PenFed Credit Union Review
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PenFed Credit Union Reviews

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Lauren Le-Hair

WRITTEN BY

Lauren Le-Hair

Student Loans Consolidation
Student Loans Consolidation
About PenFed Credit Union

Pentagon Federal Credit Union (PenFed) was established in 1935 and has grown to become the third largest credit union in the US. The company boasts over 2.8 million members and caters to individuals in all 50 states, with more than $36 billion of assets under management. PenFed offers a wide range of financial products, including mortgages, personal loans, HELOC, student loans, and student loan refinancing.

Headquartered in Virginia, the company holds valid regulation with the National Credit Union Administration. PenFed is also known for its competitive interest rates and attractive features, such as spousal loan refinancing.

8.0

LS SCORE

8.0

CREDIBILITY

8.0

SUPPORT

8.0

ACCESSIBILITY

PenFed Credit Union Personal Loans Review

PenFed Credit Union provides personal loans for a wide range of different purposes. These are loans that bring with them minimal fees, which is ideal. There is a good range of term lengths and loan amounts you can get, as well as competitive rates.

PenFed Credit Union Personal Loans Highlights

LOAN AMOUNT

$600 - $50,000

LOAN REPAYMENT TERM

6 months to 6 years

MIN CREDIT SCORE

620

APR FIXED RATE

7.74% - 17.99%

APR VARIABLE RATE

7.74% - 17.99%

FUNDING TIME

1-2 days

ORIGINATION FEE

None

PREPAYMENT FEE

None

OTHER FEES

N/a

SOFT CREDIT PULL

Yes

LENDER TYPE

Direct

Pros & Cons

  • Fast funding time
  • Great reputation
  • Low-fee loans
  • Wide range of term lengths
  • You need to be a PenFed Credit Union member to get a loan
  • Doesn’t disclose all eligibility requirements

Personal Loans Types

  • Unsecured Personal Loans

Loan Purpose

  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Other

PenFed Credit Union Personal Loans Terms & Requirements

PenFed Credit Union does not really have a hard and fast rule about minimum credit scores people need to have to get a personal loan. However, it is usually advised that you have a score of at least 620 to proceed. PenFed Credit Union caters to loan requests worth as little as $600 and can go all the way up to $50,000.

There is an ideal range of term lengths, starting at 6 months and going up to 6 years. There are no origination or prepayment fees you need to pay, but late fees are in place.

How to Apply

PenFed step 1: Loan detaill
Screen 1

Loan detaill

Qualification Requirements

  • Social Security Number
  • At least 18 years old
  • US permanent resident or citizen
  • At least 620 credit score
  • Must be a member of the credit union

 

Required Information

  • Credit history
  • Financial history
  • Copy of government-issued ID
  • Social Security card
  • Loan purpose
  • Proof of residence
  • Proof of income

 

Application Steps & Time Frames

To start off, you can check to see what sort of rates you might be entitled to with a PenFed Credit Union personal loan. This can be done by filling out the pre-qualification form on the PenFed Credit Union website.

You need to enter basic info such as your credit score, loan purpose, and desired loan amount. You will then be showcased a range of loan offers from PenFed Credit Union. If you are happy to proceed with one of these loans, you then submit a more thorough application. Process.

This sees you providing additional info and verifying it by supplying certain types of documents. The approval process is generally quite speedy. Once approved, it can take just 1-2 business days to receive your borrowed money.

State Availability

Available in all states

PenFed Credit Union Auto Loans Review

If you are in the market for a new or used car, then PenFed Credit Union can help you out with the financing. It provides you with a great amount of flexibility when you are shopping around looking for the best deal. You can often get better rates through PenFed Credit Union than if you were financing the car through a dealership.

PenFed Credit Union Auto Loans Highlights

LOAN AMOUNT

$500 - $150,000

LOAN REPAYMENT TERM

36-84 months

APR FIXED RATE

5.39% - 7.04%

APR VARIABLE RATE

5.39% - 2.04%

FUNDING TIME

1 days

ORIGINATION FEE

None

PREPAYMENT FEE

None

OTHER FEES

N/a

MAX VEHICLE AGE

years

SOFT CREDIT PULL

Yes

LENDER TYPE

Direct

Pros & Cons

  • Competitive APRs
  • Offers refinancing on existing auto loans
  • Trustworthy lender
  • Caters to new and used vehicles
  • Not all requirements fully disclosed
  • Need to be a PenFed Credit Union member

Auto Loans Types

  • New Car Loan
  • Used Car Loan
  • Auto Refinance Loans

Vehicle Types

  • Car

PenFed Credit Union Refinance Highlights

REFINANCE AMOUNT

$500

REFINANCE APR FIXED RATE

Min 5.3%

REFINANCE APR VARIABLE RATE

5.3% - 7.0%

PenFed Credit Union Auto Loans Terms & Requirements

PenFed Credit Union will cater to purchases or new or used cars, as well as refinancing existing auto loans. There are certain loan terms that will change depending on if you are buying a new or used car.

