PenFed Personal Loans: 2024 Review
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our Take
PenFed Credit Union offers personal loans up to $50,000 to use for almost any purpose.
Pros
- Option to pre-qualify with a soft credit check.
- Fast funding.
- No origination fee.
- Joint loan option.
- Hardship program for borrowers in need.
Cons
- Exclusive to credit union members.
- Does not clearly display loan amounts and terms on website.
- Late fee.
Lender | Est. APR | Loan amount | Min. credit score | |
|---|---|---|---|---|
2024 BEST PERSONAL LOAN OVERALL | 8.99-
29.99% | $5,000-
$100,000 | None | Visit Lenderon SoFi's website on SoFi's website Check Rateson NerdWallet on NerdWallet |
 Visit Lenderon LightStream's website on LightStream's website Check Rateson NerdWallet on NerdWallet | 6.99-
25.29% | $5,000-
$100,000 | 660 | Visit Lenderon LightStream's website on LightStream's website Check Rateson NerdWallet on NerdWallet |
7.99-
24.99% | $2,500-
$40,000 | 660 | Visit Lenderon Discover's website on Discover's website Check Rateson NerdWallet on NerdWallet | |
7.80-
35.99% | $1,000-
$50,000 | None | Visit Lenderon Upstart's website on Upstart's website Check Rateson NerdWallet on NerdWallet | |
9.99-
35.99% | $1,000-
$50,000 | 580 | Visit Lenderon Upgrade's website on Upgrade's website Check Rateson NerdWallet on NerdWallet |
Full Review
Editor’s note: PenFed did not respond to our most recent request for details regarding its personal loan product. We reviewed its website and attempted to contact company representatives, but some of the information presented here may not be recently verified. Due to the lack of verifiable information, NerdWallet did not give PenFed’s personal loan a star rating.
PenFed offers personal loans up to $50,000 to its credit union members. Though PenFed is best known for serving military members, anyone can join by opening a savings account with a minimum of $5. Unlike other credit unions, you can apply for membership as part of the loan application.
Table of Contents
PenFed personal loans at a glance
Minimum credit score | None. |
APR | 8.99% - 17.99%. |
Fees | Late fee: $29. Non-sufficient funds fee: $30. Stop payment fee for checks: $15. |
Loan amount | $2,000 to $50,000. |
Repayment terms | 2 to 5 years. |
Time to fund after approval | Borrowers can receive funds via direct deposit within one to two business days. |
Loan availability | Loans available in 50 states and Washington, D.C. |
Where PenFed personal loans stand out
Option to pre-qualify with a soft credit check: PenFed lets you pre-qualify online to see your potential annual percentage rate before formally applying. The lender uses a soft credit check during the pre-qualification process, which doesn’t affect your credit score.
Fast funding: PenFed can fund personal loans electronically in one to two business days. If you prefer a check, you’ll have to wait longer — about five to seven business days, according to the lender’s website.
» COMPARE: Fast personal loans
No origination fee: PenFed does not charge an origination fee. Other lenders may charge origination fees up to 10% of the loan amount, which is usually deducted from the loan proceeds.
Joint loan option: You can add a co-borrower with higher income or a better credit score to your loan application to help improve your chances of qualifying or getting a lower rate. Co-borrowers have access to the loan funds and share responsibility for repaying the loan.
Hardship program for borrowers in need: PenFed offers assistance to borrowers experiencing financial hardship. If you qualify, you may be able to defer payments or modify your loan. You’ll need to submit an application and provide documentation proving your financial hardship.
Where PenFed personal loans fall short
Exclusive to credit union members: While you don’t need to be a member to apply for a personal loan, you have to become a member to get funded. You need a deposit of at least $5 to establish membership with a savings account.
Does not clearly display loan amounts and terms on website: PenFed’s personal loans homepage doesn’t list the full range of loan amounts and terms available to prospective borrowers, which can be an inconvenience if you're looking to quickly compare loan options between lenders.
Late fee: PenFed charges a $29 fee if your loan payment is more than five days late.
How to use PenFed personal loans
You can use a PenFed personal loan for:
Home improvement projects.
Debt consolidation.
Emergencies.
Medical and dental bills.
Vacations.
Weddings.
Adoption and family planning.
PenFed prohibits the use of its personal loans for:
Consolidating student loans.
PenFed personal loan customer reviews
As of October 2024, PenFed has 4.1 stars on Trustpilot, a website that collects consumer reviews. Customers mention the company’s low rates and easy application process. The lender’s mobile app received 3.4 stars across more than 24,000 reviews on Google Play and 4.4 stars from over 3,000 reviews on Apple’s App Store.
Do you qualify for a PenFed personal loan?
While PenFed doesn’t share much about its specific requirements for a personal loan, its website says loan APRs are determined based on the loan term, the borrower’s credit history and the length of the borrower’s PenFed membership.
Though you don’t need to be a PenFed member to apply for a personal loan, you’ll have to become a member before you’re funded. PenFed will create your membership for you as part of the application process.
Before you apply
Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. Doing so will help you spot and fix any errors before you apply.
Calculate your monthly payments. Use a personal loan calculator to determine what APR and repayment term you’d need to get a loan with affordable monthly payments.
Make a plan to repay the loan. Review your budget to see how the loan’s monthly payments impact your cash flow. If you have to cut other expenses in order to repay the loan, it’s better to know that before you borrow.
Gather your documents. Most lenders require proof of income, which can be a W-2 or paystub, as well as proof of address and a Social Security number. Having these documents handy can speed the application process.
How to apply for a PenFed personal loan
Here are the steps to apply for a PenFed loan.
Pre-qualify on PenFed’s website. You’ll be asked to provide some information about yourself and the loan you wish to get. There’s no hard credit pull at this stage.
Preview offers and formally apply. After viewing your loan options, you can submit a formal personal loan application. This could require more documents, like W-2s, pay stubs and bank statements to confirm the information you gave during pre-qualification. PenFed will do a hard credit check when you apply, so your credit score could temporarily dip.
Make a plan to repay the loan. Making your loan payments on time is important as most reputable lenders report payment to the three major credit bureaus (Equifax, Experian and TransUnion). On-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments and keeping an eye on your budget are two ways to manage your loan payments.
Compare PenFed with other lenders
Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.
First Tech and Navy Federal are two well-rated credit unions that also offer personal loans up to $50,0000.
First Tech
» MORE: Read our review of First Tech
Minimum credit score | 660. |
APR | 8.14% - 18.00%. |
Fees | Late fee: $29. |
Loan amount | $500 to $50,000. |
Repayment terms | 6 months to 7 years. |
Time to fund after approval | Same day. |
Loan availability | Loans available in all 50 states and Washington, D.C. |
Navy Federal
» MORE: Read our review of Navy Federal
Minimum credit score | None. |
APR | 8.99% - 18.00%. |
Fees |
|
Loan amount | $250 to $50,000. |
Repayment terms | 1 to 5 years. Up to 15 years on home improvement loans. |
Time to fund after approval | Same-day funding. |
Loan availability | Loans available in 50 states and Washington, D.C. |
- Label
Ready to apply? Select "See my rates" below to compare rates for different lenders on NerdWallet.
Find the Best Personal Loan
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
