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PenFed Personal Loans: 2025 Review

Last updated on October 7, 2024
Annie Millerbernd
Written by 
Assistant Assigning Editor
Kim Lowe
Edited by 
Head of Content, Personal & Student Loans
Fact Checked
Annie Millerbernd
Written by 
Assistant Assigning Editor
Kim Lowe
Edited by 
Head of Content, Personal & Student Loans
Fact Checked

Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.

Our Take

The Nerdy headline:

PenFed Credit Union offers personal loans up to $50,000 to use for almost any purpose.

Jump to:Full Review
PenFed Credit Union Personal Loan
PenFed Credit Union Personal Loan
Est. APR
8.99-17.99%
Loan amount
$2,000 - $50,000
Min. credit score
None
on NerdWallet

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.
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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.

» 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

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.

^ Back to table of contents

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.

^ Back to table of contents

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.

^ Back to table of contents

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.

^ Back to table of contents

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

  • 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.

^ Back to table of contents

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.

^ Back to table of contents

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

  • Late fee: $29.

  • Returned payment fee: $29.

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.

^ Back to table of contents

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Find the Best Personal Loan

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How we chose the best personal loans

Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.

35+

Lenders reviewed

We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.

25+

Categories assessed

Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.

70+

Data points analyzed

Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.

Star rating categories

We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
Affordability

25%

We review lenders’ annual percentage rate offerings at least twice per year 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%

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%

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%

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%

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.

5.0

Overall score

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 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.
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