How many times have we experienced that the piggy bank is not quite as heavy as we would like it to be, or that our banks are keeping our finances on a tighter leash than a yoga instructor? Maybe you’ve sighed at your credit card bills, secretly wished your leaking roof would mend itself magically or almost screamed at your daily driver to stop demanding more and more cash for repairs? And don’t even get me started on saving up for bigger goals or dreams – you know how they say, “easier said than done.”

PenFed to the rescue? Potentially, yes!

For those days when life’s fish are jumping a little too high and your wallet’s not stretching far, a personal loan might be your lifeline. “And where can I get this magical solution?” you might ask. An option you should definitely put under your financial microscope is the PenFed Credit Union.

Known previously as the Pentagon Federal Credit Union, PenFed has been throwing financial life ropes to people since 1935. It has always been a go-to place for competitive personal loans and a big basket of financial products – you name it, they probably have it: auto loans, student loans, and many more. You’re probably thinking, what makes PenFed so appealing? Well, it has a variety of things up its sleeve – offering financial alternatives from lower rates, zero origination fees, to swift funding. Intrigued yet? Scroll down for more!

Table of Contents

• Best Credit Union for Personal Loans
• PenFed Personal Loans: Pros and Cons
• PenFed Personal Loans: Offerings
• PenFed Personal Loans: Pricing and Terms
• PenFed Personal Loans: Financial Stability
• PenFed Personal Loans: Accessibility
• PenFed Personal Loans: Customer Satisfaction
• PenFed Personal Loans: FAQs
• How we evaluated PenFed’s personal loans

BEST CREDIT UNION FOR PERSONAL LOANS

PenFed is like that homecoming queen that keeps getting crowned year after year and you can’t help but agree – it’s consistently ranked as one of the best personal loan lenders and one of the overall best credit unions.

Before you rush to cash in on the promise of a glittery financial solution, take a moment to consider. Know exactly how much you need to borrow, what you’ll use the money for, and most importantly, how will you return it. It’s like writing a script for a blockbuster movie – success lies in a well-planned plot. If PenFed’s loan options fit nicely into your financial screenplay, voila, you may have found your match!

PROS AND CONS OF PENFED CREDIT UNION PERSONAL LOANS

All good things come with a catch, right? Well, PenFed is no exception. Here’s a glimpse of the roses and the thorns:

Pros

• A buffet of loan types
• Tempting interest rates
• Zero origination fees

Cons

• Must be a member of the credit union

Pros explained

Let’s delve into the things that make PenFed as attractive as a Friday evening after a long week.

Wide selection of loan types

PenFed has quite an assortment of personal loan options. Whether you need to consolidate your debt, renovate the house, fix broken things or pay for unexpected events like your dog eating your stash of bills (that happens, right?), PenFed’s got you covered. Its loans feature uniformed low rates, no originary fees, and you can choose to “borrow anything” from a compact $600 to a hefty $50,000 (terms and conditions apply!). Perfect isn’t it?

Competitive interest rates

As I wrote this in March 2024, the personal loan Annual Percentage Rates (APRs) of PenFed credit union are a call for celebration, ranging from 7.99% to 17.99%. You see what you get. Period. Even if you dutifully wore your invisible cloak when making some financial choices and your credit rating isn’t exactly glistening, PenFed’s highest APR is still friendlier than what many other lenders on the financial market will offer you, and way better than credit card rates. No joke!

No origination or prepayment fees

While the origination fee is foregone by most financial institutions (trust me, it’s scary how many times that thing sneaks into the fine print!), PenFed remains a beckon of hope. It promises no origination fees, prepayment penalties or any hidden bully in the closet. That, my friend, is what sets PenFed apart when affordability dances onto the stage.

Cons explained

Membership is a must

There might be a tiny hiccup – PenFed requires you to be a member to get your loan. So, before you start dreaming about making it rain with your loan amount, think about if you’d like to join a credit union. The good news is, singing up as a member isn’t rocket science, all you need is to open a savings account and deposit at least 5 bucks. Did I mention how PenFed’s membership rules are more flexible than a contortionist at the circus? Getting started is a breeze!

