PenFed Credit Union 2026 Personal Loan Review
PenFed offers low rates and a wide range of loan amounts to its credit union members.
- Want low rates.
- Want a joint loan with a co-borrower.
- Aren’t a PedFed member and don’t want to join.
- Need a loan term longer than five years.
What to know about PenFed personal loans
PenFed is a solid option for borrowing money if you’re a member of the credit union. Low rates and no origination fees help you save money. A wide range of loan amounts make this lender suitable for small or large borrowing needs.
But even if you aren’t a PenFed Credit Union member, I’d still recommend you consider this lender. Like most credit unions, you must be a member in order to get a loan, but PenFed membership isn’t restricted to people who work for a specific company or live in a specific state. You can join just by opening an account with a minimum deposit of $5.
While PenFed doesn’t disclose a minimum credit score requirement, it offers the option of getting a joint loan with a co-borrower, which can boost your application if your credit score is low. (Your co-borrower must also be a PenFed member.)
PenFed doesn’t let you add a co-signer or secure your loan with collateral, which are two other options to strengthen a loan application if you have bad credit.
If you need a loan as soon as possible, PenFed may not be your best choice. Many lenders provide an instant response to loan applications, but you may have to wait a day or more to find out if your PenFed loan application is approved. If you’re approved, PenFed has next-day funding, though it could take a couple of additional days before the money is disbursed.
» MORE: Compare the best personal loans
What we like most about PenFed
- Low rates: PenFed’s annual percentage rates range from 6.09% (with an autopay discount) to 17.99%. Both the starting rate and maximum rate are lower than many of the other lenders we review. (Federally-chartered credit unions like PenFed must cap their rates at 18%.) The lower a loan’s APR, the less you’ll pay in interest.
- No origination fee: Many lenders charge an origination fee (typically up to 10% of the loan amount), which is often deducted from the loan before the money is sent to your account. Getting a loan from PenFed means you can avoid that fee, and you’ll get the full loan amount you were approved for.
- Wide range of loan amounts: You can get loans ranging from $600 to $50,000, which can cover a great variety of borrowing needs. Most lenders we review offer loans starting at $1,000 or more.
- Direct pay to creditors: If you’re using the loan to consolidate debt, PenFed can send the loan funds directly to your creditors. This helps you streamline the debt consolidation process. Funding could take up to three days, so continue making payments on your current debt until you see that those balances have been paid off.
» MORE: Learn how credit union loans work
Why PenFed may not be right for you
- You must have a credit union membership: In order to get a personal loan from this lender, you need to have a PenFed Credit Union membership. If you’re not already a member, you can join by opening an account with a $5 minimum balance. Residents of all states are eligible to join.
- Limited flexibility with your monthly payment date: You aren’t able to select your first monthly payment due date, and you can only change the monthly payment date once throughout the life of the loan. Several other lenders let you adjust the monthly payment date more frequently.
- You can’t get a loan term over five years: While maximum terms of five years is common among personal loan lenders, some offer six- and seven-year terms. The longer terms can help lower your monthly payments on large loans, but they also mean you’ll pay more in total interest.
How much does a PenFed personal loan cost?
The total cost of your PenFed loan depends on the amount borrowed, annual percentage rate and loan term. The lender told NerdWallet its average borrower typically gets a loan between $10,000 and $20,000 but did not share what rates the average borrower gets. Here is an example of how different rates affect the costs of a $15,000 loan with a 3-year term.
APR | 10%. | 15%. |
Monthly payment | $484. | $520. |
Total interest cost | $2,424. | $3,719. |
Total loan cost | $17,424. | $18,719. |
» MORE: Use our personal loan calculator to estimate your costs
Do you qualify for a PenFed personal loan?
We asked PenFed about its requirements to qualify for a personal loan, but it opted not to share many details. The lender just told us that you have to be a PenFed member and that it reviews your creditworthiness and history with the credit union when you apply.
Loans are available in all states plus Washington, D.C., and Puerto Rico. You can pre-qualify for a personal loan to check your rate and other loan terms. Pre-qualifying involves a soft credit check, which doesn’t impact your credit score.
» MORE: How to get a personal loan
Frequently asked questions
Q: What can I use a PenFed personal loan for?
A: You can use a PenFed personal loan for almost anything, including debt consolidation, home improvement projects, medical expenses, emergencies, weddings, traveling and more. The only things you can’t use a PenFed loan for are gambling and illegal activities.
Q: Does PenFed offer any rate discounts?
A: Yes, you could reduce your loan’s APR by 0.25 percentage points if you enroll in automatic monthly payments.
Q: Does PenFed have a mobile app to manage payments?
A: Yes, and you can also view your credit score for free on PenFed’s app.
Q: Does PenFed report payments to the major credit bureaus?
A: Yes, PenFed reports loan payments to Experian, Equifax and TransUnion. A history of on-time payments can positively impact your credit score, while missed payments can cause your score to go down.
How does PenFed compare?
 |  |  |  |  |
|---|---|---|---|---|
Est. APRFrom 6.09% to 17.99% | Est. APRFrom 6.99% to 35.49% | Est. APRFrom 5.96% to 35.99% | Est. APRFrom 7.24% to 24.89% | Est. APRFrom 7.74% to 35.99% |
Loan amountFrom $600 to $50,000 | Loan amountFrom $5,000 to $100,000 | Loan amountFrom $1,000 to $75,000 | Loan amountFrom $5,000 to $100,000 | Loan amountFrom $1,000 to $75,000 |
Min. credit scoreNaN | Min. credit scoreNaN | Min. credit score600 | Min. credit score660 | Min. credit score600 |
How we rated this lender
NerdWallet’s editorial team rates lenders using a rubric with five weighted categories and 29 subcategories. Here are the factors we prioritized, plus why this lender received each score.
PenFed loans have relatively low rates and no origination fees. The lender also offers the opportunity to get a small rate discount.
Our Method: We review lenders’ rates and fees, plus any opportunities for rate discounts.
Customer support representatives are available six days a week, and the lender lets you manage loan payments via a mobile app. Two drawbacks are the lack of hardship accommodations and the fact that borrowers cannot select their initial payment date.
Our Method: We look at factors such as customer service availability, monthly payment flexibility and whether the lender reports on-time payments to major credit bureaus.
PenFed offers a wide variety of loan amounts and will send your loan funds directly to your other creditors to consolidate your debt. However, you aren’t able to apply with a co-signer or secure a loan with collateral.
Our Method: We assess loan amount and term ranges and whether lenders offer multiple loan types or direct payment to creditors on debt consolidation loans.
PenFed loans are available nationwide, and you can pre-qualify with a soft credit check. But you can’t get a PenFed loan unless you’re a member of the credit union.
Our Method: We consider how widely available and accessible the loans are and how lenders review applicants’ credit.
If you pre-qualify, PenFed shares a bunch of information about the loan you may get. Yet its website does not clearly display its minimum loan amount or repayment term.
Our Method: We evaluate loan approval and funding times and the lender’s transparency throughout the application process.
Read more about our ratings methodologies for personal loans.
Learn more about personal loans
