PenFed Promise Credit Card Review

By Dan Rafter / February 15, 2011
PenFed Promise Visa

Verdict:

The PenFed Promise Credit Card doesn’t come with many frills.

What it does offer, though, is a low purchase interest rate. In fact, this card, issued by Pentagon Federal Credit Union, comes with no late-payment, returned-payment or annual fees, either.

This marks this as a strong card for consumers who want to pay as little as possible for their credit cards.

There is a catch, though: To apply for this card, consumers have to be members of the credit union.

And this particular credit union only serves members of the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies and the Veterans of Foreign Wars.

Overview:

This card is designed for consumers who want to pay the lowest rates possible.

It offers a low introductory purchase interest rate and, when this period is over, adjusts to an interest rate that is still far lower than what traditional consumer credit cards typically offer.

How This Card Works:

The PenFed Promise card doesn’t charge any transaction or penalty fees. However, like all credit cards, you will have to pay interest if you don’t pay off your balance in full every month. 

Travel and Shopping Benefits:

This card is not a rewards or a miles card. It also doesn’t offer any cash-back bonuses.

But this isn’t a negative.

This card is reserved for consumers who want a no-frills card that comes with the lowest rates possible. On that front, the PenFed Promise card delivers.

Fees:

The low purchase interest rate is the main selling point of this card.

For the first 36 months after consumers activate their cards, they’ll have a purchase interest rate of 7.49 percent. After this introductory period ends, the purchase interest rate will jump to a still low 9.99 percent.

The card also comes with no fees. 

This includes no annual fees, returned-payment fees or late-payment charges. Even cash advances come with no fees, though the interest rate on these is a high 17.99 percent.

The Bottom Line

Pros:

  • Industry-low purchase interest rates.
  • Introductory interest rate of just 7.49 percent for 36 months.
  • No other fees, including annual fees, returned-payment and late-payment fees.

Cons:

  • Only open to members of Pentagon Federal Credit Union.
  • No rewards programs.
  • No frills with this card.

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