PenFed 2.99% APR BT for life of balance

Not the sweetest thing around, but it is for the life of the balance.

Link

"You'll get a low 2.99% APR for the life of your transferred balances when you transfer them to your Pentagon Federal Credit Union credit card. Transferring your balances is easy: you can transfer your balance securely online right now by logging on below."
...
"Disclosures
A balance transfer fee of 1% (min. $10–max. $100) applies to this transaction."

Not a bad deal if you've got a high CL. Green for you.

In general, Penfed (when you apply) likes to see low balances. They do verify docs after 10k (for those of you who think credit cards are stated income loans) - based on your income, they have a range of debts you are allowed to have (unsecured) - and if you exceed that, you're not getting a card. I believe I read a datapoint somewhere that 7k income was 14.5k in debt. This is not for the AOR holders.

Also, they do not like to see new accounts..

If you get in, however, they will happily extend you huge credit lines - of up to 50k. I have 30k in cards with them, and I reallocated to take part of this deal. Made my 5% off gas card into a 2k card and made a mega 28k card - it is my highest LOC - and I am going to put my 9.5% second mortgage on there. Get it paid off in 5 years at 3% interest - it'll save about 50k.

I agree with the Horseyman. PenFed has rejected me twice in the past despite 750 credit scores. Score is not enough, they want to see an extremely low debt to income ratio. My debt to limits were at 25% but my debt to income is at 60% and they freaked.

jimmyzshack said: yea they called my wife an egyptian about a year ago.
haha nice, I got the "building pyramids" message as well

If you use their card for gas, I guess you'll have to get a 2nd card like Horseymen, or you'll end up paying regular higher interest rates on your gas purchases.

I only have one card with PenFed so I'm not sure it is worth the hassle of applying for a 2nd card to me.

Correct me if I am wrong but credit cards typically want a monthly payment of 2% of the balance?

I have about 18k in a student loan at a fixed 6.5%, monthly payment of $170. I can live with a 2% of balance monthly payment. The math seems to work out better, any advice would be great!

I'm somewhat fresh out of college and very new to finances (including FWF).

lal43 said: ...I'm curious about what type of credit limits people have received for their PENFED credit cards... Obviously it will vary with your income and other factors, but, as a general rule, have people found them to be generous relative to other issuers like Citi, Chase, AMEX?In my A0R of Oct. 2007, I got a $10k line. That's probably the average CL granted on my approved cards in that A0R.

Did you guys get instant approval? Do I have to set up a checking or savings account with them as well?

max210 said: Correct me if I am wrong but credit cards typically want a monthly payment of 2% of the balance?

I have about 18k in a student loan at a fixed 6.5%, monthly payment of $170. I can live with a 2% of balance monthly payment. The math seems to work out better, any advice would be great!

I'm somewhat fresh out of college and very new to finances (including FWF).

I'm not sure who your student loan is with, but if it's with the fed, state, or a specific student loan program you typically get much greater flexability by staying with them.... Many of them will allow you to request a break from payments for 6 months, etc, etc. There are stipulations with all of them, but it's worth looking into what the specifics are with your loan. Depending on your field of work, being fresh out of college may mean you are first on the chopping block in a down economy. Might be worth having that cushion for a few years and sucking up the few extra percentage points. Also, 6.5 seems high for college loans. If you search around you may be able to get down to 5% and still have the benefits of a college loan type program.

not a deal i get like 5 of these a week from my banks. was 4.9 then 3.9 now 2.9; now thats about what alot of high end financiers for auto's get 2.9% right now but to me thats just not a great deal. soon it will be 1.9 or 0.9 then prime - 0.9

keep waiting.

Thanks OP - I knew this would happen sooner or later.

I'm going to pay off my car loan - drop from 7.9% to 2.9% will be great. I thought about doing it when the rate was 5.9% but the difference was fairly small, but I'll save several thousand over the life of the loan now.

I love PenFed.

rigor said: not a deal i get like 5 of these a week from my banks. was 4.9 then 3.9 now 2.9; now thats about what alot of high end financiers for auto's get 2.9% right now but to me thats just not a great deal. soon it will be 1.9 or 0.9 then prime - 0.9

keep waiting.

I would be surprised if you get 5 2.9% BT FOR LIFE deals a week (given that no one else does), but if you do, congrats.

Secondly, you're not assured to get anything lower than 2.9% going forward. BOE held rates unchanged today, so it may be possible that we're near the bottom of the rate dropping for the time being. I'm not saying that rates won't drop further, but I wouldn't count on it explicitly.

susarlas said: How to join ? Can any FW memebers can refer?

No referral needed. How to Join

jatan1986 said: Chase is also offering 2.99% for life - my parents got the offer on couple of their cards with $199 max BT fee and I got one with $75 max fee and another one with $199 max feeChase Sony to be specific - in my experience. $75 max fee.

Anyone have experience with trying to do a reallocation prior to using one of these checks? I'm thinking of pulling out all the stops and paying off some (non-tax deductible) student loans with this.

Just don;t get burned on the NO MAX FEE for transfers. 10 minimum but no MAX listed. I had a friend that got stuck with a 480 dollar fee. Ridiculous.

nilaychampion said: I just got approved for refinance of my New Car Loan at 4.25%. I have credit score greater than 770 . CSR told me that i have been approved for upto $20000 balance trasfer at 2.99%.

As, i am new to all this financial transaction, i have question. When we do balance transfer with penfed do they deposit amount in our checking/saving account? If that's the case can i use that money to payoff my car loan rather than actual car loan from penfed? that way my car loan would be 2.99% rather than 4.25%?

is there any -ve side to this transaction, if this transaction is possible?

Thanks for your help.

Do you mean you have a new car loan with Penfed at 4.25% and want to pay that off with your 2.99% Penfed card BT? If they do let you BT to a checking account and you turn around and pay their auto loan off, I'd be that would raise some flags. Who knows. If it works, let us know, I also have a 4.99% car loan with Penfed...

Horseymen said: In general, Penfed (when you apply) likes to see low balances. They do verify docs after 10k (for those of you who think credit cards are stated income loans) - based on your income, they have a range of debts you are allowed to have (unsecured) - and if you exceed that, you're not getting a card. I believe I read a datapoint somewhere that 7k income was 14.5k in debt. This is not for the AOR holders.

I had a different experience with PenFed. I decided to get a card when I got my CD last Sep since they use the same pull. Had over a $100k in AOR debt and got instantly approved for $40k. Never really use the card so found it strange when I got a call last month telling me they upped my limit to $50k. If chase stops my 5% EDP I would make this card my primary one, They seem like a great CU

I had to verify my 6 figure income when I join through that MOMA offer, I applied for the cash rewards card and a 20k limit with a 755 Equifax score.
I love them all the reps are based in the USA and are very helpful. Their online services take 24hrs to update but so what at least I get to speak to real people when I call and not a software system or someone reading from a script in a far off land, that can't think outside of the box because god forbid if they veer from that script they will get beaten with a stick and go back to their village in shame. LOL! I also love banking with USAA

mrfinagle said: ok help me on this: do you need to be military or affiliated to get this or not? the OP didn't say but the link has eligibility based on military affiliation.

No. How to join See #6.

It's about 14 from request to check. Fidelity does 1 day deposits of Citibank checks.