Travelers who make frequent airline purchases should always be trying to maximize the rewards they are receiving from their credit card spending. While airline most credit cards will offer double miles for spending on airfare at that airline, cardholders cannot count on receiving consistent value for their miles when it comes time to redeem them for award flights. The Premium Travel Rewards American Express from PenFed offers an incredible bonus for airfare purchases from any airline, as well as a fixed value for airfare redemptions.
How This Card Works
For each dollar spent, cardholders will earn a single point in PenFed’s Premium Rewards system, with five points per dollar is earned through any airline purchase. New cardholders will also receive a sign up bonus of 20,000 points after purchasing at $650 within the first three months of opening an account. When it comes time to redeem points, card members can choose between many different travel, gift card, experience, and merchandise rewards. Most of these redemption opportunities will return a single cent in value for each point, but airfare redemptions will return 1.6 cents in value. Card holders will also receive travel benefits from American Express, as well as membership in the Priority Pass international lounge discount program, so long as they spend $15,000 on their card each calendar year.
This card comes with a promotional balance transfer rate of 4.99% for 24 months, with a balance transfer fee of 3%. Interestingly, this fee is capped at maximum of $250. Subsequently, card members will receive an interest rate equal to the Prime Rate plus 10.74% APR on purchases and balance transfers. There is no annual fee, cash advance fee and no foreign transaction fee for this card.
Advantages
With five points earned for each dollar spent on airfare, and 1.6 cents in value returned for each point redeemed, cardholders can enjoy an amazing eight cents in airfare awards per dollar spent with airlines. The Priority Pass benefit will entitle customers to two free airport lounge visits each year, and unlimited discounted day passes. Although this card is not issued by American Express, customers still enjoy many of the travel protections offered to American Express’s customers. Like all PenFed products, there are very few fees for this card.
Disadvantages
Most purchases only return a nominal one point per dollar, and most redemption options, such as gift cards, are only worth one cent per point. For those who are not using this card for spending with airlines, and redeeming airfare awards, the value of this card is limited.
Who This Card Is For
This is an ideal card for those who purchase airfare for themselves or others. There is no question that eight cents in value per dollar spent is far beyond the benefits that can be received through any other airline affiliated credit card. Cardholders who are trying to maximize their credit card rewards for air travel spending should strongly consider the PenFed Premium Travel Rewards American Express.
