reviews
Hanneh BarehamWritten by
Pippin WilbersEdited by
Thomas BrockReviewed by
Updated on May 8, 2024
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At a glance
Bankrate 2024 Awards Winner: Best personal loan for borrowers with good credit
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4.7
Rating: 4.7 stars out of 5
Bankrate Score
Availability
Rating: 5 stars out of 5
5.0
Affordability
Rating: 4.8 stars out of 5
4.8
Customer Experience
Rating: 4.7 stars out of 5
4.7
Transparency
Rating: 4.2 stars out of 5
4.2
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
About Bankrate Score
Full methodology
Bankrate's Take: PenFed is a credit union serving members all across the nation. The low rates and member benefits help it stand out.
Lender Details
Loan amount
$600 to $50,000
APR from
7.99%-17.99%
Term lengths
Up to 60 months
Min Credit Score
700
PenFed is best for people with good credit who need a small loan
PenFed is Bankrate's best good credit loan for 2024, primarily due to its low fees and member benefits. Because many of PenFed's requirements aren't listed, those with good credit and a solid repayment history have the highest approval odds.
PenFed personal loan purposes
PenFed’s website doesn't specify what you can and cannot use the funds for. With amounts up to $50,000, no fees and competitive rates, these loans are well-suited for everything from large purchases and projects to debt consolidation.
However, most lenders prohibit using personal loans for investing, certain business expenses or college tuition.
The use requirements vary by institution, so read the terms and conditions carefully before accepting your offer.
Where PenFed personal loans stand out
Low fees: Unlike some lenders, PenFed doesn't charge fees on top of your interest rate. It charges no origination, application or prepayment fees.
Allows joint applications: PenFed allows applicants to apply with a joint borrower who has a higher income or credit score. This can increase your chance of getting approved and scoring a lower interest rate.
Fast disbursem*nt: Depending on the time of day that your loan is processed, you could receive your funds as early as the next business day if you choose direct deposit. If you opt to receive your funds by check, it'll take anywhere from five to seven business days. However, PenFed notes that the actual timing may be longer or shorter depending on your financial institution and exactly when the loan is processed.
Where PenFed personal loans fall short
Limited eligibility information: The website's eligibility information is sparse, leaving out requirements like minimum income and debt requirements. That said, you can prequalify without hurting your credit score, so it’s still relatively easy to see your eligibility.
Membership required: PenFed requires personal loan applicants to be credit union members. Membership is open to everyone, but you will need to apply. Plus, if you're approved for membership, you'll need to maintain a PenFed checking account by depositing a $5 minimum amount.
Middling maximum amount: PenFed's maximum loan amount of $50,000 is average compared to other companies on the market. Many offer borrowing amounts of up to $100,000.
PenFed customer experience
Customer Support
PenFed stands out from the rest for its support options. Members can contact a customer service representative by calling 800-247-5626 Monday through Saturday from 8 a.m. to 8 p.m. ET.
You can also get in contact with the credit union through its secure online messaging platform. Borrowers can also receive support through the company's 24/7 help center, either by typing a message for the next available agent or by viewing the frequently asked questions page.
It offers a toll-free teletypewriter (TTY) option for the hearing impaired at 1-800-225-6378. Customers in Eugene, Oregon can use the TTY feature at 541-225-6801.
Digital Experience
Along with a fully online prequalification and application experience, PenFed’s website features a learning hub that hosts a number of resources and tools. The hub offers financial advice, customer support and information about hardship options.
PenFed also offers a free mobile app — PenFed Mobile. Both Android and Apple users can download the app. However, its ratings are lower than other companies' mobile apps. It's rated 3.1 stars out of 5 on the App Store and 3.5 stars out of 5 on the Google Play store, with most of the negative reviews reporting frequent app outages and crashes.
What people are saying about PenFed
PenFed reviews from customers are largely positive, with most negative reviews concerning the underwriting and approval process. It has 1,483 reviews on Trustpilot; 82 percent are 5-star ratings and 10 percent are 1-star. Unlike some competitors, PenFed hasn't responded to its negative remarks on the site.
The Better Business Bureau gives it an A+ rating, but the average score out of 286 customer reviews comes out to a low 1.17 out of 5 stars. However, among the negatives are a few positive remarks sprinkled in. "The representative I spoke to was very courteous, professional and knowledgeable… Everything was excellent" reads an April 2024 review.
How this lender compares
Rating: 4.7 stars out of 5 4.7 Bankrate Score
APR from
7.99%-17.99%
Loan Amount
$600 to $50,000
Term Length
Up to 60 months
Min Credit Score
700
on Bankrate
Rating: 4.7 stars out of 5 4.7 Bankrate Score
APR from
8.99% to 29.49%* with autopay
Loan Amount
$5,000–$100,000
Term Length
24 to 84 months
Min Credit Score
680
on Bankrate
Rating: 4.7 stars out of 5 4.7 Bankrate Score
APR from
7.49%-25.49% *with AutoPay
Loan Amount
$5,000-$100,000
Term Length
24 to 84 months
Min Credit Score
695
on Bankrate
PenFed vs. LightStream
PenFed and LightStream are strong contenders for those with excellent credit. They offer similar APR ranges, although PenFed comes out ahead of LightStream's maximum APR of 24.29 percent. Plus, borrowers should consider prequalifying with PenFed first — LightStream doesn't offer the same benefit.
