PenFed Credit Union Personal Loan Full Review
Get away from the high rates, the hidden fees of major banks and still get a $50,000 unsecured loan!
Are you tired of the major banks’ fees and hidden penalties? Are you looking for a soft and reliable credit union? Then your search is over!
Meet PenFed, a credit union that has banished its own fees and can still give you a $50,000 loan with 7.74% APR interest rates.
As one of the biggest credit unions in the country, PenFed offers a simple membership approval process, several financial services, and the loan you have been looking for.
Who is the Pentagon Federal Credit Union?
Well known as PenFed, the credit union was founded in 1935 in Washington, D.C., and was created to provide easier credit access to members related to several national defense forces.
Over the decades, the FCU has grown and is now the third-largest federal credit union, with assets of $25 billion and more than 1.8 million members.
Currently, PenFed offers a wide range of financial products and services, including checking and savings accounts, credit cards, mortgages, and personal loans.
Over the last few years, PenFed has loosened its eligibility requirements and is accepting members from all across the United States.
And the best of all, as of today, you don’t have to be related to a national force anymore.
How PenFed Personal Loan works?
PenFed’s personal loan has become a flexible and affordable borrowing option that can be used for a variety of purposes, such as debt consolidation, home improvements, or to cover unexpected expenses.
With PenFed, your personal loan can get as high as $50,000, and the best of all, it is an unsecured loan, meaning you don’t have to provide any kind of collateral.
Still, even with an unsecured loan, PenFed offers competitive interest rates that range from 7.74% to 17.99% APR, with repayment terms ranging from 6 to 60 months.
As with most credit unions in the United States, in order to request a PenFed personal loan, you must be a member of a credit union.
But you have no reason to worry. Since 2018, PenFed has been accepting anyone nationwide to join in. You should join the union by making a simple $5 deposit to one of its shared accounts.
Created to provide easier credit access to Washington, D.C population and the U.S. military and defense personal, PenFed loans comes with several benefits.
They begin with the lack of some fees that have become quite popular among major banks and financial institutions.
Within PenFed, you will not pay any kind of application or origination fees in order to get your loan approval.
And if you decide to pay off your loan before its term ends, you will also not pay any kind of prepayment penalties or fees.
PenFed also provides interest rate discounts for members, which can result in even lower interest rates and fees.
Other advantages of the PenFed personal loans include:
- Multiple-use funds
- Fast approval process
- Online account management
- Flexible repayment terms
Lastly, Penfed is known for its excellent customer service, with friendly and knowledgeable representatives available to answer any questions and provide assistance throughout the loan process.
Are there any cons?
While PenFed offers many advantages within its membership and personal loans, some details about the credit union’s policies deserve special attention.
One of the major drawbacks of PenFed comes for those with a less-than-perfect credit history, since the FCU will rely almost 100% on your credit when making a loan.
So, borrowers with lower credit scores may end up paying higher interest rates over the life of the loan.
While the FCU does not charge any kind of origination fee, they do charge for late payments.
How do I apply?
If you get interested, tap on the green button and check out the step-by-step guide on how to apply for PenFed’s personal loans. You will also get a list of PenFed’s major membership criteria.