PenFed Credit Union Personal Loans Reviews

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 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’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 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.

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

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:

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.