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PenFed In-Depth Review
In a nutshell: PenFed offers personal loans that can be easily customized to fit most borrowers’ needs.
PenFed In-Depth Review
In a nutshell: PenFed offers personal loans that can be easily customized to fit most borrowers’ needs.
PenFed In-Depth Review

Overview

If you’re in need of cash, you can skip the lengthy application process with PenFed Credit Union. PenFed personal loans offer up to $20,000 to eligible applicants through an easy online application. The lender doesn’t charge any origination or application fees, and APR starts at 7.74%. Once you qualify, you can expect to receive your money in as fast as one business day.

Considering taking out a loan? Find out all you need to know before you apply. This PenFed review will walk you through the process so you know what to expect.

PenFed Personal Loans At-A-Glance

  • Loan Type: Personal Loans & Line of Credit
  • Loan Amount: Up to $50,000
  • APR: 4.60% to 35.99%
  • Repayment: 12 to 60 months

Requirements

PenFed Membership Eligibility Requirements:

  • Must be able to fund a savings account with at least $5
  • Must be a U.S. citizen or permanent U.S. resident
  • Must have a government-issued photo I.D
  • Must be at least 18 years old

You can use the money for basically any personal reason, excluding buying a home (you’ll want to apply for a mortgage loan in that case, also available at PenFed). Typically, borrowers use their personal loans for things like car expenses, home improvement, medical and dental bills, or big events (like a wedding).

You can also use your loan toward debt consolidation by paying off multiple debts to simplify your repayments. Debt consolidation offers an alternative financing option, best-suited for anyone with high-interest credit card debt. You can pay off credit cards and combine your debt into a single, low-interest personal loan.

Although PenFed is a credit union, they do not require prospective borrowers to be a member in order to apply. However, you will need to join if you decide to proceed with accepting the loan.

Loan Process

PenFed takes the hassle out of the lending process. Before you begin, you can get an estimate of your loan with the free, instant online calculator. Input your intended loan amount and loan length to find out what to expect on monthly repayments.

To move forward with your application, you’ll go through a 3-step process:

Step 1: Check Credit

Before applying, you should find out your credit score to get a better idea of the rates to expect on your loan. Those with better credit history can expect lower rates, starting at 4.99%.

Step 2: Browse Loan Offers

After filling in the online application, you’ll receive a list of offers. Compare the offers available to find the loan that best suits your needs and budget. You can conveniently upload any requested documents through the online portal.

Step 3: Receive Your Money

Upon approval, you can expect to receive your money in just as 1 to 2 business days after verification.

Loan Terms

PenFed offers flexible terms, so you can adapt the conditions upon applying. PenFed provides personal loans up to $20,000 with repayments up to 72 months. APR starts at 7.74%, and your rates will depend on your financial situation, such as debt to income ratio and credit score.

Some lenders will charge a fee upfront. Not the case with PenFed, which will never make you pay an origination fee. You can also pay off your loan early, without a prepayment penalty.

In addition to their personal loan products, PenFed also offers a range of banking and financing services, including checking, savings, IRAs, auto loans, home loans, and credit cards.

Customer Support

If you have any questions, you can find out more information on the PenFed website. Between the searchable FAQ and help center, you should have access to enough information to get started. Navigation is pretty straightforward, and their website will walk you through the lending process. You can also follow PenFed on social media, including Facebook, Twitter, Linkedin, YouTube, and Instagram.

If you’d like to speak to a customer support agent directly, PenFed offers phone support during the following hours:

Monday - Friday: 7:00 am to 11:00 pm Eastern Time

Saturday: 8:00 am to 11:00 pm Eastern Time

Sunday: 9:00 am to 5:30 pm Eastern Time

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Pros
  • No origination fees
  • No early payoff penalty
  • No application fees
Cons
  • High minimum credit score
  • Requires credit union membership
FAQs About Personal Loans
Before taking a personal loan be sure you familiarize yourself with all the terms and conditions associated with the loan. To help you get started, we've compiled some of the most frequently asked questions about personal loans below.
What is a personal loan?
Personal loans are loans taken from a lender and paid back by the borrower in fixed monthly installments. These loans can be taken for a wider variety of reasons ranging from home improvement to financing large purchases. Unlike mortgage loans or some types of business loans, personal loans are almost always unsecured, meaning they aren't backed by any collateral.
Can I take a personal loan online?
Absolutely! By using an online personal loan service you save yourself the trouble of arranging meetings with banks and/or credit unions and you can easily compare offers while sitting at home. Furthermore, many online personal loan lenders offer better rates than banks and provide more flexible terms ranging from 61 days up to 180 months. These online personal loan services often function as a middleman between the borrower and the lender. The loan service will connect you with a lender who will make a loan offer specifying the APR and loan terms.
What do I need in order to apply for a personal loan?
Applying for a personal loan is much easier than you might've thought. Many online applications take only a few minutes to complete and don't require many personal details. Usually, loan applications simply require details such as name, address, and contact information, plus some basic questions concerning your financial history, credit score, and income.
What is APR*?
APR stands for annual percentage rate and refers to the annual interest rate charged for your personal loan. Actual APR numbers vary but will always cap at 35.99%. Typically, online lenders will offer an APR somewhere between 5% and 30%. The APR of your loan will depend on various factors such as credit score, income, and financial history. *APR rates mentioned include associated fees.
How long do I have to repay the loan?
Much like APR, the term or length of your loan will depend on a variety of factors. Repayment periods can range from 61 days to 180 months. One of the great things about online personal loan services is they allow you to compare loan terms meaning you can choose a repayment period that best suits your financial goals.
Representative Example
Assuming a loan of $5,000 over 36 months at a fixed rate of 10.5% per annum and fees of $60.00.
This would result in a representative rate of 11.3% APR, with monthly repayments of $162.51, for a total amount paid of $5,910.44.
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