PenFed Personal Loans: 2025 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.

» MORE: Top credit unions for personal loans

Table of Contents

PenFed personal loans at a glance

Where PenFed personal loans stand out and fall short

How to use PenFed personal loans

PenFed personal loan customer reviews

Do you qualify for a PenFed personal loan?

How to apply for a PenFed personal loan

Compare PenFed to other lenders

PenFed personal loans at a glance

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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.

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How to use PenFed personal loans

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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.

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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.

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How to apply for a PenFed personal loan

Here are the steps to apply for a PenFed loan.

1. 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.

2. 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.

3. 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.

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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

Navy Federal

» MORE: Read our review of Navy Federal

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