PenFed Credit Union personal loans review
- Max. Loan Amount
- $50,000
- APR
- 7.99% to 17.99%
- Min. credit score
- 580
Our verdict
Get a discounted rate from this not-for-profit lender.
PenFed is ideal for active-duty service members and veterans — but membership isn't limited to current and former military members. Because it offers loans as low as$600, PenFed is a good choice for anyone looking to borrow a small amount and avoid the high interest rates that come with short-term loans.
But you'll want to look elsewhere if you're in a hurry — it can take one to two weeks to receive your funds after approval, depending on whether you can get an electronic deposit or need to wait for a paper check. You may also want to look elsewhere if you need a loan on the larger side.
Best for: Borrowers looking for a low loan amount with a competitive interest rate.
Pros
-
Maximum APR of 17.99%
-
Fair credit OK
-
Loans start at a low $600
Cons
-
May take up to two weeks to fund loan
-
Funding may only be available by check
Details
Product details
| Min. Loan Amount | $600 |
| Loan Amount | $50,000 |
| APR | 7.99% to 17.99% |
| Interest Rate Type | Fixed |
| Min. credit score | 580 |
| Late Fee | $29 |
| Loan term | 1 to 5 years |
| Turnaround Time | 1 to 2 business days |
What makes PenFed personal loans shine?
Credit unions are typically not-for-profit institutions, which allows them to offer lower APRs on their loan products. And that’s true for PenFed, which has a maximum APR of just under 18% — much less than the max rates its competitors offer, which are typically 24% or higher. You can get a smaller loan amount than many other lenders offer. And borrowers with fair credit should still apply, as PenFed doesn’t only use FICO scores to determine eligibility.
Where PenFed personal loans fall short
The biggest drawback in working with PenFed is how its loans are funded. If you live in a state where PenFed is allowed to direct deposit your loan funds into your bank account, it may only take one or two business days to fund the loan. But in some states, PenFed is required to send you a check for the loan, which can take one to two weeks to get to you, plus the time it can take for your bank to process the check.
How to qualify for PenFed personal loans
To apply for a personal loan from PenFed, you need to meet these basic criteria:
- PenFed membership
- Good to excellent credit
- US citizen or permanent resident
- At least 18 years old
Am I eligible to be a PenFed member?
Eligibility used to be limited to military families and members of certain organizations, but that is no longer the case. To be a member of PenFed Credit Union, you only need to open an account with a $5 deposit.
How to apply
PenFed allows you to apply online, in person, or on the phone, without a hard credit check. You’ll receive multiple loan offers, either online or through the mail. Once you choose an offer, you can claim it on PenFed’s website. But once you claim an offer, PenFed runs a full credit check as part of the underwriting process.
- Apply from the website.
- Consider loan offers. You can get offers without a membership, but no offer can be accepted without a PenFed membership, which includes opening an account.
- Accept loan terms and establish your membership, if necessary.
- Follow repayment plan.
How PenFed personal loans compare to other lenders
Bankrate
★★★★★
Finder rating 4.3 / 5
APR
4.60% to 35.99%
Loan term
Up to 12 years
Loan amount
$1,000 to $100,000
Min. credit score
Poor to excellent credit
Best Egg personal loans
★★★★★
Finder rating 3.8 / 5
APR
8.99% to 35.99%
Loan term
3 to 5 years
Loan amount
$2,000 to $50,000
Min. credit score
640
LightStream personal loans
★★★★★
Finder rating 4.8 / 5
APR
7.49% to 25.49%
Loan term
24 to 144 months
Loan amount
$5,000 to $100,000
Min. credit score
Good to excellent credit
PenFed Credit Union reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1.19 out of 5 stars, based on 232 customer reviews |
| Trustpilot Score | 4.4 out of 5 stars, based on 1,451 customer reviews |
| Customer reviews verified as of | 26 October 2023 |
Many of the most recent reviews on PenFed’s BBB page are negative. Customers complain of slow customer support, frequent technical difficulties and an overall less-than-optimal experience. But these reviews are of PenFed Credit Union as a whole, not about their personal loans specifically. Most complaints seem geared toward issues with the PenFed credit card and car loans. But customer service issues affect every product the credit union offers.
Is PenFed Credit Union legit?
Yes, PenFed is a legit credit union and insured by the National Credit Union Administration (NCUA). Its website is encrypted to keep your information safe, and its privacy policy covers what personal information is collected and how it is used.
Frequently asked questions
Will a late payment on my loan be reported to a credit agency?
Yes, but you have a 30-day grace period before this happens. A good way to keep your credit in good standing and avoid late fees is to work the cost of the loan into your budget.
Where does PenFed have branches?
PenFed Credit Union has branches in Washington, DC and 13 states:
- California
- Georgia
- Florida
- Hawaii
- Maryland
- Nebraska
- New Jersey
- New York
- New Mexico
- North Carolina
- Pennsylvania
- Texas
- Virginia
How can I contact PenFed customer service?
Customer service hours are 7 a.m. to 11 p.m. ET on Monday through Friday, 8 a.m. to 11 p.m. ET on Saturday, and 9 a.m. to 5:30 p.m. ET on Sunday. And you can use the following ways to contact a representative:
- Phone number: 800-247-5626
- Email: info@hq.penfed.org
- Twitter: @PenFed
- Facebook: https://www.facebook.com/PenFed/
Your reviews
Heather Finder
Staff writer
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