Personal finance experts at Business Insider compared PenFed Credit Union Personal Loan to the best personal loans and found it to be an industry leader with low minimum interest rates on its loans.
The right loan for you depends on your credit history and credit score, which will determine the lowest rate you can qualify for.
PenFed Personal Loan Overview
PenFed Credit Union Personal Loan amounts range from $600 to $50,000. The minimum and maximum amounts are similar to what other credit unions offer. For example, the Navy Federal Credit Union Personal Loan amount range is $250 to $50,000, and the Connexus Credit Union Personal Loan range is $1,000 to $50,000. Online lenders usually have higher loan minimums.
You don't need to be a credit union member to apply for a personal loan, but you'll have to be a member to get your loan. If you've served in the military or work at qualifying associations or organizations, you'll qualify. If that doesn't apply, you can easily join by opening a PenFed savings account with a $5 minimum deposit.
You can get a personal loan from PenFed in all 50 states. You can also apply with a co-borrower, which might help you get a lower rate if your co-borrower has a good credit score. You can complete the application online and get your rate within several minutes.
You may get your money as early as the next day, though it could take up to seven business days if you're getting the money by check.
PenFed Personal Loan Rates and Terms
PenFed offers term repayment lengths from one year to five years. Interest rates at PenFed vary from 8.99% to 17.99%.
If you want to pay off your loan early, there are no prepayment penalties. PenFed does charge a late fee of $29 if your payment is five days past due.
PenFed Personal Loan Pros and Cons
Benefits
- Wide range of loan amounts and terms. You can take out as little as $600 or as much as $50,000, with term lengths ranging from 12 months to 60 months.
- Low minimum APR. PenFed's minimum APR is lower than many competing credit unions' rates.
- No origination fees or prepayment penalties. You might have to pay these fees with other lenders.
- You can apply with a co-borrower. A co-borrower can help you get a lower rate on your loan if they have a good credit score.
Drawbacks
- You have to be a member to get your loan. Members of the military and employees of qualifying organizations will be eligible, but if you don't qualify, you can join by opening a savings account with a $5 minimum deposit.
- Late fee. The credit union charges a $29 late fee.
Who is a PenFed Personal Loan Best For?
PenFed is best for borrowers who want to take out an unsecured loan from a credit union with low minimum APRs and a wide range of loan amounts. However, borrowers worried about falling behind on their payments might want to avoid PenFed — the credit union charges a $29 late fee.
How to Apply for a PenFed Personal Loan
- Fill out personal information on PenFed's website. You'll enter your name, Social Security number, and income history. You'll get an estimated monthly payment and APR range without impacting your credit score.
- Formally send in an application and await approval. When submitting a formal application, you may also have to send proof of income, like a W-2, tax returns, or other financial documents.
- Sign a loan agreement and get your money. After you sign your loan agreement, you may get your money quickly with PenFed — though it doesn't guarantee the cash the same day.
- Make a plan to repay your loan. Work your monthly payments into your budget, and make sure you have enough money to cover all of your financial responsibilities.
PenFed Personal Loan Alternatives
PenFed Personal Loans vs. Navy Federal Credit Union Personal Loans
You can get a loan of as little as $250 with Navy Federal Credit Union or $600 with PenFed Credit Union. Both credit unions allow you to take out up to $50,000.
It's harder to qualify for a membership with Navy Federal than PenFed, as you're only eligible if you are an active military member or a veteran, as well as an employee or retiree of the Department of Defense. Family members of any of the groups mentioned above are also eligible.
Read our Navy Federal Credit Union personal loans review.
PenFed Personal Loans vs. Connexus Credit Union Personal Loans
Connexus Credit Union offers personal loan amounts between $1,000 to $50,000. Term lengths from Comnexus range from 24 months to 84 months.
You're eligible to be a member of Connexus if you're affiliated with certain designated groups or live in specific parts of Wisconsin, Minnesota, and Ohio. Otherwise, you can join the Connexus Association with a one-time $5 donation. Similarly, you can join PenFed if you've served in the military or worked at qualifying associations or organizations. You can also join by opening a savings account with a $5 minimum deposit.
You'll get basically the same maximum interest rate with both credit unions, and neither charges prepayment penalties.
Read our Connexus Credit Union personal loans review.
Consider checking for prequalified loan offers from multiple lenders in a loan marketplace to make sure you find the best rate available.
8.99% to 17.99%
$600 to $50,000
580
- Wide range of loan amounts
- Low minimum APR
- No origination fees or prepayment penalties
- Coborrowers allowed
- Need to be a member to get a loan
- Late fee
For borrowers with excellent credit, PenFed Credit Union has great minimum interest rates on its personal loans. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
- Loan amounts range from $600 to $50,000
- Term lengths between one to five years
- Loans originated by Pentagon Federal Credit Union
PenFed Credit Union Customer Experience
PenFed prioritizes convenience with an online rate-checking tool and a web-based loan application. Customers generally say the process goes as smoothly as intended.
PenFed gets an average of 4.1 stars from Trustpilot reviewers, putting it in the "Great" category. Customers report being especially pleased with the easy application process and the user-friendly online banking system.
Is PenFed Credit Union trustworthy?
PenFed Credit Union has an A+ rating from the Better Business Bureau (BBB), a non-profit organization focused on consumer protection and trust. The BBB determines its score by evaluating a company's response to customer complaints, truthfulness in advertising, and transparency about business practices.
PenFed hasn't had any recent public controversies.
Between its top-notch BBB score and clean history, you might decide you're comfortable taking out a personal loan with PenFed.
Why You Should Trust Us: How We Rated PenFed Personal Loans
We rate all personal loan products in our reviews and guides on a scale from 1-5. The rating awarded is a weighted average of seven categories that explains how this personal loan lender compares to competing lenders. The categories include:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category is given a weighting based on its impact on the borrower's experience. Categories that are weighted the most heavily include fees and interest rates.
See more on how we rate personal loans »
PenFed Personal Loan Frequently Asked Questions
Yes, PenFed Credit Union is a legitimate credit union that is federally insured by the National Credit Union Administration. It has a high rating in trustworthiness from the Better Business Bureau and offers a variety of financial products outside of loans.
Provided your credit is in good shape, it shouldn't be hard to get a personal loan from PenFed. You'll have to join PenFed if you are not already a member. But becoming a member is easy. And like most other credit unions, PenFed has simpler requirements to qualify for a loan than many other types of lenders.
PenFed will lend you as much as $50,000 if you qualify. That's among the highest personal loan amounts available among our top picks for the best credit unions for personal loans.
PenFed doesn't publish a minimum credit score to qualify for a personal loan. Still, it does state in its Learning Center that, generally, borrowers need a credit score of 580 or higher to get their personal loan applications approved.
You can get approved for a PenFed personal loan immediately after applying, but this isn't guaranteed for all applicants. After approval, you can receive your funds through direct deposit or ACH transfer within 1-2 business days. If you request a check, the timeframe extends to 5-7 business days.
PenFed has no specific eligibility requirements, so if you're an adult living in the United States, you are likely eligible. You can apply for a PenFed personal loan even if you're not a member, and they'll create your membership as part of the application process.
