The PenFed Promise Visa is a low-interest credit card which is a good choice for people who plan to make a large purchase in the near future or want to transfer an existing high-interest credit card balance to a new card. Cardholders pay none of the standards fees that most other credit cards charge. However, it is not a rewards cards so members do not earn cash back, miles or points on purchases. The PenFed Promise Visa currently offers a signup bonus for new members as well as a low introductory APR on balance transfers. It is issued by Pentagon Federal Credit Union and has no annual fee.
Important: New account holders are required to join Pentagon Federal Credit Union as part of the credit card application process. If you do not qualify for membership through your employment, association membership or from volunteering, it is easy to establish membership through either the National Military Family Association (one-time fee of $20) or Voices for America’s Troops (one-time fee of $15). Information for completing this necessary step is included on the credit card application.
New account holders can earn a $100 statement credit after spending $1,500 in eligible purchases within the first 90 days that your account is open. Note: To qualify, accounts must be approved and issued between January 1, 2016 and March 31, 2016. Eligible purchases are the total amount of transactions minus any credits, returns or fees. Cash advances, balance transfers and credit card checks do not qualify as purchases. Once the spending threshold is met, it may take up to four weeks for the statement credit to post to your account.
New members can take advantage of an introductory APR of 4.99% (variable based on the Prime Rate) for the first 12 billing cycles of your account on balance transfers. After this time, your variable APR will be between 7.99% and 16.99% depending on your creditworthiness at the time of approval. Members are never charged a balance transfer fee with the PenFed Promise Visa.
At this time, there is no introductory APR available on purchases. The variable APR will be between 7.99% and 16.99% again based on your credit score and other financial factors at the time of approval.
The PenFed Promise Visa delivers strong value by offering members these additional benefits:
- NO foreign transaction fee
- NO balance transfer fee
- NO cash advance fee
- NO late payment fee
- NO over-credit limit fee
To help combat fraud, members can register to receive card security text alerts which will notify you if an unusual transaction occurs on your account. You simply respond with a text message to validate the transaction or alert card security that the transaction was unauthorized.
The PenFed Promise Visa comes with EMV chip technology for greater security when using your card at chip-enabled terminals. This is especially useful when traveling internationally where smart chip technology has been in place for decades.
There is no annual fee associated with this card.
The Facts
Below we have broken down the specific details of the PenFed Promise Visa to help you determine if it’s a good choice for you.
The Good:
Signup bonus:
New members can earn a $100 statement credit after spending $1,500 in eligible purchases within the first 90 days that your account is open. Note: Accounts must be approved and issued between January 1, 2016 and March 31, 2016, to qualify for the bonus offer. Eligible purchases are the total amount of transactions minus any credits, returns or fees. Cash advances, balance transfers and credit card checks do not qualify as purchases. Once the spending threshold is met, it may take up to four weeks for the statement credit to post to your account.
Introductory APR:
New members can take advantage of an introductory APR of 4.99% (variable based on the Prime Rate) for the first 12 billing cycles of your account on balance transfers. After this time, your variable APR will be between 7.99% and 16.99% depending on your creditworthiness at the time of approval.
No fees:
- NO foreign transaction fee
- NO balance transfer fee
- NO cash advance fee
- NO late payment fee
- NO over-credit limit fee
Low APR on purchases:
Depending on your creditworthiness at the time you are approved, your variable APR will be between 7.99% and 16.99% on purchases. For people with good or excellent credit, the purchase APR can be much lower than what other credit cards offer.
No annual fee:
This card comes with no annual fee.
The Bad:
PenFed membership required:
New account holders are required to join Pentagon Federal Credit Union as part of the credit card application process. If you do not qualify for membership through your employment, association membership or from volunteering, it is easy to establish membership through either the National Military Family Association or Voices for America’s Troops. These organizations charge a one-time fee of $20 and $15, respectively, to join and while this isn’t terribly expensive, it is a cost you have to bear in order to apply for the card. More specific information is included on the credit card application.
No 0% introductory APR:
This card doesn’t have a 0% introductory APR on purchases or balance transfers but it does offer new members a relatively low 4.99% APR on balance transfers for the first 12 months. The overall APR range of 7.99% to 16.99% is still very competitive compared to most other credit cards.
The Ugly:
No rewards:
Members do not earn rewards on purchases with this card – no cash back, miles or points.
The PenFed Promise Visa is a simple credit card that offers a low, on-going interest rate and no hidden fees to its customers.
Even though it is not a rewards card, members do enjoy relatively low rates even after the introductory APR on balance transfers expires. This feature makes the PenFed Promise Visa a good choice if you are planning to make a large purchase relatively soon or want to transfer an existing high-interest credit card balance to a new card. Another strong selling point of the card – it charges absolutely no fees to its members.