Penfed Credit Union Personal Loan

How To Apply For A Personal Loan With Penfed Credit Union

PenFed will give you an idea of the rate you qualify for before it makes a final loan offer. This preliminary rate will not require a hard pull on your credit report, so it wont affect your credit score.

The loan application requires the following information:

• Reason for the loan
• Basic personal information such as name, address, Social Security number, phone number and email address
• Personal annual income
• Monthly mortgage or rent payment

You can apply online or at one of PenFeds roughly 45 branches. You can track the status of your loan application online or by calling PenFed. Telephone service hours, in Eastern time, are: Monday through Friday 7 a.m. to 11 p.m. Saturday 8 a.m. to 11 p.m. and Sunday 9 a.m. to 5:30 p.m. PenFed also has a highly rated mobile app that can be used to track the status of a personal loan application

Who Is Penfed Best For

PenFed is best for consumers who want a personal loan from a instead of a major bank or online provider. Although PenFed was created to serve U.S. military members and veterans, in addition to federal employees and retirees, it has expanded its membership to nonmilitary members.

Anyone can apply for a loan through PenFed however, if youâre approved and choose to move forward with your loan, youâll need to become a member of the credit union. Becoming a member is easy, and it typically only takes a few minutes. While the membership is free, youâll need to deposit at least $5 into a new PenFed savings account.

How To Qualify For A Penfed Loan

PenFed doesnt make many borrower requirements public. According to the lender, it generally likes to see:

• Minimum credit history: Two years.

• Debt-to-income ratio: Below 55%.

Loan example: A three-year, $20,000 loan with an 11.2% APR would cost $657 in monthly payments. Youd pay $3,640 in total interest on that loan.

Don’t Miss: Filer Credit Union Online Banking

Where Does Penfed Credit Union Fall Short

• Just opening an account with PenFed requires a pull of your credit report.
• Account required. Youll be required to keep a savings account open at minimum for the life of your loan.
• Limited branches. Physical locations can only be found in Florida, Guam, Hawaii, Maryland, North Carolina, New York, Puerto Rico, Tennessee, Texas, Virginia and Washington, DC.

Youre Our First Priorityevery Time

We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.

Recommended Reading: All In Credit Union Troy Al

Penfed Personal Loans: 2022 Review

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

Penfed Personal Loan Requirements: How To Qualify

• Minimum credit score: Not specified
• Minimum credit history: Hard Pull
• Maximum debt-to-income ratio: Not shared

The eligibility requirements for a personal loan typically comprise your credit score, repayment history and income. Lenders will use these and other factors to determine your creditworthiness .

Unfortunately, PenFed personal loan doesnt make its criteria publicly available the lender only says that it will request certain information during the application process, including:

• Income verification: Recent pay stubs, bank or retirement account statements, tax returns
• Identity verification: Copy of government-issued photo ID, newest utility bill, Social Security card

PenFed personal loans also come with the requirement of becoming a credit union member, though the lender says this is a seamless process.

Don’t Miss: Hyatt San Francisco Union Square

Increase Your Credit Score

The number one factor in your chances of getting a loan is your credit score.

Your credit score is a numerical indicator of your financial trustworthiness. The better your credit score is, the less a lender will worry about you not paying your bill on time.

If you have a poor credit score, lenders might think twice about giving you their money.

Good credit gives you access to the most loans from different lenders and qualifies you for better interest rates, making your loans cheaper.

Your credit score is calculated from five factors:

The biggest factor in your credit score is your payment history.

That means that the best way to improve your score is to make on-time payments on your bills over the course of months and year.

Unfortunately, this is also the slowest way to improve your score, and most people in need a loan dont have the luxury of time.

If you find yourself in that situation, there are some short-term credit-boosting tricks.

The first thing you should do is stop applying for new credit cards or loans in the months leading up to your application for an important loan.

Each time you apply for a loan, it shows up on your credit report and your score drops by a few points.

After a few months, your score recovers slightly, and record of the applications is dropped from your report after two years.

Another thing to do is to pay down your existing debts as best you can.

You can also stop using your credit cards to reduce the balance that the card issuers report.

Where Penfed Falls Short

No co-signed option: PenFed does not let borrowers add a co-signer to their application to improve their chances of qualifying. Like a joint borrower, a co-signer can improve your chances of qualifying, though they cant use the funds.

No direct payments to creditors: Unlike lenders that focus on debt consolidation, PenFed does not send payments directly to creditors when you consolidate debts with a loan. Instead, the funds are deposited into your checking account and you pay off other debts yourself.

