Even though you’ve probably seen hundreds of commercials for Discover, Citibank, Chase, Capital One, Bank of America and American Express, the best credit card issuer continues to be Pentagon Federal Credit Union, and their line of three — only three — credit cards. PenFed is a credit union designed to focus on members of the military, but anyone can apply and be approved. The only requirement is that you be a member of the credit union, which can be obtained in a variety of ways, explained below.

Here is a quick review of each of the three credit cards currently offered by PenFed.

PenFed Platinum Cashback Rewards Card. This credit card is one of the kings of the cash back credit card world, offering 5% cash back on gasoline purchases paid at the pump, fuel purchases for airplanes and boats receive 1% cash back, and 1% cash back on all other purchases. This 5% cash back on gasoline purchases is the largest reward offered today for this spending category, and with no maximum or cap on the amount of rewards you can earn, this card easily finds its way into thousands of consumers’ wallets. The PenFed Platinum Cashback Rewards Card charges no annual fee, which is rare these days considering the sweeping credit card reform. The card’s credit line is up to $50,000, but the level of credit an applicant qualifies for depends on his or her credit history.

PenFed Premium Travel Rewards American Express® Card. A top-notch travel rewards credit card, the PenFed Premium Travel Rewards American Express® Card offers 20,000 bonus points after spending $650 within the first three months of card ownership. That’s equivalent to a $200 cash bonus. All cardholders receive five points for every dollar when booking airfare and one point for every dollar spent on all other purchases. Like all other PenFed credit cards, the PenFed Premium Travel Rewards American Express® Card carries no annual fee.

PenFed Promise VISA Card. For those not interested in rewards and more concerned about finding a low interest rate, the PenFed Promise VISA Card carries one of the lowest interest rates available today. First, the card offers an introductory purchase rate of 7.49% APR for 36 months. Following this introductory period, the purchase APR changes to 9.99% variable, which is still low compared to other credit cards on the market today. Without a rewards program, the PenFed Promise VISA Card offers other perks. This card is 100% fee-free, so there is no cash advance APR fee, no foreign transaction fee, no balance transfer fee, no annual fee, no late fees and no over-limit fees.

PenFed is a credit union, and in order to be approved for this card, you must be a member of the Pentagon Federal Credit Union. Becoming a member is simple, and can be accomplished by meeting one of the following criteria:

• Members of the United States Military or Uniformed Services
• Employed by the US government
• Members of an eligible military association
• Family members of someone in the United States military
• Employees or volunteers of the American Red Cross
• Employees of a qualifying organization
• Residents of a military base
• One-time donation of $15 to Voices for America’s Troops
• One-time donation of $20 to the National Military Family Association

Although the Pentagon Federal Credit Union is designed for military members and employees of the U.S. government, it’s quite simple for anyone to join. The one-time donations are likely the easiest gateway for most people who aren’t eligible through the other requirements.

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Gas prices are on their way back up again. When the economy tumbled in the past few years, gas prices dropped from their highs, but they are now increasing fairly steadily. It’s hard to imagine where the price of gas will be just one year from now, but it makes sense to continue preparing for higher gas prices for an extended period of time.

Gas credit cards are an excellent way to reduce the effect of spending for gasoline each and every week. Depending on your situation, there may be a few options that suit your gas purchasing needs and after careful review, one gas rebate credit card stands out amongst the rest.

Editor’s choice

Chase Freedom® Visa – $200 Bonus Cash Back. The Chase Freedom® Visa – $200 Bonus Cash Back is one of four credit cards on this list that offers a 5% cash back opportunity on gas purchases as well as a $200 statement credit after making $500 in purchases during the first three months. With rotating 5% cash back categories throughout the year, gas purchases, for example, can receive 5% cash back for three to six months of the year, subject to a maximum and quarterly enrollment. During the other remaining months of the year, gasoline purchases will receive a standard 1% cash back. The Chase Freedom® Visa – $200 Bonus Cash Back card does not carry an annual fee and good credit is required to obtain this card.

