Discover it® Cash Back Card
vs. PenFed Power Cash Rewards Visa Signature® Card

Both the Discover it® Cash Back Card and the PenFed Power Cash Rewards Visa Signature® Card offer rewards without an annual fee. The Discover it Cash Back edges ahead with its 0% introductory APR on purchases and balance transfers, making it appealing for those with existing balances or upcoming expenses.

However, the PenFed Power Cash Rewards card offers a welcome bonus that can quickly put cash back in your pocket. This card's potential for high cash back rewards makes it a strong contender for those eligible for credit union membership.

You might prefer the Discover it Cash Back if you enjoy maximizing cash back by keeping up with rotating categories and can take advantage of the card's 0% introductory APR on purchases and balance transfers. This card is especially rewarding in the first year with its cash back match offer, making it a strong contender for those who plan their spending around bonus categories.

You might prefer the PenFed Power Cash Rewards if you value a straightforward rewards program with a consistent cash back rate on all purchases. If you're a PenFed Honors Advantage member, you'll benefit from the higher 2% cash back. Additionally, the welcome bonus and the 0% balance transfer APR offer for 12 months add value for new cardholders who meet the credit union's membership criteria.

Evaluating APRs, fees, credit requirements, rewards, and other features will clarify each card's strengths. For instance, if you prefer predictable rewards, the PenFed Power Cash Rewards may appeal to you, whereas the Discover it Cash Back could be advantageous for maximizing rotating category bonuses.

The Discover it Cash Back card stands out with its 5% cash back on rotating categories, up to a quarterly maximum, upon activation. This can be lucrative for those who align their spending with these categories. However, some management is required to activate the categories each quarter. The rotating categories can include expenses such as gas stations, grocery stores and restaurants. You should stay informed about the current and upcoming categories to fully benefit from the 5% cash back offer.

The PenFed Power Cash Rewards card offers a steady 1.5% cash back on all purchases, or 2% for PenFed Honors Advantage Members, without the need to track rotating categories. This makes it a solid choice for those seeking a straightforward rewards program without the fuss.

The following table provides a visual comparison of the bonus categories for each card.

The Discover it Cash Back offers a flexible redemption process. You can redeem your cash back for gift cards, statement credits or direct deposits. There is no minimum redemption threshold. Additionally, rewards on this card do not expire; even if you don't use the card for a period, you can still claim the rewards within 18 months of account inactivity.

The PenFed Power Cash Rewards also has various redemption options. You can get your rewards as a statement credit to your credit card account. You may also deposit rewards into your PenFed Checking or Share account or transfer them to another financial institution. There is no expiration for rewards, which is favorable if you prefer accumulating your cash back over time.

MoneyGeek evaluates credit cards like the Discover it Cash Back and PenFed Power Cash Rewards using a tailored scoring system for different use cases. For instance, we assess the Discover it Cash Back on its balance transfer features and gauge the PenFed Power Cash Rewards on its cash back benefits.

The most influential factors in these evaluations include the introductory APR offers, the regular APR for balance transfers and the effective reward rate for cash back. For a deeper understanding of our process, you can review our ranking methodology.