Do you know with the PenFed Visa rewards card if you have to actually transfer a balance from another credit card, or can you actually take out the money yourself. Seems like if you could, even after paying the 2.5% balance transfer fee (capped at $100) that it might be a good opportunity for some arbitrage.
Hi Lee,
There are two rates they provide: the low rate applies to your transferred balance, but they’ve got a purchase APR that’s much higher: 13.99%. So you’d have to determine which rate it is you’ll end up having to pay when you perform any sort of arbitrage.
Of course, if anyone out there has the PenFed Visa card, we’d love to hear what you think!
Compared to a lot of 0 apr cards these days, PenFed cards aren’t as attractive IMO. Over the past year or so, Citibank, Discover and other card companies have released rewards cards that have very long intro periods with no interest rate charges (18 months to 21 months for some of them) and what appears to be reasonable long term aprs for good credit customers. The credit card industry is officially back to its old devices.
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Hi SVB,
Do you know with the PenFed Visa rewards card if you have to actually transfer a balance from another credit card, or can you actually take out the money yourself. Seems like if you could, even after paying the 2.5% balance transfer fee (capped at $100) that it might be a good opportunity for some arbitrage.
Hi Lee,
There are two rates they provide: the low rate applies to your transferred balance, but they’ve got a purchase APR that’s much higher: 13.99%. So you’d have to determine which rate it is you’ll end up having to pay when you perform any sort of arbitrage.
Of course, if anyone out there has the PenFed Visa card, we’d love to hear what you think!
Compared to a lot of 0 apr cards these days, PenFed cards aren’t as attractive IMO. Over the past year or so, Citibank, Discover and other card companies have released rewards cards that have very long intro periods with no interest rate charges (18 months to 21 months for some of them) and what appears to be reasonable long term aprs for good credit customers. The credit card industry is officially back to its old devices.