» COMPARE: Best debt consolidation loans

No option to change your payment date: You cannot choose your payment date before signing the loan agreement or change it after. Many lenders let you do one of the two, though some offer both. According to the lender, you can extend your payment date due to hardship if needed.

Also Check: Used Auto Loan Rates Credit Union

How To Apply For A Loan With Penfed Credit Union

You must be a PenFed member to apply for a loan. Members must have at least one savings account open with a minimum deposit of $5.

To apply for a loan, follow these steps:

Once you start your application, youll need to fill out requested information as youre prompted. You can check the status of your application at any time via the online portal. Once youre logged in, simply click Apply Now from the main menu page and then select Recent Applications.

Eligibility requirements for PenFed membership

To be eligible for membership, you must fit one of the following categories:

• Serve in or are retired from the US military or uniformed services.
• An employee of the US government.
• An employee of a qualified organization, such as West Point, Valor or the DC VA Medical Center.
• Live or work at an eligible location.
• Related to or a roommate of someone who is eligible.
• A member of one of the supported organizations, such as the American Society of Military Comptrollers or Reserve Officers Association.

You can also become eligible by joining a civilian-friendly military group. The National Military Family Association and Voices for America’s Troops are the two that PenFed lists on its site. It also provides the option to join either organization directly from its online membership application page.

How Does It Compare

You can get a personal loan from a number of companies other than PenFed. Take the time to find the right loan for you.

When comparing personal loans, start by looking at:

• Interest rates. Lower rates are better because they result in a lower loan cost and lower monthly payments.
• Fees. They mean that a loan costs more, both in total and each month. Look for loans with low or no fees.
• Fits your needs. If you need to borrow $40,000, make sure that the lender will let you borrow that much. If you need five years to pay the loan back, make sure the lender offers five-year loans.

Recommended Reading: Elga Credit Union Customer Service

Find The Right Loan For You:

• Borrow up to $25,000
• Competitive Fixed Rates
• Convenient Repayment: Payroll Deduction or Online Payment Transfer

And now, with allU.S. Share Savings and Share Certificate-Secured Loans, you can borrow at our lowest fixed rates. This allows our members to use funds they deposit at the Credit Union as an economical way of borrowing while keeping savings untouched.

The Best Credit Unions For Personal Loans Of September 2022

• Frequently asked questions

Insider’s experts choose the best products and services to help make smart decisions with your money . In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

The highest APR that any credit union can charge on most loans is currently capped at 18% by the National Credit Union Administration.

You can get a personal loan from many types of institutions, but you may prefer to go through a credit union.

Also Check: Coast Central Credit Union Crescent City

Compare Offers To Find The Best Loan

As you begin to search for a personal loan, it can be helpful to compare several different offers to find the best interest rate and payment terms for your needs. This comparison tool asks you 16 questions, including your annual income, date of birth and Social Security number in order for Even Financial to determine the top offers for you. The service is free, secure and does not affect your .

This tool is provided and powered by Even Financial, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Even Financial and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers.

Is Penfed Credit Union Trustworthy

PenFed Credit Union has an A+ rating from the Better Business Bureau, non-profit organization focused on consumer protection and trust. The BBB determines its score by evaluating a company’s response to customer complaints, truthfulness in advertising, and transparent about business practices.

PenFed doesn’t have any recent public controversies.

Between its top-notch BBB score and clean history, you might decide you’re comfortable taking out a personal loan with PenFed.

Read Also: Best Credit Union In Houston

At A Glance: Penfed Credit Union Personal Loans

• 4.99% to 17.99%APR Range
• NoneMinimum Credit Score
• $600 to $50,000Loan Amount Range
• 12 to 120 monthsRepayment Terms
• Two DaysTime to Receive Funds

WHY WE GEEK OUT

PenFed is a credit union established in 1935 that provides a wide range of financial services, including personal loans. PenFed Credit Union serves 2.5 million members and is accessible in all 50 states, the District of Columbia, Guam, Puerto Rico and Okinawa.

PenFed Credit Union is perfect for borrowers seeking modest loan amounts of up to $50,000 to fund home improvements, debt consolidation, transportation, medical and dental expenses and other important purchases.

Borrowers looking for borrowing limits of over $50,000 may find PenFed Credit Union unsuitable. PenFed Credit Union does not have a minimum credit score requirement.

