PenFed Platinum Cashback Rewards for Students Card Review | CreditShout

PenFed Platinum Cashback Rewards for Students Card Review

By Dan Rafter / February 15, 2011

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Verdict: Not many credit cards designed for college students come with cash-back programs. The PenFed Platinum Cashback Rewards for Students credit card ranks as one of the exceptions. This card allows students to earn up to 5 percent cash back when they make purchases with their credit card. The only catch? Their parents have to be members of the Pentagon Federal Credit Union, a credit union open to members of the of the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies or the Veterans of Foreign Wars.

Overview: Students can open up this credit card account with a limit as low as $500. Parents might prefer this; it will keep their students from overspending too badly. The PenFed Platinum Cashback Rewards for Students card also comes with a purchase interest rate that is low by rewards-card standards.

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How This Card Works: Students have to be at least 18 years old and attending an accredited institution for higher learning to apply fro this card. They must also have parents who are members of the Pentagon Federal Credit Union. Students applying for the card must have a member of the credit union who has established credit act as a co-signer on their application.

Travel and Shopping Benefits: Students will earn 5 percent cash back whenever they use their PenFed card to make gas purchases at the pump. They’ll earn 1 percent cash back on all other purchases made with the card.

Fees: This student card comes with a solid purchase interest rate of 13.99 percent. The penalty interest rate jumps to 17.99 percent when students miss payments or fail to make their payments on time. Students can transfer an existing credit card balance to this card for just an introductory interest rate of 2.99 percent for 12 months. After this introductory period ends, balances will be assessed the standard 13.99 percent interest rate. Late- and returned-payment fees can run up to $25. The card charges no annual fee.

Pros:

  • No annual fee.
  • Reasonable interest rate.
  • Flexible rewards program.
  • Cons:

    • Students need a co-signer to take out this card.
    • Penalty interest rate of 17.99 percent.
    The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone. Additionally, the opinions of the commenters are not necessarily the opinions of this site

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