Item: PenFed Credit Union Personal Loan
Rating: 4.5
Author: Robin Hartill, CFP®

4.5

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4.5

NerdWallet Rating

Est. APR

7.99 - 17.99%

Min. credit score

None

Time to fund

1 day

Loan amount

$600 - $50K

Loan term

1 to 5 years

Disclosures from PenFed Credit Union Personal Loan

Overview

PenFed Credit Union is a federally insured credit union that anyone can join. It has a wide range of personal loan amounts, and loans can be used for most purposes. The credit union also charges no fees for its personal loans.

However, the lender says borrowers may need excellent credit to qualify, and it doesn’t offer the options to add a co-signer or secure a loan with collateral.

» COMPARE: Top personal loan lenders and rates

Detailed breakdown

Affordability

(25%)

4.5/5

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

(20%)

4.5/5

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

(20%)

4/5

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

(20%)

4.5/5

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

(15%)

5/5

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

Overall

4.5/5

Read more about our ratings methodology for personal loans.

Where PenFed personal loans stand out

Wide range of loan amounts. PenFed offers personal loans ranging from $600 to $50,000. This is a wide range of loan amounts, which could make PenFed loans a good option for anything from a small emergency expense to debt consolidation or a major expense.
No fees. PenFed doesn’t charge an origination fee or any other fees. Some lenders charge origination fees as high as 10% that usually gets deducted from the loan amount, plus late fees and non-sufficient funds fees.
Pre-qualify with a soft credit check. PenFed lets members pre-qualify for a personal loan with a soft credit check, which won’t hurt your credit score. Borrowers can see their potential loan amount, rate, terms and monthly payments, and view multiple loan offers, when they pre-qualify.
Fast funding. PenFed usually offers same-day or next-day funding for loans. Some lenders take up to a week to disburse loan funds.
Direct payment to creditors available. Borrowers who take out a debt consolidation loan through PenFed can choose to have the funds sent directly to creditors. This option can simplify repayment and remove the temptation to spend loan funds instead of using them for debt payoff.

Where PenFed personal loans fall short

No secured personal loan option. PenFed doesn’t offer secured personal loans, which allow borrowers to use an asset like a vehicle or savings account as collateral. Secured personal loans often allow borrowers to qualify for lower rates or larger loans.
No option to add co-signer. Unlike some lenders, PenFed doesn’t give you the option to add a loan co-signer to your application. A co-signer can help you qualify for a loan or terms you may not qualify for based on your own creditworthiness. However, PenFed does allow joint personal loans, where two or more co-borrowers have access to loan funds and share responsibility for repayment.
Limited ability to choose payment date. PenFed doesn’t allow borrowers to choose their payment date. However, the lender does allow you to change the due date once during the life of the loan after you’ve made your first payment. Choosing when your payment is due can be helpful with budgeting if you want to sync due dates with your payday or spread out monthly bills.

How to qualify

PenFed doesn’t list credit or income requirements for a personal loan on its website. However, the lender says it works with borrowers who have excellent credit, typically defined as a credit score in the upper 700s or higher.

You don’t need to be a PenFed member to apply for a personal loan. If you decide to accept a loan offer, you’ll need to join before your funds are disbursed.

PenFed lets you pre-qualify for a personal loan with a soft credit check. If you formally apply for a loan, the lender will perform a hard credit check, which can lower your credit score by a few points.

The lender’s website says it evaluates creditworthiness using your credit history and the length of your PenFed membership.

» MORE: How to get a personal loan

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Compare PenFed to the best 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.

4.5	4.5	5.0	5.0
EST. APR 7.99% - 17.99%	EST. APR 8.74% - 35.49%	EST. APR 7.9% - 35.99%	EST. APR 7.74% - 35.99%
LOAN AMOUNT $600 - $50K	LOAN AMOUNT $5K - $100K	LOAN AMOUNT $1K - $60K	LOAN AMOUNT $1K - $50K
MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE 600 Check Rates	MIN. CREDIT SCORE 600 Check Rates

PenFed Personal Loans: 2025 Review

Overview

Detailed breakdown

Where PenFed personal loans stand out

Where PenFed personal loans fall short

How to qualify

Compare PenFed to the best lenders