PROS & CONS

• Relatively low minimum credit requirements
• No origination fees
• No early payoff penalty fees
• Available in all 50 states

Cons

• Low borrowing limits of $50,000
• Charges late payment fees
• Must become a member to receive a loan

LENDER DETAILS

• 4.99%17.99% APR
• Minimum/maximum loan amount: $600$50,000
• Minimum credit requirements: None
• Repayment terms: 12120 months
• Time to receive funds: Two days

Apply For A Penfed Personal Loan

If youre considering a personal loan from PenFed, you can use the credit unions personal loan calculator to estimate your monthly payments. You can also check the rate youre likely to qualify for with just a soft credit inquiry that wont impact your credit score.

After checking your rate, take the following steps to complete your loan application:

Don’t Miss: Kiddie Academy Of Union Park

More About Penfed Credit Union

PenFed was established in 1935 and has historically served the US military and federal employee communities. Over 1.6 million members make up PenFed, making it the second-largest federal credit union in the US. As a credit union, PenFed members are owners and have equal vote when electing the board of directors regardless of the amount of cash you have or products you use.

As of August 2018, PenFed has partnered with Sallie Mae to help its members finance their college education through undergraduate, graduate and parent student loans, as well as a scholarship search tool.

Exactly How Bankrate Pricing Penfed Borrowing Commitment

Editorial disclosure: Every studies are ready by the Bankrate staff. Viewpoints indicated therein is actually only those of customer and also have not been examined or approved by people advertiser. All the info, and additionally prices and you will fees, exhibited about comment try precise at the time of the time out of the latest opinion. Look at the investigation on top of this page plus the lenders website for the most newest recommendations.

Don’t Miss: Space Coast Credit Union 24 Hour Phone Number

Penfed Personal Loan Rates Fees & Other Terms

Category Rating: 100%

• Overall APR range: PenFed offers fixed-rate personal loans with an APR range of 5.99% – 17.99%. PenFed loans tend to be inexpensive compared to most other lenders because, as a federal credit union, they are required to cap their personal loan APRs at 18%.
• How rates are determined: The exact rate you get will be based on your overall creditworthiness and how long youve been a PenFed member.
• Fees: PenFed does not charge any origination or early repayment fees on their personal loans. They do have a $20 – $25 late fee and a $30 returned payment fee.
• Loan amounts & timelines: PenFed personal loan amounts range $500 – $50,000. They offer payoff terms 12 – 60 months.

Why Should I Consider Taking Out A Loan With Penfed Credit Union

• Cosigners welcome for student loan refinancing. When you consolidate your student debt, youre allowed to apply with a cosigner even if you previously didnt have one.
• Financial hardship programs available. Financial hardship can strike anyone at any time. PenFed allows you to easily request help if you’re worried about falling behind on your loan payments by filling out a simple form and providing a few supporting documents. Note that the application for assistance usually takes four to six weeks for processing and review.
• Get all of your banking needs met in one place. Checking and savings accounts, several types of credit cards, money market certificates and IRAs are all available when you become a PenFed member.
• Membership benefits. Auto, finance, home, personal and retail discounts are available to members of PenFed. Sprint, Vantis Life, ADT Home Protection, Intuit and National Car Rental are just a few of the partnered companies.
• Can join without being in the military. While its products are designed to be accessible to military members, the membership is not limited to just the military. You can also join by volunteering with certain groups or becoming a member of certain associations.

Recommended Reading: Credit Union For Business Accounts

How We Chose The Best Credit Unions For Personal Loans

Personal Finance Insider’s mission is to help smart people make the best decisions possible with their money. With that in mind, we reviewed several credit unions closely. We looked over multiple factors to figure out the best credit unions for personal loans, including:

• Annual percentage rates: The lower the interest rate on your loan, the better. We tried to choose lenders that offer low minimum and maximum rates across the spectrum of credit scores.
• Loan term length: We placed an emphasis on personal loans with a number of repayment lengths.
• Loan amount range: We chose lenders with a variety of loan minimums and maximums, so depending on the lender you choose, you may be eligible to take out anywhere from $500 to $100,000. Your exact loan amount will depend on your creditworthiness and other factors.
• Eligibility requirements: Generally, you can’t take out a personal loan from a credit union unless you’re a member, so we aimed to pick credit unions that make it easy to qualify for membership.
• Trustworthiness: Borrowing from an honest lender is often a top priority for many people. With the exception of Navy Federal and First Tech, we chose lenders with an A+ grade from the Better Business Bureau to provide the most trustworthy lenders possible. The BBB gives First Tech a C grade because of complaints filed against the business, while the group currently does not have a rating for Navy Federal as the credit union responds to previously closed complaints.