MoneyGeek’s Take: PenFed Credit Union Personal Loan Review

Pentagon Federal Credit Union, popularly known as PenFed Credit Union, is a credit union that offers unsecured personal loans to individuals with fair credit. While this lender is more popular amongst military personnel, individuals without military affiliation can apply. You will need to register to become a PenFed Credit Union member in order to receive a personal loan. There is no minimum credit score required for a PenFed Credit Union personal loan.

Last Updated: 6/24/2022
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PenFed Credit Union offers unsecured personal loans for home improvements, debt consolidation, transportation, medical and dental expenses as well as life events. Individuals looking to save money on personal loans may find that PenFed Credit Union’s low APR and lack of origination fees and prepayment fees make PenFed Credit Union the best place for a personal loan.

At a Glance: PenFed Credit Union Personal Loans


  • PenFed

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

    on PenFed Website

MoneyGeek Breakdown - PenFed Credit Union Personal Loan Details

  • APR

    PenFed Credit Union annual APR ranges from 4.99%–17.99% depending on the loan amount you take out.

  • Credit Score Requirements

    PenFed Credit Union has no minimum credit score requirement.

  • Income Requirements

    PenFed Credit Union requires borrowers to have a minimum of $25,000 gross income.

  • Loan Amounts

    PenFed Credit Union’s minimum loan amount is $600 and the maximum is $50,000.

  • Loan Terms

    PenFed Credit Union’s loan terms are up to 120 months.

  • Permitted Uses

    PenFed Credit Union loan permitted uses include home improvement, transportation, debt consolidation, medical and dental, life events and other eligible significant purchases.

  • Prohibited Uses

    PenFed Credit Union didn’t identify personal loan prohibited uses on their website. Still, most personal loan providers prohibit use for illegal activities and prohibit gambling and betting.

  • Time to Receive Funds

    PenFed Credit Union’s loan funding timeline is two days.

  • Origination Fees

    PenFed Credit Union doesn’t charge origination fees.

  • Late Fees

    PenFed Credit Union charges a $29 late payment fee per late payment.

  • Prepayment Penalty Fees

    PenFed Credit Union doesn’t charge prepayment penalty fees.

  • Co-signers and Co-applicants

    PenFed Credit Union allows you to apply for a loan with a co-borrower but doesn’t allow for a co-signer.

  • Perks

    PenFed Credit Union conducts a soft credit check that doesn’t affect your credit when you check your rate.

  • Mobile Application

    PenFed Credit Union provides a mobile app for borrowers to manage their loans.

Is PenFed Credit Union Right for You?

Different personal loan providers offer different rates and terms. Before settling on PenFed Credit Union, verify that their offers meet your personal loan needs. MoneyGeek’s PenFed Credit Union review provides you with the information you need to decide.

Who PenFed Credit Union Is Perfect For

PenFed Credit Union is perfect for borrowers who want to get a personal loan through a credit union rather than a major bank or digital lender. Borrowers with modest credit who want small loans with low APRs and minimal fees may find PenFed Credit Union appealing.

Who Should Not Choose PenFed Credit Union

For borrowers looking for personal loans over $50,000, the PenFed Credit Union may not just be for you. You may want to check for another lender that meets your requirements.

How to Apply for a PenFed Credit Union Personal Loan

Once you decide that PenFed Credit Union is the best lender for your personal loan needs, you can start with your loan application. When applying for a PenFed Credit Union personal loan, follow the procedures outlined by MoneyGeek below.

1

Prequalify

To prequalify, you will need to enter an offer code, last name and the last four digits of your social security number to get started. You will need to enter how much money you need, your preferred loan terms and the loan’s purpose. A pre-approval offer will be sent to you shortly after completing this step.

2

Fill Out Application Form

Once you have prequalified, fill out the application form and submit it once you are done. Be sure to provide accurate information during the process. Remember that you can apply for a loan without being a member, but you must become a member to get the loan.

3

Wait for Approval

Once you have submitted your application form, you will have to wait for the PenFed Credit Union team to get back to you with the next steps if your loan is approved.

4

Review Loan Agreement

When you get your loan agreement document, MoneyGeek recommends carefully reading the document’s fine print, loan terms, and other information before signing.

5

Sign Loan Agreement

Once you are satisfied with the agreement terms, sign the document and send it back to the PenFed Credit Union team. Your loan should be on its way shortly after.

6

Receive or Direct Funds

PenFed Credit Union’s fund disbursement may take up to two business days to complete.

7

Make Payments

You can make PenFed Credit Union payments via your loan dashboard accessed through PenFed Credit Union online or via the mobile app.

What to Do if You Are Rejected From PenFed Credit Union

PenFed Credit Union personal loan applications can be denied. This might be due to a poor credit score, insufficient income, not enough credit history, an incomplete application or other factors. If this happens to you, you should try to find out what factors influenced your selected lender’s choice.

If you are uncertain why you were rejected, you may contact the PenFed Credit Union team via phone or email to find out.

In addition, you can apply for a loan from other lenders if you get rejected. However, MoneyGeek advises that you resolve the denial issues before applying for another loan.

Frequently Asked Questions About PenFed Credit Union Personal Loans

The perfect loan lender for you depends on your specific personal loan needs, credit score and income. MoneyGeek answers some commonly asked questions about PenFed Credit Union personal loans to help you decide whether this credit union is the best option for you.

Read More on Personal Loans

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*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
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