Platinum Rewards Visa Signature® Card review

If you’re looking to rack up points with everyday purchases, but don’t want to overspend on interest, the Platinum Rewards Visa Signature® Card is worth a careful look. This dependable credit union card offers one of the highest rewards rates available for gas and supermarket purchases, making it one of our favorite cards for everyday purchases. If your primary goal is to earn rewards in order to fund free travel, though, you may be disappointed. The Platinum Rewards card offers more flexibility than many rewards credit cards, but it charges onerous booking fees when you redeem points for travel.

The PenFed card’s availability is also limited. The Platinum Rewards card is only available to cardholders eligible for a Pentagon Federal Credit Union membership, including military service members, government employees and their families.

Excellent rewards rate

If you spend a lot on gas and supermarkets, but prefer to use credit for your purchases, it’s hard to go wrong with this family-friendly credit card. The Platinum Rewards Visa Signature card offers five points for every dollar you spend on gas purchases at the pump and electric vehicle charging stations, making it an ideal card to take with you on the road. It also offers three points for every dollar you spend on supermarket purchases (including most Target and Walmart locations), restaurants/dining, and cable, satellite and other pay television/radio/streaming services. All other purchases earn one point for every dollar spent. Amounting to just $.008 each, the Platinum Rewards card’s rewards points are worth slightly less than the average credit card rewards point, which typically goes for about a penny each. However, the points are still valuable enough to add up quickly – especially if you spend a lot on gas.

Enough points to fund an airline ticket

Despite the PenFed card’s slightly less generous points value, you don’t need to be a heavy spender to take home a substantial amount with this credit union card. For example, if you spend just $1,325 a month, we estimate you’ll take home roughly $288 a year, which is significantly more money than most rewards cards with similar terms offer.

Meanwhile, if you spend more than $1,325 a month, you’ll easily earn enough points to purchase a round-trip flight or lengthy luxury hotel stay – especially since the Platinum Rewards card doesn’t restrict how many points you can earn. In addition, Pentagon Federal Credit Union gives you a small head start in your card’s first year by offering you 15,000 points if you spend $1,500 – roughly $500 a month – in the first 90 days of the card open date.

Significant drawbacks for aspiring travelers

On the downside, Pentagon Federal Credit Union charges a sizable booking fee for cardholders who redeem points for travel, which drags down the card’s overall value and makes it less appealing as a travel rewards card. Like most lenders, Pentagon Federal Credit Union requires you to book travel through the credit union, limiting your ability to snag the best ticket for the least expensive price. In addition, it charges a $15 booking fee for online booking and a $25 booking fee if you book travel by phone. That’s the equivalent of spending an extra 1,875 to 3,125 rewards points just on booking travel.  A round-trip domestic flight, by comparison, costs around 50,000 rewards points.

Low fees and APR

The Platinum Rewards Visa Signature Card’s consumer-friendly terms are among its best features. Cardholders with the highest scores are charged a minimum APR of just 17.99 percent (variable), which is well below the average APR for a rewards credit card. The credit union also limits the number of fees it charges and doesn’t penalize cardholders nearly as much as some competitors. For example, it doesn’t charge a foreign-transaction or cash advance fee and it keeps the card’s late fees and penalty APR relatively low.

Why get the PenFed Platinum Rewards Visa Signature card?

• You want an affordable rewards card that you can depend on for everyday purchases.
• You spend a lot on gas and at supermarkets.
• You don’t plan to travel or don’t mind paying a $15 to $25 booking fee.

How to use the PenFed Platinum Rewards Visa Signature card:

• To maximize the card’s value, use it for all gas purchases at the pump and supermarket purchases.
• Consider signing family members on as authorized users in order to squeeze more rewards from your family’s monthly spending.
• Compare prices before you redeem points for travel. You may be better off shopping around for airfare and hotel stays and redeeming points for gift cards or merchandise.

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