PenFed Pathfinder Rewards Card: Premium Credits, With a Few Caveats
The Bottom Line
5.0
If you don't mind joining a credit union first, this card packs a big punch, even when compared with more expensive competitors. But point values vary, and you can't redeem for cash back.
Rates, fees and offers
Annual fee
$95
Rewards rate
1.5x-4x
Bonus offer
50,000 bonus points after spending $3,000 in purchase transactions within the first 90 days of account opening.
Intro APR
0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%.
Ongoing APR
APR: 17.99% Variable APR
Balance transfer fee
3% fee applies to each transfer
Foreign transaction fee
0%
More details from Pentagon Federal Credit Union
- Earn more everywhere you go!
- 50,000 Bonus Points when you spend $3000 in the first 90 days
- Up to $799 total Travel value
- 4X Points on all Travel categories for PenFed Honors Advantage Members
- 3X Points on all Travel categories
- 1.5X Points on all other purchases
- 0% Balance Transfers Promo APR for 12 months, 3% fee applies to each transaction. Subject to credit approval. 0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. A 3% balance transfer fee applies to each transfer. This transaction is subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.
- Annual Fee: $95 (waived for existing PenFed Honors Advantage Members)
- Purchase Variable APR: 17.99%
- Refer to PenFed.org for Terms/Conditions
Pros and Cons
Pros
High rewards rate
Intro APR period on Balance Transfers
No foreign transaction fee
Cons
Has annual fee
Membership required
Can't redeem for cash back
Detailed Review
Travel credit cards with top-notch perks are usually reserved for those willing to pay a steep annual fee. But the PenFed Pathfinder® Rewards Visa Signature® Card can be an exception. Despite its sticker price — a $95 annual fee — PenFed will waive that cost if you meet eligibility requirements. (More on that below.)
Even if you aren't able to dodge that fee, it's still a competitive card. You'll get valuable travel credits, benefits and protections that make it easier to get out of town. And, you'll earn a solid rewards rate, even on non-travel-related spending. All of these features help earn the card a spot in our roundup of the best credit union credit cards.
But as is typical of those kinds of cards, you have to be a credit union member before you can get this one. And while it's not terribly difficult to join the PenFed Credit Union, there are some other potential drawbacks to consider when it comes to redemption options and values.
PenFed Pathfinder® Rewards Visa Signature® Card: Basics
Card type: Travel.
Annual fee: $95 (This is waived for PenFed Honors Advantage members. Details below).
Sign-up bonus: 50,000 bonus points after spending $3,000 in purchase transactions within the first 90 days of account opening.
Rewards:
3 points back on travel purchases (4 points back on travel for PenFed Honors Advantage members).
1.5 points back on all other purchases.
To have the annual fee waived and to earn rewards on travel purchases at the higher 4X rate, you must be a PenFed Honors Advantage member, which requires military service or a PenFed Access America checking account.
You can redeem rewards for travel, gift cards, merchandise and charity donations. (Notably, cash back is not an option.)
APR: 0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%.
Foreign transaction fee: None.
Balance transfer fee: 3%.
Other benefits:
$100 annual domestic air ancillary travel statement credit, for use toward baggage fees, lounge access and onboard food and drinks.
Statement credit every four years for reimbursement of application fee for TSA Precheck ($85) or Global Entry ($100).
Complimentary Priority Pass airport lounge annual membership.
Compare to Other Cards
Benefits and Perks
High rewards rates, broad definition of travel
When it comes to ongoing rewards, the PenFed Pathfinder® Rewards Visa Signature® Card offers the best of both worlds. You'll earn an elevated rate in a bonus category — at least 3 points back on travel purchases, and potentially 4X back if you qualify — but you'll also earn a higher-than-normal flat rate of 1.5 points back on everything else you buy. That's unusual among tiered rewards cards, which normally offer just 1 point back in non-bonus categories. Among travel purchases eligible for the highest rewards rate: airfare, hotels, car rentals, cruises, tolls, bus lines, and taxis or rideshare services like Uber or Lyft.
An avoidable annual fee
It is exceedingly rare for a card to offer premium travel credits for no cost, but it's possible with the PenFed Pathfinder® Rewards Visa Signature® Card. You dodge the $95 annual fee if you qualify for the PenFed Honors Advantage program, either as a member of the military or by having a PenFed Access America checking account — in which case, you'll also qualify for richer rewards on travel.
It's an extra hoop to jump through (on top of already having to join a credit union), but given the value you get in exchange, it can absolutely be worth it.
$100 annual credit toward ancillary airline fees
This credit is only for qualifying domestic airlines, and you can't use it toward airfare. But you can apply it toward other costs, including baggage fees, in-flight food and beverage purchases, airport lounge day passes, pet kennel fees, flight change fees and phone reservation fees. (Eligible airlines include American, Delta, Southwest, United and more.)
Even if you aren't able to get the card's annual fee waived, this credit alone is enough to offset that cost.
Additional travel perks and benefits
You'll get a statement credit that covers the cost of the application fee for TSA Precheck or Global Entry. (You must use the card to pay the application fee.) You'll also have get a complimentary Priority Pass membership (though you generally still have to pay to enter a lounge). Travel assistance, car rental insurance, trip delay reimbursement and other protections are all available as benefits while you're on a trip. There are no foreign transaction fees, and because the card runs on the Visa network, international acceptance is widespread.
Drawbacks and Considerations
Membership is required
You must become a PenFed credit union member when applying for the card if you aren't one already. Everyone is eligible to join, but it does require a few extra steps. You'll have to submit an application and open a PenFed checking account. If you want a no-annual-fee travel credit card that doesn't require jumping through any hoops, take a look at the $0-annual fee Bank of America® Travel Rewards credit card. It earns 1.5 points per $1 spent on purchases. Points are worth 1 cent apiece when redeemed for travel or restaurant purchases.
Limited redemption options, so-so point value
Because points you earn on the PenFed Pathfinder® Rewards Visa Signature® Card don't have a set value, how much value you get out of the card will depend on how you redeem your rewards. But as of June 2024, you could redeem points multiple ways for a little more than .8 cent a piece, well below the industry standard of a penny per point. What's more: you can't redeem your rewards for cash back.
If you want a travel card with more flexibility, consider the Discover it® Miles. It has an annual fee of $0, and it earns 1.5 miles per dollar spent on all purchases. It doesn't offer perks like travel credits, but you can redeem points for travel or gift cards at the same value of a penny each. The card also has a generous welcome offer: UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers—only from Discover. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. You could turn 35,000 Miles to 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.
How To Decide If It's Right For You
If you travel a lot, don't mind joining a credit union and can get use out of its valuable perks, the PenFed Pathfinder® Rewards Visa Signature® Card is a good pick. It's an even better pick if you're an Honors Advantage member because PenFed waives the $95 annual fee and you'll earn richer rewards on travel purchases.
But if you're not interested in meeting all those necessary requirements and you'd like a little more flexibility when it comes to redemption options, you may want to consider other possibilities. To see how this card compares against the competition, take a look at NerdWallet's roundup of best credit card deals.
This card earns 1.5 miles per dollar spent on all purchases. Miles can be redeemed for travel at a rate of a penny a point — or you can redeem them for cash back at the same value. The annual fee is $0, and there's a bonus offer for new cardholders that gets sweeter the more you use the card: UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers—only from Discover. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. You could turn 35,000 Miles to 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.
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Methodology
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