PenFed Credit Union Personal Loans

PenFed Credit Union Personal Loans Reviews

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About PenFed Credit Union Personal Loans

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Pentagon Federal Credit Union (PenFed) is a financial cooperative that was formed by 10 people in 1935. Since then, it has grown to serve over 2.9 million members from across the entire nation. As a PenFed member, you have access to financial products and services such as personal banking, credit cards, mortgages and personal loans.

    Pros & Cons

    Pros
    • No origination fee or prepayment penalty
    • Low APR range
    • Available to all U.S. residents
    Cons
    • Charges late fees
    • Only one personal loan option

    Our editor’s take

    If you’re already a PenFed Credit Union member or are willing to become one, getting a personal loan from it is a great option. PenFed loans come with low rates and minimal fees, so members can save money with its financing instead of going through more traditional banks.

    Since PenFed offers membership to anyone in the U.S., it’s likely that you’ll be eligible for a PenFed membership. However, if a PenFed personal loan doesn’t fit your financing needs (for example, if you need access to more than $50,000 or want a repayment term longer than five years), you should seek out another lender.

    PenFed Credit Union personal loan products

    PenFed Credit Union only offers one personal loan option, an unsecured personal loan for up to $50,000. These loans come with repayment terms as long as 60 months and customizable payment schedules (monthly or biweekly).

    PenFed Credit Union personal loan rates

    PenFed’s personal loan rates range from 7.99% to 17.99% annual percentage rate (APR) as of publishing. Your APR will vary based on your creditworthiness and loan details.

    PenFed Credit Union personal loan fees

    PenFed Credit Union doesn’t charge origination fees or prepayment penalties. However, it does charge a $29 late fee should you be more than five days late making a payment.

    How to apply for a PenFed Credit Union personal loan

    PenFed allows you to apply for a personal loan as a nonmember as long as you become a member once approved. Luckily, anyone can be a PenFed member by making an initial deposit of $5 and filling out a brief application.

    Whether you have received a loan offer in the mail or not, applying for a personal loan through PenFed is simple. To do so, you’ll need to follow these steps:

    1. Gather documentation. To make the application process easier, you should prepare your reason for taking out a loan, proof of employment, proof of income and proof of identity.
    2. Check your rate or redeem your offer. By selecting the “Check Your Rate” button on PenFed’s personal loan landing page, you can find out what rate you should expect. Alternatively, if you’ve received a loan offer in the mail, you can redeem your offer by selecting the “Redeem Your Offer” button and entering the last four digits of your Social Security number or ITIN.
    3. Complete the application. PenFed will walk you through the application process and prompt you to enter any information it needs from you. You should be prepared to provide the documentation you gathered in the first step, as well as personal and financial information.

    Once you complete your application, you can expect to hear from PenFed with a loan decision by email or phone. Once approved, you can get your loan funds in one of three ways:

    1. Mailed by check
    2. Deposited in a PenFed checking or savings account
    3. Transferred via ACH to an account at a different financial institution

    How do PenFed Credit Union personal loans compare?

    When compared to Upgrade personal loans, PenFed Credit Union’s low APR range gives it a major edge. Otherwise, these loans are fairly similar to each other, with Upgrade offering slightly longer repayment terms.

    Here is how PenFed and Upgrade compare side by side:

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    PenFed Credit Union personal loans FAQs

    What is PenFed Credit Union?

    America’s second-largest federal credit union, PenFed offers a variety of financial services and products to its over 2.9 million member-owners. These include checking accounts, mortgages, auto loans, student loans and personal loans.

    Does PenFed allow co-borrowers on personal loans?

    Yes, PenFed allows you to apply with a co-borrower.

    How quickly are PenFed personal loans funded?

    PenFed personal loans can be funded as quickly as the next day. That said, funding times can vary based on how you’ve selected to receive your loan. For direct deposits, you can expect a one- or two-business-day wait, depending on the time of day your loan is processed. If you choose to have your loan funds mailed to you, you will receive a check in five to seven days.

    Is PenFed Credit Union legit?

    PenFed Credit Union is a trusted financial institution that is federally insured by the National Credit Union Administration (NCUA). As one of the largest credit unions in the nation, PenFed says it has helped finance over 6,385 homes and get $33.7 million in cash back for its close to three million members.

    PenFed Credit Union Personal Loans Reviews

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      How do I know I can trust these reviews about Pentagon Federal Credit Union?
      • 4,476,910 reviews on ConsumerAffairs are verified.
      • We require contact information to ensure our reviewers are real.
      • We use intelligent software that helps us maintain the integrity of reviews.
      • Our moderators read all reviews to verify quality and helpfulness.
      Page 1 Reviews 0 - 10
      Customer ServiceLoan ProcessRatesTransparency

      Reviewed Jan. 31, 2024

      After 40yrs with PenFed, they chose to charge off the remainder of a very small personal loan. While I was continuing to make payments, without notifying me of their decision, and with funds in my accounts to satisfy the loan. When asked, the collections department consistently failed to review or explain the action. I put up with some less than customer service and abhorrent banking app for the rates, primarily. I'm done, they lost me.

      Customer ServiceStaffLoan ProcessRates

      Reviewed Jan. 8, 2024

      I paid off the total balance of my personal loan in November 2022. Today on January 8th 2024 I received an email saying that my next payment is due on January 17th, 2024. I called Penfed and explain that my loan has been paid off 14 months ago and she said: "Well I'm sorry but unfortunately we didn't receive a request of a pay off letter form and we accumulated interest during all this time. If you want to close out you must pay off the balance of 163.00." I asked her why Penfed team did not contact me during all this time and she said: "Because you paid off your loan earlier". I said: "You just said it. I paid it off."

      Long story short, she was speaking to me with a lot of attitude. When I said: "Alright, I will pay it off but you're losing me as a client because I have never had this service before." Immediately she respond: "Great". I will never recommend Penfed. Also, watch your accounts. My sister was missing 1,000 and after 1hr over the phone with them, they realized it was a mistake of the bank. If she was not on top of it, they would have keep it!

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        StaffLoan Process

        Reviewed Nov. 17, 2023

        One of the worst companies I have dealt with in over 11 years of being a residential real estate agent. They will put your purchase in jeopardy by not meeting deadlines, not properly advising buyers and worse yet, the actual loan officers are absentee through the process - Don't walk, run the other direction from these grossly incompetent people.

        Customer ServicePunctuality & SpeedLoan Process

        Reviewed Nov. 12, 2023

        We applied for lease buyout on our 2020 MDX. Both have 800+ FICO. Never late on any accounts. 4th Acura since 2012. The process started mid Oct and we were just approved 11/9 after over 50 email request to prove identity and 2 hard inquiries within 30 days on our credit. This institution is horrendous. Our vehicle is also worth $10k more than we were asking for. Save yourself some time and go to another lending institution.

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        PenFed Credit Union Personal Loans Company Information

        Company Name:
        Pentagon Federal Credit Union
        Website:
        www.penfed.org