The Pathfinder offers PenFed members 4x points for all travel-related purchases -- 3x if you aren't an Honors Advantage member. You'll earn this rate on travel booked anywhere, a distinction that sets it apart from other cards like the Capital One Venture Rewards Credit Card and the Chase Sapphire Preferred® Card, which only offer higher rewards payouts for travel booked through the card provider's portal. Those bank-owned travel portals often require sacrificing hotel loyalty points you can earn from booking directly, so the PenFed card is more flexible if you're looking to earn travel points without strategizing or pairing up cards.
Regardless of membership status, this card offers 1.5 points in all other spending categories. That's a respectable across-the-board payout -- though not as high as other flat-rate credit cards -- but it is unfortunate that there are no higher rewards for dining out. If you travel often, you may also dine out at restaurants frequently. With that in mind, it's better to use one of the best restaurant cards to pick up those tabs or opt for a card that offers high rewards for both travel and dining out, like the Citi Premier® Card.
One significant downside worth considering -- the points you earn with the PenFed Pathfinder won't be worth more than 1 cent each. While many travel cards offer the ability to transfer points to a travel partner to boost their value, PenFed points are currently worth between $.0085 and $.01 each.
It's also a little trickier to redeem points with the PenFed Pathfinder. You can't redeem them for cash, which is a significant downside. Instead, you can redeem them for gift cards at more than 300 different retailers, use them to book travel in the PenFed Rewards portal, donate them to charity or shop with them at the Apple Store.
You can earn a welcome bonus of 50,000 points for spending $3,000 or more on purchases in the first 90 days of account opening. Depending on how you redeem this bonus, it's worth between $425 and $500. Compared to other travel cards, this is a solid immediate return, though the spending threshold is significant.
For example, the PenFed Pathfinder comes with a higher spending threshold than the $1,000 requirement on the Bank of America® Travel Rewards credit card, but the value of the reward can be twice as big. (You can earn 25,000 online bonus points when you spend $1,000 or more in purchases within the first 90 days of opening an account with the Bank of America Travel Rewards card.)
If you've been carrying a large balance on another credit card, the Pathfinder can help you transfer this balance to minimize or eliminate interest charges. The card offers a 0% 12-month introductory period for balance transfers (then 17.99%).
It's a solid offer, but it's not as good as other balance transfer cards -- many of which have significantly longer intro periods. You'll need to pay a fee of 3% of the amount transferred, a standard charge for this service, in exchange for 12 months to pay off your debt without interest.
We don't recommend transferring a balance if you can't repay it within a year since the card's 17.99% APR kicks in after the introductory period.
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.
In addition to PenFed Pathfinder's high travel points potential, the Pathfinder includes some additional features that may make traveling a little easier.
You won't be able to dodge the $95 annual fee with the Chase Sapphire Preferred, which can make the PenFed Pathfinder feel like a better option. However, it's easy to justify the $95 price tag if you can take advantage of the Sapphire Preferred's additional benefits. You'll get a $50 annual hotel credit for a stay booked through the Chase Ultimate Rewards travel portal, as well as 3x points on dining and 5x points for travel booked through the portal. (You'll earn 2x points for all other travel booked outside the portal.) It's a better pick if you want to earn higher rewards rates on both travel and dining out.
While the 1x point per dollar spent on other purchases is lower than the 1.5 points earned with the PenFed Pathfinder, Chase does offer a 25% boost in valuation when you redeem your points for travel via the Chase portal. While this is still a lower value than the Pathfinder, if you can take advantage of higher-tier travel and dining rewards, you could potentially earn more with this card. It all comes down to your spending habits. In addition, the ability to transfer points to a range of airline and hotel partners at a one-to-one ratio can also significantly increase the value of your Chase points in some cases.
The Bank of America Travel Rewards card doesn't come with an annual fee. Plus, the welcome bonus of 25,000 online bonus points ($250 in value) is easier to reach with a lower spending threshold of just $1,000 or more in purchases within the first 90 days of account opening. Additionally, if the balance transfer option on the Pathfinder appeals to you, BofA's introductory period is much longer – 18 billing cycles with an introductory 0% APR for any transfers made within the first 60 days of account opening (then 17.49% to 27.49% variable APR after).
However, there are areas where this card really falls short of the Pathfinder. While you can earn up to 3x points per dollar, you'll only qualify for this increased rate – up from the card's standard 1.5 points per dollar – if you book in the bank's travel portal. If you keep $100,000 or more (3-month combined average daily balance) in another Bank of America or Merrill account, you could earn up to 2.62x points per dollar on purchases -- but it's a steep requirement to earn higher rewards.
And, if you're looking for an all-in-one banking and credit card provider, PenFed's checking account rates beat Bank of America, so you may be better off sticking with this credit union.
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