Discover® Open Road Card. The Discover Open Road Card offers 2% cash back on all gas and restaurant purchases, up to $250 per billing period. This means that if you spend $300 on gas and restaurants during a billing cycle, only $250 will qualify for the 2% cash back, and the other $50 is considered a regular purchase, for which you get 1% cash back. (For the 1% cash back, you have to spend $3,000 for that year; until then, you earn 0.25% cash back.) The Discover Open Road Card does not carry an annual fee and comes with a 0% introductory APR of 15 months for both balance transfers and purchases.

True Earnings® Card from Costco and American Express. The True Earnings® Card from Costco and American Express is the only credit card on the market today that offers a flat 3% cash back on all gasoline purchases up to $3,000 in purchases per year (1% thereafter). There are no minimum amounts to spend before you can take advantage of this cash back offer. If you are a member of the Costco Warehouse Club, the card does not have an annual fee.

The True Earnings® Card from Costco and American Express also offers 2% cash back on travel and restaurant purchases and 1% cash back on everything else, including purchases made at Costco. With a 0% introductory APR on purchases for six months, the True Earnings® Card from Costco and American Express is, without a doubt, the best gas credit card.

PenFed VISA Platinum Cashback Rewards Card. The only reason the PenFed VISA Platinum Cashback Rewards Card isn’t at the top of our list is because of a small membership hurdle. The card offers 5% cash back on gasoline purchases paid at the pump, however boats and airplanes earn 1% cash back. Cardholders will also earn 1% cash back on everything else. The catch is that you have to be a member of the Pentagon Federal Credit Union. That means you must be a United States Government employee, member of the United States Military and Uniformed Services, employee or volunteer of the American Red Cross, member of the National Military Family Association, or a family member/housemate of a current PenFed member. You can become a member by making a small donation, so the one restriction holding you back is only a $20 donation away!

Blue Cash Everyday from American Express. If you spend a lot of money each year on your credit card, the Blue Cash Everyday from American Express is a good option. Cardholders are entitled to earn 3% cash back at supermarkets, 2% cash back on gas and department store purchases and 1% cash back all other eligible purchases, as well as $100 cash back bonus after spending $1,000 in the first 3 months of card ownership. There is no limit to the amount of cash back earned and cash never expires, so long as you maintain a good credit history. There is an introductory 0% APR offer on purchases for 12 months. The Blue Cash Everyday from American Express does not have an annual fee, something rare for an American Express Card.

Capital One® No Hassle Cash Rewards. The Capital One® No Hassle Cash Rewards is a straightforward cash back card that earns 2% cash back on gas and at major grocery stores and 1% cash back on everything else. The card comes with a 0% introductory APR offer on purchases until September 2012, and there is no limit to the amount of cash that can be earned. There is an annual fee of $39 on the Capital One® No Hassle Cash Rewards Card. Because it is a Capital One card, any purchases you make internationally will not be charged a foreign exchange fee. Only average credit is needed to obtain this card.

Citi® Dividend Platinum Select® Visa® Card. Similar to the Chase Freedom® Visa, the Citi® Dividend Platinum Select® Visa® Card also has a 5% cash back opportunity with $100 cash back earned after spending $500 during the first three months. Rotating categories each quarter allow cardholders to earn 5% cash back on qualifying purchases and 1% cash back on everything else, up to $300 a year. This card now offers a 0% introductory APR on purchases for 12 months and an introductory APR of 0% on balance transfers for 12 months. The card does not charge an annual fee, and customers can earn an additional 5% cash back through the Citi Bonus Cash Center®.

Discover® More® Card. Wrapping up our gas credit cards that offer 5% cash back for three months a year, the Discover® More® Card follows the suit of the Chase Freedom® Visa and Citi® Dividend Platinum Select® MasterCard®. Cardholders can earn 5% cash back on rotating categories throughout the year, meaning gas purchases qualify for at least three months out of the year. The 5% cash back bonus program has a maximum and requires you to enroll each quarter to be eligible. After you make $3,000 in annual purchases, all other transactions will earn 1% cash back (otherwise 0.25% cash back). The Discover® More® Card offers an introductory APR of 0% on balance transfers for 15 months and on purchases for 15 months, and does not carry an annual fee.

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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