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PenFed Personal Loans Review

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Founded in 1935, Pentagon Federal Credit Union, commonly known as PenFed, is a United States federal credit union that offers a variety of loans, savings and deposit accounts, credit cards, and other financial services. Headquartered in McLean, Virginia, PenFed is the nation's second largest federal credit union, with assets of $25 billion and more than 1.8 million members as of July 2018.
 
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How is PenFed rated?

Breakdown

4.0/5
Flexibility
4.0/5
Interest Rates
4.0/5
Discounts & Fees
4.0/5
Customer Service and Reputation

Overall Rating: 4 / 5 (Excellent)

PenFed personal loans are a great choice for individuals located in the Washington, D.C., area, Maryland, Virginia, California, Florida, Georgia, Hawaii, Nebraska, New Mexico, New York, North Carolina, Texas and at military bases in Guam, Japan, Portugal and Puerto Rico that are looking for predictable payments that will not change over time. Whether people are interested in debt consolidation, home improvement, auto repair or vacation, PenFed’s personal loans provide immediate access to funds upon approval. While other lenders may charge up to 6% for miscellaneous opening or closing costs, its personal loans have zero origination fees and no hidden costs.

PenFed Loan Specifics

Loan Specifics - 4.3 / 5

PenFed provides a timely approval process and disbursements for its personal loans. Consumers can choose repayment terms of between 12 and 60 months and can use the funds for a variety of purposes. Its personal loan amounts go up to $50,000.

Loan Uses

Debt/Credit Card Consolidation
Buy Home
Major Purchase
Home Improvement
Medical Expenses
Wedding
Moving/Relocation
Vacation
Start Business
Education
Taxes
Loan Minimum
$600.00
Loan Maximum
50,000
Term Length
12 to 60 months
Direct Deposit
Yes
Pay Creditors Directly
No
Disbursement Time
1-3 business days

PenFed Qualification

Qualifications & Flexibility - 4 / 5

PenFed requires standard qualifications for its personal loans, including financial and residential information, social security and credit score. It includes on its website an online personal loan calculator that enables prospective borrowers to know the amount they would qualify for and the payments and term options. Its practices are very similar to other direct lenders.
Personal Income Considered
Yes
U.S. Citizen
Yes

PenFed Cost of Loan

Costs, Interest Rates, Discounts & Fees - 4.3 / 5

Unlike many of its competitors, PenFed does not charge an origination fee. Its APR can be as low as 4.99%. However, it will be determined at the time of disbursement and will be based on the customer’s application and credit information. Unfortunately, not all applicants will qualify for the lowest rate. Rates quoted on its website assume excellent borrower's credit history. Also, the loan amount determines the rate and term. All loans are subject to a minimum monthly payment of $50. PenFed clearly highlights all this information on its website, which indicates its transparency with customers.
APR Range
4.99% - 17.99%
Origination Fee
0

PenFed Reputation

Customer Service and Reputation - 4 / 5

Company Name
PenFed
Type of Institution
Credit Union
Year Founded
1935
Number of BBB Positive Reviews
29
Trust Pilot Rating
3.7 out of 5
Date Collected
1997-02-16
Company Name
PenFed
Headquarters Address
7940 Jones Branch Drive, McLean, VA, 22102
Homepage URL
https://www.penfed.org/personal/personal-loans

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Customer Comments & Reviews

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J
Joey
7/30/2021
They apparently "approve" you for a loan at one interest rate, send you a legal looking contract that says for are approved and the funds are on the way, then without telling you a thing they more than double the "approved" rate and now you have a higher payment. Complete shell game and I would highly recommend not using PenFed or Upgrade for any personal loan!! PS- only reason I gave a one star is because I had to put something!

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