Read our full PenFed vs. LightStream guide
PenFed vs. SoFi
PenFed and SoFi both offer competitive personal loan interest rates for borrowers in good financial shape. But SoFi stands out among the rest due to its protections and benefits. Even so, those who are already members of PenFed may want to consider borrowing within the credit union, as they'll gain access to exclusive member benefits.
Read our full PenFed vs. SoFi guide
Do you qualify for a PenFed personal loan?
The credit union's eligibility qualifications aren't listed on its website, but personal loan lenders and credit unions generally require the following.
- Good to excellent credit score: Those with higher scores will be offered the most favorable rates.
- Strong credit history: Those with a thin or less-than-stellar credit history may need to enlist the help of a co-borrower to get approved.
- Low debt-to-income (DTI) ratio: Your DTI ratio is determined by dividing your total debts by your gross monthly income. Lenders typically favor those who have a DTI no greater than 36 percent.
How to apply for a personal loan with PenFed
You can apply for a PenFed personal loan before becoming a member, but you must become a member to view your terms. The application process can be completed online or in person at one of its brick-and-mortar locations.
1. Get a quote
Before applying, have your employment and annual income documentation on hand, as well as an official government ID, to ensure a smooth and easy process. Click on the green "Check your rate" button. If you're already a member you can choose to log in and if you're not yet a member, PenFed will create your membership alongside your loan application.
2. Add information and finalize your application
Follow the application prompts. Be prepared to upload personal documentation and state the reason for your application, as well as basic details like your requested loan amount and term.
Keep an eye out for any information from PenFed regarding your status and download the mobile app to track your application status.
3. Review the loan details
Make sure you understand the interest rate, what your monthly payment will be and total loan costs. Also, watch out for any potential fees, such as late payment charges.
If everything looks good, accept the loan and follow the instructions. Depending on the disbursal method, you could receive the funds in as little as one to two business days.
How to apply for a personal loan with PenFed
You can apply for a PenFed personal loan before becoming a member, but you must become a member to view your terms. The application process can be completed online or in person at one of its brick-and-mortar locations.
Before applying, have your employment and annual income documentation on hand, as well as an official government ID, to ensure a smooth and easy process.
- Go to the "Personal Loans" tab in the "Loans" section.
- Click on the green "Check your rate" button. If you're already a member you can choose to log in and if you're not yet a member, PenFed will create your membership alongside your loan application.
- Follow the application prompts. Be prepared to upload personal documentation and state the reason for your application, as well as basic details like your requested loan amount and term.
- Keep an eye out for any information from PenFed regarding your status and download the mobile app to track your application status.
- Depending on the disbursal method you choose, you could receive the funds in as little as one to two business days.
Should your application time out, you can pick up where you left off later through a one-time verification code that will be sent to you via text message.
Features and additional perks
There are a few perks that come with borrowing from PenFed. For one, prospective borrowers can choose to prequalify, which lets them see what rates they qualify for without a hard credit check.
The credit union also offers a financial hardship assistance program for those who have experienced temporary or permanent hardship, like loss of income or employment. Among other benefits, PenFed offers relief-based modified loan details, alternative repayment options and a forbearance plan.
After applying for financial assistance, borrowers will be matched with a Loss Mitigation Analyst. The analyst comes at no extra cost and works with the borrower to determine the best repayment route.
How Bankrate rates PenFed
Overall Score | 4.7 | Explanation |
---|---|---|
Availability | 5.0 | Same-day funding and a low minimum loan amount earn PenFed a high score. |
Affordability | 4.8 | Two fees — late and returned payment — reduce PenFed's score, but not by much. |
Customer Experience | 4.7 | Assistance seven days a week, a website and a mobile app make for a top-tier score. |
Transparency | 4.2 | PenFed doesn't clearly list its credit requirements on its site, but it does offer prequalification. |
Methodology
Bankrate's trusted personal loans industry expertise
Read our full methodology
57
years in business
30
lenders reviewed
20
loan features weighed
665
data points collected
Bankrate considers 20 factors when reviewing lenders. Credit requirements, APR ranges, fees, loan amounts and flexibility are all taken into account so that ratings are representative of how competitive lenders are for a wide range of credit profiles and budgets. The Bankrate Score for personal loans consists of four categories:
- Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
- Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
- Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
- Transparency: This category is measured by how accessible credit requirements, rates and fees are on the lender's page. We also considered whether prequalification was available, as all these factors are key for consumers to make an informed decision.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
On This Page
On This Page
- At a glance
- Where PenFed personal loans stand out
- Where PenFed personal loans fall short
- PenFed customer experience
- How this lender compares
- Do you qualify?
- How to apply
- Our rating
- Methodology
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