Our experts answer readers' personal loan questions and write unbiased product reviews (here's how we assess personal loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
Who is PenFed 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.
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PenFed Credit Union Personal Loan Details
PenFed Credit Union Personal Loan amounts range from $600 to $50,000. The minimum and maximum amounts are similar what other credit unions offer. For example, Navy Federal Credit Union Personal Loan amount range is $250 to $50,000, and the range for Connexus Credit Union Personal Loan is $2,500 to $25,000. Online lenders usually have higher loan minimums.
PenFed offers term repayment lengths from one year to five years. If you want to pay off your loan early, there are no prepayment penalties. Interest rates at PenFed vary from 7.74% to 17.99% APR.
You don't need to be a member of the credit union 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 savings account with a $5 minimum deposit.
You can get a personal loan from PenFed in all 50 states. You are able to 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.
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PenFed Personal Loan Pros and Cons
How to Apply for a PenFed Personal Loan
1. 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 with no impact on your credit score.
2. Formally send in an application and await approval. When submitting a formal application, you may also have to send in proof of income, like a W-2, tax returns, or other financial documents.
3. Sign 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.
4. 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 Frequently Asked Questions
Yes, PenFed Credit Union is a legitimate credit union 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 isn't hard to get a personal loan from a credit union. While you may have to join the credit union to take out a loan from it — like in the case of PenFed Credit Union — many credit unions have simple requirements to qualify.
Credit unions are a solid choice to get a personal loan — they often have high-quality customer service and smaller loan minimums than online lenders if you just need a little money to tide you over. Credit unions also have their maximum interest rate capped by the National Credit Union Administration at 18%, so you may get a better rate with one than with an online lender.
Your maximum borrowing amount depends on the credit union you chose to borrow from and your particular financial situation. Generally, you'll be eligible for more money with a higher income and credit score. On our list of the best credit unions for personal loans, the maximum amounts range from $25,000 to $50,000.
PenFed Credit Union Trustworthiness
PenFed Credit Union has an A+ rating from the Better Business Bureau, 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 transparent about business practices.
PenFed doesn't have 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.
PenFed Credit Union Competitors
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PenFed Credit Union Personal Loan
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Navy Federal Credit Union Personal Loan
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Connexus Credit Union Personal Loan
PenFed Credit Union Personal Loan vs. Navy Federal Credit Union Personal Loan
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 active military member or a veteran, as well as an employee or retiree of the Department of Defense. Family members of any of the aforementioned groups are also eligible.
PenFed Credit Union Personal Loan vs. Connexus Credit Union Personal Loan
Connexus Credit Union has both the highest minimum loan amount and the lowest maximum loan amount of the three credit unions — its range is between $2,500 to $25,000.
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'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.
You'll get basically the same maximum interest rate with both credit unions, and neither of them charge prepayment penalties.
How we rate personal loans
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- 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's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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