The better APRs will be available for new car purchases. The available term lengths generally range between 3 and 7 years. There are no prepayment penalties or origination fees that need to be paid, but late fees will be charged if you miss payments.

How to Apply

PenFed Credit Union step 1: Buying service
Screen 1

Buying service

Qualification Requirements

  • Social Security Number
  • At least 18 years old
  • US permanent resident or citizen
  • Certain vehicle mileage requirements
  • Must be a member of the credit union

Required Information

  • Credit history
  • Financial history
  • Copy of government-issued ID
  • Social Security card
  • Vehicle info
  • Proof of residence
  • Proof of income

Application Steps & Time Frames

Getting an auto loan from PenFed Credit Union is generally straightforward. There is a form on the PenFed Credit Union website that you can fill out to see what rates you can expect if getting a car loan. A soft credit check is done at this point, so your credit score won’t be impacted.

Typical info required at this point includes credit score, the value of the loan, and some details about the vehicle. Once you submit this form, you will be presented with some potential loan options. If you like a given offering, then you can go ahead and submit an official application.

A hard credit check is necessary at this point. You also need to provide additional info about the vehicle and yourself. Certain documentation might need to be supplied, such as a government-issued ID. Once your application gets approved, funding can arrive in just a day or two.

State Availability

Available in all states

PenFed Credit Union Student Loans Review

PenFed gives its prospective borrowers the funds they need to make higher education happen. Offering a range of financial support options, including undergraduate loans, graduate loans, and no essay scholarships, PenFed student loans cater to college graduates in all 50 states. The company can cover up to 100% of the cost of your undergraduate, professional, masters, or doctoral degree. 

With award-winning non-co-signed and co-signed loans for college students, you can also see your rate without impacting your credit with PenFed. Find out more about PenFed student loans in the table below.

PenFed Credit Union Student Loans Highlights

LOAN AMOUNT

$7 - $500

APR FIXED RATE

7.74% - 9.93%

MIN CREDIT SCORE

670

LOAN REPAYMENT TERM

5, 8, 12, or 15-year terms

FUNDING TIME

10 days

ORIGINATION FEE

None

PREPAYMENT FEE

None

OTHER FEES

None

SOFT CREDIT PULL

Yes

LENDER TYPE

Direct

Pros & Cons

  • Joint refinancing available for married couples
  • Good interest rates
  • The lender has a reputable standing
  • Bachelor’s degree is a minimum requirement
  • Some negative customer support reviews
  • No longer terms available for max loan

Student Loans Type

  • Private student loans
  • Student loan refinance

PenFed Credit Union Refinance Highlights

REFINANCE AMOUNT

$7,500 - $500,000

REFINANCE FIXED APR

7.74% - 9.93%

Pros & Cons

  • Joint refinancing available for married couples
  • Good interest rates
  • The lender has a reputable standing
  • Bachelor’s degree is a minimum requirement
  • Some negative customer support reviews
  • No longer terms available for max loan

PenFed Credit Union Student Loans Terms & Requirements

Loan Terms

PenFed’s loan terms are stated clearly. The APRs offered are competitive in the marketplace. Key figures are:

  • Fixed APR – 7.74% to 9.93%
  • Variable APR – 7.12% to 9.48%
  • Minimum loan amount – $7,500
  • Maximum loan amount – $500,000

People who have private education or Parent Plus loans will be able to apply for PenFed loans. Married couples can also refinance two of their loans into a single one. This new loan will be at a rate that covers the higher credit score of the two people, as well as joint income. Therefore, you can get the most optimal interest rate on your loan.

Repayment Terms

PenFed offers four different loan terms. You can take out a PenFed loan over 5, 8, 12, or 15 years. These options are pretty low compared to other loan providers, who may offer repayment terms of up to 25 years. Also, this could lead to higher monthly repayments compared with other providers. 

PenFed does not offer any formal deferment or forbearance options. If you come into hardship, such as a job loss, your interest will continue accumulating. If you have used a co-signer for your loan, it will be the co-signers’ responsibility to ensure these amounts are paid.

