card, you also need to open a regular share account with at least $5 deposited to it.

How Does The PenFed Power Cash Rewards Compare To Other Credit Cards?

To get a better sense of how good the PenFed Power Cash Rewards is, we compared it to other credit cards available. Below we compared and contrasted the most relevant features for each match-up.

PenFed Power Cash Rewards vs Citi Double Cash Card

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The Citi Double Cash Card is one of the closest cards you can get to the PenFed Power Cash Rewards, without having to join PenFed. The card awards 1% cash back on all purchases, and another 1% back when those purchases are paid off. This effectively works out a rewards rate of around 2% on all your purchases. Because we advise all consumers to always pay off their bill in full each month, these cards should be equivalent. If for some reason you do carry a balance, however, the PenFed Power Cash Rewards provides an advantage, since it will give you cash back on all your spending, whether you paid it off or not. If you qualify for just the 1.5% rewards rate, the Citi Double Cash Card is the better card.

The Citi Double Cash Card does not come with any bonus, unlike the PenFed Power Cash Rewards. Therefore, assuming a 2% rewards rate on both cards, the PenFed Power Cash Rewards will provide consumers with the better short-term value, and a bigger gross return on spending overall.

PenFed Power Cash Rewards vs PenFed Platinum Rewards VISA Signature® Card

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The PenFed Platinum Rewards VISA Signature® Card is another flagship PenFed credit card, and it can be better for some consumers than the PenFed Power Cash Rewards. It all comes down to how you spend and your personal taste. Instead of cash back, this card awards 5 points per dollar at the pump, 3 points on all supermarket purchases, and 1 point per dollar elsewhere. How you use these points will greatly determine your rewards rate. For example, exchanging them for gift cards gives you about $0.008 per point, which works out to a 4.3%, 2.6%, or 0.08% rewards rate – depending on where you shop. So long as your average rewards rate comes out above 2%, you should get this card over the PenFed Power Cash Rewards. Figuring out that math may be tricky, so we suggest using one of our calculators instead.

Don't apply for the PenFed Platinum Rewards VISA Signature® Card unless you are willing to spend some time figuring out the best use (and value) for your points.

PenFed Power Cash Rewards vs Chase Freedom Unlimited℠

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The Chase Freedom Unlimited℠ is one of the best 1.5% cash back credit cards in the business. If we are comparing this card to the baseline 1.5% version of the PenFed Power Cash Rewards we have to give the slight edge to the Chase Freedom Unlimited℠. Because the card gives you Chase Ultimate Rewards points, instead of ordinary cash back, you are being paid in a significantly better rewards currency. If you ever decide to get a tier-2 Chase credit card, your points could be used towards more things at a higher value – including travel and transfers to airlines/hotels. Therefore, picking the Chase Freedom Unlimited℠ is like making an investment you hope will pay off in the future. Even if it doesn’t, you get as much as you would with the PenFed Power Cash Rewards.

The only exception to this rule applies if you can qualify for the 2% cash back rate on the PenFed Power Cash Rewards. In those scenarios, the Chase Freedom Unlimited℠ probably can't beat the PenFed card. Therefore, if you are a military member or have family who is, we highly recommend the PenFed Power Cash Rewards.

How Does The PenFed Power Cash Rewards Compare Based On How You Spend?

If you’re having a tough time deciding between all the options, feel free to use our comparison tool below. Input your estimated monthly spending into the calculator, and it will estimate the value of each card given your profile. This saves you from having to do all the calculations yourself. Note: We assume a 1.5% rewards rate on the PenFed Power Cash Rewards. If you can qualify for the 2% cash back on the card, simply multiply the estimate we give by 1.3 to get a better estimate.

RewardsNet Rewards RateAPRAnnual FeeBonus ValueRewards By MonthRewards Rate By Month

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Card	Annual Fee	Net Rewards Rate ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. The estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.	Bonus ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. The estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.	Rewards Value ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. The estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.
Citi Double Cash Card
	No Annual Fee	1.91%	$0	$686
Learn More	Graph Card	Read Review	More Details
Annual Fee No Annual Fee APR 12.99%, 17.99% or 22.99% Variable Card Details 1% cash back on purchases and another 1% cash back when you pay for those purchases Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 686 686 Total 686 686
Chase Freedom Unlimited℠
	$0	1.85%	$150	$665
Apply Now	Graph Card	Read Review	More Details
Annual Fee $0 APR 15.49%-24.24% Variable Card Details Unlimited 1.5% cash back on every purchase - it's automatic Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.49-24.24%. Balance transfer fee is 5% of the amount transferred, $5 minimum Redeem for cash - any amount, anytime Cash Back rewards do not expire as long as your account is open No annual fee Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 51,480 515 Bonuses 0 150 Total 51,480 665
Capital One® Quicksilver® Cash Rewards Credit Card
	$0	1.71%	$100	$615
Apply Now	Graph Card	Read Review	More Details
Annual Fee $0 APR 13.49% - 23.49% (Variable) Card Details One-time $100 cash bonus after you spend $500 on purchases within 3 months of approval Earn unlimited 1.5% cash back on every purchase, every day No rotating categories or sign ups needed to earn cash rewards; plus, cash back doesn't expire and there's no limit to how much you can earn 0% intro APR on purchases for 9 months; 13.49%-23.49% variable APR after that Balance transfers also have a 0% intro APR for 9 months; 13.49%-23.49% variable APR after that; a 3% fee applies to each balance transferred Pay no annual fee or foreign transaction fees Note: The information in this box was provided by Capital One® and is not part of our independent analysis. Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 515 515 Bonuses 0 100 Total 515 615
PenFed Power Cash Rewards
	No Annual Fee	1.71%	$100	$615
Apply Now	Graph Card		More Details
Annual Fee No Annual Fee APR 9.24% to 17.99% Variable Card Details 1.5% unlimited cash back on every purchase 2% cash back on every purchase as an Access America Checking account holder or as a current/former military member 0% promo APR for 12 months (3% fee applies to each transaction) Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 515 515 Bonuses 0 100 Total 515 615
PenFed Platinum Rewards VISA Signature® Card
	No Annual Fee	1.54%	$0	$555
Apply Now	Graph Card		More Details
Annual Fee No Annual Fee APR Card Details Estimated Rewards Through 24 Months Card Rewards Dollars* Spending Rewards 69,360 555 Total 69,360 555

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• Chase Freedom® Credit Card
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• Review
• Benefits & Features
• How Does The PenFed Power Cash Rewards Compare to Other Cards?
  • vs Citi Double Cash Card
  • vs PenFed Platinum Rewards VISA Signature® Card
  • vs Chase Freedom Unlimited℠
• How Does The PenFed Power Cash Rewards Compare Based On How You Spend?