What is PenFed Credit Union?
PenFed Credit Union stands for Pentagon Federal Credit Union, a members-only credit union established in 1935 that now services all 50 states in the U.S., as well as Guam, Puerto Rico and Okinawa, Japan. PenFed Credit Union is federally insured by the National Credit Union Administration. It offers car loans, mortgages and several credit card options to members.
According to its mission statement, PenFed Credit Union wants to educate and encourage. PenFed Credit Union has over 1.7 million members and $2.4 billion in assets. It has financed 4,150 homes and given $37 million in cash back to members. The credit union offers other options, including personal loans, student loan refinancing, in-school student loans and personal lines of credit.
In this review, we will be taking a closer look at PenFed Credit Union’s personal loan product.
PenFed Credit Union personal loan highlights
- No origination fee: PenFed Credit Union doesn’t charge any origination fees for its loans. Also, there aren’t any prepayment penalties for paying off your loan early.
- Immediate access: Upon approval, loan funds are available immediately to members for their own use.
- Low APR: With an APR as low as 6.49%, PenFed Credit Union offers one of the lowest rates without origination fees among competing companies.
- Terms: 36 to 60 months.
- Minimum credit requirement: 700
- Fees: Membership with minimum $5 deposit; late payment fee
PenFed Credit Union Personal Loan Details
PenFed Credit Union product details
A personal loan through PenFed Credit Union offers a low starting APR, No origination fee or closing fee, immediate access to funds, and a wide range of loan amounts and offerings.
- Minimum credit score: 700
- Minimum credit history: Not specified
- Maximum debt-to-income ratio: Not specified
Before applying for a loan from PenFed Credit Union, you will need to become a member, which can be done online. There are three steps to becoming a PenFed Credit Union member, the first of which is eligibility. You will be eligible for membership based on military status, employment, association membership or volunteerism.
Applying for a personal loan from PenFed Credit Union
To apply for a personal loan from PenFed Credit Union, you will first need to apply to be a member, which can be done online. You will start the application process online by determining your eligibility based on your military status, employment background, association membership or volunteerism. For example, if you’re an active or retired member of the military, a family member or housemate of a PenFed Credit Union member, an employee of a qualifying organization or you live or work at an applicable location, you are eligible to apply.
If none of the above circumstances apply to you, you can become eligible by becoming a member of one of two qualifying organizations: Voices for America’s Troops or the National Military Family Association. Both memberships cost $17 annually.
If you are eligible for membership, you will submit your name, phone number, email address and address for the second step of the application process. Once your PenFed Credit Union membership has been approved, you will need to apply for a savings account and deposit a minimum of $5 to apply for a loan.
To apply for a personal loan, you will log in to your online PenFed Credit Union account and submit the appropriate documentation for the loan application.
Pros and Cons of a PenFed Credit Union Personal Loan
Who’s the best fit for a PenFed Credit Union personal loan?
Wondering if you might be a candidate for a PenFed Credit Union personal loan? The ideal candidate for a PenFed Credit Union personal loan would be someone who:
- Is a current or retired member of the military
- Is associated with PenFed Credit Union either by location or other family members
- Is interested in supporting military causes
- Has excellent credit
- Is looking for a lower APR without any additional fees
- Is looking for a more long-term loan
- Would like their loan processed quickly
Alternative personal loan options
If you would like to see some other options for personal loan financing, you do have some alternatives. Here are some examples of the other types of lenders that offer personal loans.
- APR: 7.46% – 35.99%
- Credit requirements: 620
- Terms: 36 & 60 months
- Origination fee: 0.00% - 8.00% of the loan balance
Upstart takes your employment history, education and credit score into consideration to help you get a better rate. So it may be helpful if you have a lower credit score but an impressive background or resume. There is no prepayment penalty.
- APR: 5.99% – 16.24%
- Credit requirements: 680
- Terms: 24 to 84 months
- Origination fee: No origination fee
SoFi has no late fees or prepayment penalties, but it does require some kind of household income or a job offer that will begin within 90 days to qualify for a loan. You can borrow between $5,000 and $50,000. It also offers unemployment protection.
- APR: 6.95% – 35.89%
- Credit requirements: 600
- Terms: 36 or 60 months
- Origination fee: 1.00% - 6.00%
LendingClub uses a Soft Pull credit check to check your credit history, so it won’t affect your credit score. There is no prepayment penalty, but it does charge $15 or 5% of your due amount for late payments, whichever is greater, so you’ll want to be timely with those payments.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.75% – 16.24%1||$5,000 - $100,000|
|7.46% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|