How to Apply

The PenFed site has a dedicated section for student loans. From here, you can choose to either apply for an in-school student loan or a student loan refinancing. We opted to refinance our student loan, at which stage we arrived at the following home screen.

Penfed-step1: perks and benefits
Step 1

Perks of refinancing with Penfed

After clicking through ‘Find My Rate’, PenFed prompted us to enter our personal details, including name, address, phone number, SSN, and the amount we wanted to borrow. On completing this basic information, we had to complete a test to assess our loan eligibility.

Following our completion of this simple application screen, there are five further stages to assess eligibility for student loan refinancing. The first step asked us to reconfirm personal data, with the second reconfirming our phone details and contact preferences. The third step was to verify our housing and occupation status. The fourth step was to enter the details of all existing loans that were in place. The final stage of the process was to sign an Election, Terms & Conditions, Privacy Policy, and Application and Solicitation Disclosure.

The application process took 15 minutes in total. After submitting our information, we were sent for a credit check, which returned an instant result. Our credit check returned successfully, and we PenFed invited us to open a PenFed membership. There were no fees associated with opening the account, but we needed to deposit a minimum of $5. After this, a range of loan products became available to us. 

After selecting the rate we wanted for our refinancing, we were invited to review the loan to ensure it was what we wanted. Overall, the process was very smooth and efficient.

Required Information

To start the loan process, you will have to provide personal information to set up an account and perform a credit check. This is all done online, with the following details being required:

  • Name
  • Address 
  • Date of birth
  • Social Security Number
  • College attended
  • Degree obtained
  • Phone number
  • Email address
  • Monthly income details
  • Employment history

State Availability

Available in all states

PenFed Credit Union Online Banking Review

There is a good range of different savings and checking accounts that you can access through PenFed Credit Union. Competitive APYs are offered, with monthly fees usually non-existent or easily avoided. The minimum required deposits are quite low and you will be able to get access to some good cashback rewards.

PenFed Credit Union Online Banking Highlights

APY SAVINGS

Max 2%

APY CHECKINGS

0.15% - 0.35%

ATM NETWORK

85,000+

OTHER FEES

Yes

Pros & Cons

  • Reputable institution with Competitive APYs
  • Wide range of account options
  • Cashback rewards available
  • Money market certificates minimum deposit is high

Account Type

  • Checking
  • Savings
  • Certificates of Deposit (CD)

PenFed Credit Union Checking Highlights

DEPOSIT AMOUNT

min $25

APY

0.15% to 0.35%

PenFed Credit Union Savings Highlights

DEPOSIT AMOUNT

min $5

APY

Max 2%

MIN BALANCE

$5

Pros & Cons

  • No monthly maintenance fee
  • FDIC insured
  • Low initial deposit required
  • Competitive interest rates
  • Limited physical branches

APYs

Account 1 Year 3 Years 5 Years
Access America 0.15%-0.35% 0.15%-0.35% 0.15%-0.35%
Premium Online Savings 2% 2% 2%
Money Market Certificates 4.25% 4.05% 3.90%
Regular Savings 0.05% 0.05% 0.05%
Money Market Savings 0.05%-0.15% 0.05%-0.15% 0.05%-0.15%

Features Benefits & Rewards

Cashback on purchases with certain cards

Account Types

Free Checking

The Free Checking account does not carry any monthly fee and no minimum account balance requirements are in place. The minimum required opening deposit is just $25 and you will have access to over 85,000 no-fee ATMs across the US.

You can set up direct deposits that allow you to get your paycheck as many as two days early. There is a PenFed rewards card you can get that will give you 2% cash back on all purchases.

Account Type Key Features Bonuses
Free Checking
  • No monthly fee
  • Minimum required opening deposit is $25
  • No minimum account balance requirements
2% cashback on all purchases card available

Access America

The Access America checking account is aimed at people who are going to have a higher account balance. There is a $10 monthly fee in place, but this can be avoided if you have direct deposits of at least $500 coming in each month or your daily balance is at least $500.

You will earn 0.15% APY on daily balances under $20,000 and 0.35% APY for balances between $20,000 and $50,000. You can set up direct deposits that allow you to get your paycheck as many as two days early.

Account Type Key Features Bonuses
Access America $10 monthly fee easily avoided

Starting APY of 0.15%

Ability to get paycheck up to two days early

Premium Online Savings

This is a typical savings account that allows you to earn an APY of up to 2%. You need to deposit just $5 when opening this account type. There is no monthly maintenance fee and you can make free transfers.

