Loan amounts and interest rates
PenFed Credit Union loan amounts range from $ 600 to $ 50,000. The minimum and maximum amounts are similar to those of the others
offer. For example, the Navy Federal loan amount range is $ 250 to $ 50,000, and the Connexus personal loan range is $ 2,500 to $ 25,000. Online lenders usually have higher minimum loans.
PenFed offers repayment terms ranging from one to five years. If you want to prepay your loan, there are no prepayment penalties.
Interest rates at PenFed range from 5.99% to 17.99% APR. This is a starting point below the Navy Federal APR range of 7.49% to 18.00% and comparable to Alliant’s lowest rate, which starts at 6.24% APR.
Advantages and disadvantages
How PenFed Credit Union works
PenFed Credit Union provides unsecured personal loans, which are loans for which you do not need to provide collateral, such as a house or a car.
PenFed has several acceptable reasons for taking out a personal loan, including debt consolidation, home renovations, and medical and dental bills.
You don’t need to be a member of the credit union to apply for a personal loan, but you will need to be a member to get your loan. If you have served in the military or worked in qualifying associations or organizations, you will be eligible. If that doesn’t apply, you can easily sign up by opening a savings account with a minimum deposit of $ 5.
You can get a personal loan from PenFed in all 50 states. You can apply with a co-borrower, which may help you get a lower rate if your co-borrower has a good credit rating. You can complete the online application and get your rate in minutes.
You can receive your money the next day, but it can take up to seven business days if you receive the money by check.
To contact customer support, you can message through PenFed’s online portal, use their chatbot, send physical mail, or call Monday to Friday 7:00 a.m. to 11:00 p.m. ET, Saturday 8:00 a.m. to 11:00 a.m. ET, or Sunday 9:00 a.m. to 5:30 p.m. ET.
If you’re away from your computer and need to manage your loan, PenFed has a mobile app in the Google Play and Apple stores, and the app has good reviews.
What credit score do you need?
PenFed Credit Union does not disclose its minimum credit score to qualify for a personal loan – although the better your credit history, the more likely you are to qualify for a loan at a favorable rate.
To get your credit report from one of the three major credit bureaus, use annualcreditreport.com. You can get your report for free once a week until April 20, 2022. Although you will not receive your credit score on this report, you will get information about your credit and payment history. By examining your credit report, you can spot errors and determine where you can improve.
You can get your score free of charge from your credit card statement or online account. You can also buy it from a credit reporting agency.
You can check your rates without impacting your credit score. However, the lender will do a credit check after you accept the loan offer. Thorough investigation gives the lender a complete view of your credit history, but can negatively affect your credit score.
After you take out the loan, your payments (or lack thereof) will appear on your credit report. Regular payments can help improve your credit score, while late or missing payments can damage your score.
Is PenFed Credit Union trustworthy?
PenFed Credit Union has an A + reliability rating from the Better Business Bureau. The BBB determines its reliability score by evaluating a company’s response to customer complaints, the veracity of advertising and the transparency of business practices.
PenFed has no recent public controversies.
Between its top-notch BBB score and clean history, you might decide that you are comfortable taking out a personal loan with PenFed.
How PenFed Credit Union Stacks Up
Connexus Credit Union has both the highest minimum loan amount and the lowest maximum loan amount of the three credit unions – its range is between $ 2,500 and $ 25,000. You can get a loan as low as $ 250 with Navy Federal Credit Union or $ 600 with PenFed Credit Union. Both credit unions allow you to subscribe up to $ 50,000.
It is more difficult to qualify for a Navy Federal membership than PenFed or Connexus, as you are only eligible if you are an active military or veteran, as well as an employee or retiree of the Department of Defense. Family members of any of the above groups are also eligible.
You can join PenFed if you have served in the military or worked in qualified associations or organizations. You can also sign up by opening a savings account with a minimum deposit of $ 5. You can become a Connexus member if you are affiliated with certain designated groups or if you live in specific areas of Wisconsin, Minnesota, and Ohio. Otherwise, you can join the Connexus Association with a one-time donation of $ 5.
You’ll basically get the same maximum interest rate with all three credit unions, and none of them charge prepayment penalties.
Frequently Asked Questions
Is PenFed legitimate?
Yes, PenFed Credit Union is a legitimate credit union federally insured by the National Credit Union Administration. It has a high reliability rating from the Better Business Bureau and offers a variety of financial products besides loans.
Is it difficult to get a personal loan from a credit union?
As long as your credit is in good condition, getting a personal loan from a credit union is not difficult. Although you may have to join the credit union to get a loan, as with PenFed Credit Union, many credit unions have simple requirements to qualify.
Is a credit union a good place to get a personal loan?
Credit unions are a good choice for getting a personal loan – they often have high quality customer service and smaller minimum loans than online lenders if you just need a little cash to help. Credit unions also have their maximum interest rate capped by the National Credit Union Administration at 18%, so you can get a better rate with one than with an online lender.
How much can you borrow from a credit union?
The maximum amount you can borrow depends on the credit union you have chosen to borrow from and your particular financial situation. Generally, you will be entitled to more money with a higher income and a higher credit rating. On our list of the best credit unions for personal loans, the maximum amounts range from $ 25,000 to $ 50,000.