2021 PenFed Personal Loan Review

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Benefits explained

  • Borrow as little as $ 600 – PenFed offers personal loans for as little as $ 600, which can be hard to find with its competition. This can be a convenient option if you need a small personal loan for an immediate expense.
  • Authorized co-signer – If your credit score is far from perfect, you can trust a co-signer. This can make it easier to get a personal loan and get a lower interest rate.
  • Protection in case of financial hardship – PenFed can help you if you are having financial difficulties, such as job loss, disability, divorce or disaster. Depending on your situation, PenFed may offer you deferred payments, abstention, another repayment plan, or a loan modification.


Disadvantages Explained

  • No prequalification PenFed does not allow you to prequalify, but you can check your rates with a gentle inquiry it will not affect your credit. After checking your rates, if you decide to continue applying, you will receive a serious investigation, which temporarily lowers your credit score.
  • Must belong to PenFed Credit Union You must be a member of PenFed to benefit from any of its products. Fortunately, the credit union is now open to everyone. You can sign up by opening a savings account and making a deposit of $ 5.
  • $ 35,000 loan limit – You may be out of luck if you are looking for a larger personal loan. The limit for PenFed personal loans is $ 35,000, which is lower than that of some online lenders.


Type of personal loans offered by PenFed

PenFed offers a type of unsecured personal loan. You can use the loan proceeds for things like debt consolidation, home renovations, auto repairs and travel. However, you will have to make the payments to the creditors yourself.


Deadline for receipt of funds

Depending on the payment method, approved applicants can receive the loan funds as early as the next business day.


Characteristics of the PenFed personal loan

  • You can apply for a small personal loan of $ 600.
  • You are allowed to have a co-signer.
  • There are no origination or prepayment fees.
  • PenFed has protection in case of financial hardship.
  • Personal loans are available to PenFed members nationwide.


Apply for a PenFed personal loan

There are two ways to apply for a PenFed personal loan. You can complete an online application through its website or apply over the phone. Either way, you can check your rates online with soft credit, but they don’t consider it a prequalification. Once you submit your application, your credit will be heavily used, which will temporarily lower your credit score.

Applying online is a five-step process:

  1. You will first enter information about the loan you want, your income, as well as your personal information.
  2. In the second step, you will enter more details about your job.
  3. Then you will go through the required disclosures and notices.
  4. After that, you will choose your loan financing option.
  5. Finally, you will select your refund option.

After submitting the application, you will be asked to join PenFed Credit Union. To be eligible, you must be at least 18 years of age and be a U.S. citizen or resident alien. You can join PenFed by opening a savings account with a deposit of $ 5.

According to a representative, you may receive immediate approval over the phone or online. If PenFed needs to review the request, it may take 24-48 hours for a response. The third option is to get a denial with adverse action, which will include a letter in the mail.

If PenFed approves your request, you will receive the complete documents and the check by mail. The fastest methods to receive it are by paying for the next day shipping or by going to a branch. Otherwise, it may take a few days to arrive in normal mail.


Can I refinance a personal loan with PenFed?

If you have a personal loan from another business, you may be able to refinance and get a better rate with PenFed. However, you cannot refinance an existing PenFed personal loan with a new one.

Verdict

PenFed may be worth a visit if you have a fair credit score and you need a small personal loan. Even if you don’t qualify for the lower interest rate, the higher rate is still competitive and PenFed’s fees are reasonable. Additionally, you can apply with a co-signer if you feel that you are not approved by yourself.

It will not be a good solution if you do not want to join PenFed Credit Union, as you need to be a member in order to benefit from any of its products. You also cannot pre-qualify before submitting an application, but you can check the rates. This can be a problem for borrowers who already have less than perfect credit. Also, if you are looking to borrow more than $ 35,000, you will have to look elsewhere.

Personal loans can be a good way to consolidate high interest debt or pay for home renovations, but you should always shop around before applying. You also need to make sure that you can afford to make the monthly payments.


Methodology

Investopedia is committed to providing consumers with unbiased and comprehensive reviews of personal lenders. We’ve collected over 25 data points from over 50 lenders, including interest rates, fees, loan amounts, and repayment terms, to make sure our content helps users get it right. borrowing decision for their needs.



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