Account Type Key Features Bonuses
Premium Online Savings
  • APY of 2% on balance
  • No monthly fee
  • Minimum opening balance is $5

Money Market Certificates

The money market certificates have terms between 6 months and 7 years. The minimum required deposit is $1,000 and you can decide to automatically renew at maturity if you wish. The APY for a 1-year term is 4.25%. Your returns are guaranteed and there are early withdrawal penalties in place.

Account Type Key Features Bonuses
Money Market Certificates
  • APY of up to 4.35%
  • Term lengths of between 6 months and 7 years
  • Minimum required deposit of $1,000

Regular Savings

The Regular Savings account gives you 0.05% APY on all of your balances. The minimum opening balance is just $5. Opening such an account allows you to establish your PenFed membership, giving you access to a variety of loan options. A debit card is a part of this account and free funds transfer feature.

Account Type Key Features Bonuses
Regular Savings
  • APY of 0.05% on balances
  • Minimum opening balance required is $5
  • Access to a debit card

Money Market Savings

You can get APY of 0.15% on all account balances of at least $100,000. For sums of $10,000 to $99,999, you will get a 0.10% APY and this drops to a 0.05% APY for balances lower than $10,000. There is no monthly fee and you can get free checks upon request.

Account Type Key Features Bonuses
Money Market Savings
  • APY of up to 0.15%
  • No monthly fee
  • Free checks upon request

Opening an Account With PenFed Credit Union

Setting up a PenFed Credit Union online banking account is usually quite easy to do. The process can be completely done online if you wish. There are basic questions asked, such as details about your home address, employment status, and so on. You can choose from the available account options.

PenFed Credit Union Step 1: choose from the available account options
Screen 1

Step 1: choose from the available account options

Once you fill out all the required info, you might need to supply some documents to verify what you said is true. Then you submit the application, with approval usually being very quick. Once you get the all-clear, you can add funds to your account as you please.

State Availability

Available in all states

Privacy & Security

PenFed is a member of the National Credit Union Administration. As such, the company must comply with strict customer protection rules, ensuring that your private data is treated securely. This, coupled with the strong reputation that PenFed has built up over 80 years of trading, should leave customers satisfied that their data is safe. Rigorous security protocols are in place to ensure that all personal information is managed correctly.

Customer Support

You can reach PenFed customer support via multiple channels, including phone, email, and over social media. Standard working hours are Monday to Friday, so you may have a delayed response if you contact customer support over the weekend. You can find details of how to contact PenFed in the table below.

Phone Support
(800) 247-5626
Mon - Fri
9:00 AM - 7:00 PM EST
Sat - Sun
Closed

In Conclusion

Ultimately, alongside the company’s reputability and decades of experience, PenFed Credit Union is one of the US’ top loan lenders in the industry. With a great range of financial products and services, the company also boasts a solid reputation, top-tier security, and reasonably low-interest rates. Similarly, interest rates have recently risen in line with the market as a whole.

FAQ

Is PenFed a safe company?
Of course, it is. PenFed has been operating for over 80 years and has grown to become the third largest credit union in the US.
Do I need to join PenFed to apply?
Yes, you will need to become a member of PenFed to apply. Opening an account is quick and easy. Furthermore, you only need to hold $5 in your account to proceed with the student loan application.
Can I refinance my student loan from anywhere in the US?
Absolutely. PenFed operates in all 50 states.

PenFed Credit Union Disclaimer

This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will suit their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also assess brands we are not engaged with).

These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewers’ findings and subjective experience, and product popularity, impact the placement and position of the brands within the comparison table. In the event that we assign ratings or scoring, they are based on the standing in the comparison table or according to the other formula in the event detailed explicitly by us. See our How we Rate page and Terms of Use for information.

The reviews, ratings, and scoring are provided “as is” without guarantees or warranties regarding the information contained on our website, which shall not be considered as endorsement. We do our best to keep the information up-to-date. However, an offer’s terms might change at any time. We do not compare or include all service providers, brands, and offers available in the market.

Disclosure

This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

WRITTEN BY

Lauren Le-Hair

As an experienced content writer, Lauren’s passion for the finance sector is only exceeded by her love of writing. Lauren specializes in the financial industry, drawing on her knowledge and experience to deliver top-quality, specialized content with an expert tone of voice and a unique flair. She also holds a First Class (Hons) Batchelor’s degree from Staffordshire University.