PenFed Credit Union Personal Loans Review 2021
Loan Amounts and Interest Rates
PenFed Credit Union loan amounts range from $ 600 to $ 50,000. The minimum and maximum amounts are similar to others
Offer. For example, the Navy Federal loan amount range is $ 250 to $ 50,000, and the range for Connexus personal loans is $ 2,500 to $ 25,000. Online lenders usually have higher credit minimums.
PenFed offers terms ranging from one year to five years. If you want to repay your loan early, there are no early repayment penalties.
PenFed rates vary from 5.99% to 17.99% APR. That’s a lower starting point than Navy Federal’s APR of 7.49% to 18.00%, and on par with Alliant’s lowest value, which starts at 6.24% APR.
Advantages and disadvantages
This is how the PenFed Credit Union works
PenFed Credit Union issues unsecured personal loans, which are loans for which you do not need to provide collateral, e.g. B. a house or a car.
PenFed has several acceptable reasons for taking out a personal loan, including debt consolidation, home improvement, and medical and dental bills.
You don’t have to be a member of the credit union to apply for a personal loan, but you do need to be a member to receive your credit. If you served in the military or work in qualified associations or organizations, you are qualified. If not, the easy way to join is 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 to a fellow borrower, which can help you get a lower interest rate if your fellow borrower has good credit. You can fill out the application online and receive your tariff within a few minutes.
You can get your money the next day, but it can take up to seven working days if you receive the money by check.
To contact customer support, you can send a message through PenFed’s online portal, use the chatbot, send physical mail, or Monday through Friday from 7:00 a.m. to 11:00 p.m. ET, Saturdays from 8:00 a.m. to 11:00 a.m. Calling 2:00 p.m. ET or 9:00 a.m. to 5:30 p.m. ET on Sunday.
When you’re away from your computer and need to manage your loan, PenFed has a mobile app on the Google Play and Apple stores, and the app has strong reviews.
What creditworthiness do you need?
PenFed Credit Union does not disclose their minimum creditworthiness in order to qualify for a personal loan. However, the better your credit, the more likely you are to get a loan with a low interest rate.
To get your credit report from any of the three major credit reporting agencies, use annualcreditreport.com. You can receive your report once a week for free until April 20, 2022. This report will not provide you with a credit rating, but it will provide you with information about your credit and payment history. Reviewing your credit report can help identify mistakes and where you can improve.
You can check your score for free on your credit card statement or online account. You can also purchase it from a credit bureau.
You can check your rates without affecting your creditworthiness. However, the lender will go through a tough loan application once you accept the loan offer. A hard query gives a lender a complete picture of your credit history, but it can negatively affect your credit score.
After you take out the loan, your payments (or lack thereof) will appear on your credit report. Consistent payments can help improve your credit score, while late or missing payments can hurt your score.
Is PenFed Credit Union Trustworthy?
PenFed Credit Union has an A + trustworthiness rating from the Better Business Bureau. The BBB determines its trustworthiness score by assessing a company’s response to customer complaints, truthfulness in advertising, and transparency about business practices.
PenFed has no recent public controversy.
Given the top-notch BBB score and clean history, you can decide that you want to take out a personal loan with PenFed.
Comparison of the PenFed Credit Union
Connexus Credit Union has both the highest minimum loan amount and the lowest maximum loan amount of the three credit unions – the range is between $ 2,500 and $ 25,000. You can get a loan of as little as $ 250 with the Navy Federal Credit Union or $ 600 with the PenFed Credit Union. Both credit unions can borrow up to $ 50,000.
It is more difficult to qualify for membership with Navy Federal than with PenFed or Connexus, as you are only eligible if you are an active military member or veteran and an employee or retiree of the Department of Defense. Family members in one of the above groups are also eligible.
You can join PenFed if you have served in the military or have worked for qualified associations or organizations. You can also join by opening a savings account with a minimum deposit of $ 5. You are eligible to join Connexus if you belong to certain specific groups or if you live in certain parts of Wisconsin, Minnesota, and Ohio. Otherwise, you can join the Connexus Association with a one-time donation of $ 5.
Basically, all three credit unions give you the same maximum interest rate, and none of them charge early repayment penalties.
frequently asked Questions
Is PenFed Legitimate?
Yes, PenFed Credit Union is a legitimate credit union that is federally insured by the National Credit Union Administration. It has high trustworthiness from the Better Business Bureau and offers a wide variety of financial products outside of loans.
Is It Difficult To Get A Personal Loan From A Credit Union?
Provided your credit is in good shape, getting a personal loan from a credit union is not difficult. While you may need to join the credit union in order to take out a loan – as in the case of 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 great choice for getting a personal loan – they often have quality customer service and lower credit minimums than online lenders when you just need a little cash to bridge the gap. Credit unions also have their maximum interest rate capped at 18% by the National Credit Union Administration, so you may get a better interest rate with a credit union than with an online lender.
How Much Can You Borrow From a Credit Union?
Your maximum loan amount will depend on the credit union you want to borrow from and your particular financial situation. In general, you are entitled to more money with a higher income and a higher credit score. On our list of the best personal loan credit unions, the maximum amounts range from $ 25,000 to $ 50,000.