OFFERINGS OF PENFED PERSONAL LOANS

Now that we’ve dissected the pros and cons of PenFed loans, let’s have a peek at exactly what’s up for grabs with their personal loans:

• Debt Consolidation: You’ve got one credit card to pay off another, and another and another. Sounds like a never-ending debt juggling circus, right? Well, PenFed’s debt consolidation loan might just be the key to simplifying your payments and help you pay off your debts more rapidly.
• Home Improvement: Is your home screaming for attention? Desperate for a makeover? Or maybe the roof descended on your couch during the last storm? PenFed’s home improvement loans could be your saving grace, making it possible to get your house back to its best self or make that transformation you’ve been planning.
• Transportation: Is your car acting up? Again?! PenFed understands that car repairs can be as urgent as they are expensive. So, instead of getting trapped in the perpetual loop of credit card debt, consider lending from PenFed to get your loyal four wheels back on the road.
• Major Life Events: Unfortunately, life doesn’t come cheap these days. But, big, unforeseen expenses (I’m looking at you, tax bills!) or even planning for life’s exciting milestones (like weddings or vacations) need not be a hassle with PenFed Personal Loans. Plus, you can borrow up to $50,000 to help plan or smooth over life’s little bumps. Heck, you could even invest in some seriously fancy pet care!

PRICING AND TERMS OF PENFED PERSONAL LOANS

Let’s get down and dirty with money matters. As I’ve mentioned before, PenFed offers competitive APRs with rates ranging from 7.99% to 17.99% (Don’t stare, it’s as attractive as money matters get!). Your exact rate won’t demand an autopay enrollment – it’s calculated based on factors such as your income and credit profile. Basically, the better your credit health, the better terms you can score. Late payments, however (more than five days), get slapped with a $29 fee, so be sure to keep your repayments punctual.

Financial Stability of PenFed

Something worth considering is that PenFed has been around since 1935. This isn’t their first rodeo. That being said, Weiss Ratings marked PenFed with a C grade, a step down from its previous B+ grade due to comparatively weaker liquidity and profitability. However, this is not really a reason for borrowers to lose sleep, it’s more for those with deposit accounts. But hey, PenFed is federally insured by the National Credit Union Administration, so you’re covered in the unlikely event of a failure.

PenFed Personal Loans: Accessibility

Accessibility is crucial in the financial world. You really don’t want to be stuck on hold or get caught up in a never-ending email thread. Thankfully, PenFed generally offers solid customer service to all its members (we did say words of appreciation are scattered all over the internet!). Beware though, while their customer support is available every day, their schedule comes with certain operational hours (detailed below).

Availability

• Monday – Friday: 7 a.m. – 11 p.m. (EST)
• Saturday: 8 a.m. – 11 p.m. (EST)
• Sunday: 9 a.m. – 5:30 p.m. (EST)

You’re ever welcome to ask your questions or apply for loans online any time, and their online help center is always open for quick, self-service support.

Customer Satisfaction of PenFed Personal Loans

Sure, there are a few complaints here and there about delay in customer services, but let’s face it – customer service rants are internet’s favorite pastime! Overall, customer reviews on BBB and major platforms sway favorably towards PenFed. The features most often lauded are PenFed’s competitive rates and no-hassles application and approval experience.

PenFed Personal Loans: FAQs

Still got some burning queries?

• Is PenFed good for personal loans? Why yes, if PenFed was a student, it would be sitting front and center, acing all tests and making others a bit jelly with envious glances at its low rates and flexible terms. You can borrow up to $50,000, and you won’t get buried under piles of paperwork either.
• What are the PenFed personal loan credit score requirements? Interesting question. PenFed likes to keep it hush-hush – it hasn’t stated a bare minimum. But a FICO score of 670 or more would definitely sweeten the deal.
• Does PenFed perform a hard credit check? Well, not immediately. PenFed initially does a bit of soft snooping – checking your rate which doesn’t impact your credit score. It’s only when you decide to go ahead with a pre-approved offer that PenFed rolls up its sleeves and does a thorough credit investigation.
• What credit score does PenFed use for personal loans? To decide your worthiness as a borrower, PenFed relies on your FICO Score, created by the Fair Isaac Corporation. So, check your score before you get in line – just as you’d cross-check your measurements before ordering a dress online.

HOW WE EVALUATED PENFED PERSONAL LOANS

We evaluated PenFed’s offerings, putting our detective glasses on, examining each factor – the pros, cons, available loan types, user experience, financial strength, and user reviews from the Better Business Bureau and other renowned review platforms.

Looking at borrowing from a credit union? Want to avoid the sky-high interest rates of certain lenders? PenFed could just be what you’re searching for. You can hop over to their website and check your personalized rate without negatively impacting your credit score. So go ahead, give it a whirl!