If you are looking for a financial institution that can cover all your financial needs, be it student loan, personal loan, account opening, savings account, obtaining a credit card, and more, with a competitive rate of interest and minimal fee, then you are on the right page.
In this PenFed Credit union review, we will give you all the essential details that you must know in order to decide whether it is a good choice for you or not.
Summary
| Guide | PenFed Credit Union Review |
|---|---|
| Features | Multiple loan options and more |
| Founded | 1935 |
| Minimum credit score | Not disclosed |
| Downpayment cost | 0% to $3% |
| Rating | 4\5 |
| Website | Click here |
Key Takeaways
- PenFed offers not only loans but also other services like Checking accounts, Money Market Saving Accounts, Credit Cards, and many more.
- It offers extended terms up to 60 years and charges no origination fees.
- You can borrow a loan from PenFed and use it to deal with travel and vacation expenses, Home renovations and repairs, debt consolidation, and more.
- It has a rating of 4.6/5 stars on Trustpilot.
What Is PenFed Credit Union?
Pentagon Federal Credit Union, AKA PenFed, is a financial institution regulated under the authority of the National Credit Union Administration, offering a variety of services, including personal loans, student loans, car loans, deposits, credit cards, etc.
There are almost 2.5 million members who are a part of PenFed, having more than 30 billion assets.
Let us have a look at all services PenFed offers and what you can expect from it.
Read: Rocket Mortgage Review
Also Read: Credit Counselling
Features
- A vast variety of services
- Extended-term up to sixty months
- Get funds in a minimum of two to three days
Products & Services Offered
There are so many services that PenFed offers. Let’s have a look at them one by one:
Mortgage
If you are looking for mortgage options, then PenFed offers the following options to choose from;
VA Loans require a low downpayment, do not charge a prepayment penalty, and also do not require Private Mortgage Insurance.
You can also choose Jumbo Loans, FHA Loan with a downpayment of 3.5%, ARM, and Conventional Fixed.
Checking Account
You can open a checking account for as low as $25, and it does not require any minimum balance.
You can also avoid paying $10 by maintaining a daily balance of $500 or by monthly direct deposits of $500 or more.
Also, you also get 0.15% APY on a daily balance of less than $20,000 and earn 0.35% on daily balances of $20,000 to $50,000.
Money Market Saving Accounts
The money market-saving account lets you earn a higher rate of dividend depending on the amount you deposit.
Opening a money market-saving account requires zero monthly service fee and a $25 opening account deposit.
Savings Account
You can open a savings account with PenFed for $5, and if you do not have to pay anything with electronic statements and $2 per month for a paper statement.
Premium Savings Account
And if you choose their premium saving accounts, you will get a dividend on them. Opening a premium account also requires a $5 minimum.
Money Market Certificate
PenFed uses the term Money Market Certificate for a certificate of deposit.
PenFed requires a minimum of $1000 to open an account, and they offer money market certificates ranging from six months to seven years.
These certificates are also available for overall education saving accounts for college and individual retirement accounts (IRAs) with a minimum deposit of $500.
Credit Cards
PenFed offers four kinds of credit card options, including Gold cards, Platinum Rewards, and Power Cash Rewards, that charge zero annual fees.
And lastly, the PenFed Pathfinder rewards charge a $95 annual fee.
Other Products Offered
Apart from the products mentioned above, PenFed also offers the following products and services.
- Purchase mortgages
- Home Equity Lines of Credit (HELOCs)
- Student loan refinancing
- Personal loans
- Personal lines of credit
- Student loans
- IRAs
- Financial advisors
- Refinance mortgages
- Auto loans
- Insurance
PenFed Credit Union’s Power Buyer™ Solutions
Pros And Cons
Pros
- Earn interest on checking account.
- Access to more than 85000 ATMs.
- No origination fees.
- Extended terms up to 60 years.
Cons
- No information on qualification requirements.
- $1,000 minimum on share certificates is high.
Read Detailed Article How Do We Review A Mortgage Refinance Company?
What Can PenFed Personal Loan be Used For?
PenFed offers loans for a variety of uses including the following:
- Home renovations and repairs.
- Travel and vacation expenses.
- Debt consolidation.
- Car repairs.
How To Apply For Loans?
You may apply for a personal loan by logging into your account online for existing customers or by creating an account on their website and completing the application process for new customers.
It is compulsory to create an account and finish the application process if you want to apply for loans on PenFed.
How To Get Started?
You can get started with PenFed Credit Union in these quick and easy steps:
1) Go to their website, and click on “Join now” appearing at the top right corner.
2) Now click on become a member today.
3) Now fill in all your information to open your account.
PenFed Mobile Deposit Tutorial
What is the Loans Fees and Terms and Conditions?
With PenFed Credit Union, you can get a personal loan from $600 to $50,000 with a term life of up to 60 months.
The interest rate could be as low as 4.99%, and the individual rate is determined on the basis of your profile and creditworthiness.
PenFed does not charge any penalty fee, an application fee, or origination fee, and you are required to pay a minimum of $50 monthly payment if you take a loan.
Customer Service
You can get in touch with PenFed customer service by calling them on (1-800-247-5626) from Monday to Friday from 7 am-11 pm EST.
And on Saturdays and Sundays, you can call them on the same number from 9 am-5:30 pm. You can also get in touch with them via chat by using their mobile app.
NPC Penfed Credit Union Ratings
| Type | Rating |
| Customer Service | 4.2/5 |
| Responsive | 4.3/5 |
| Affordable | 4.3/5 |
| Quality of service | 4.8/5 |
| Ease of use | 4.6/5 |
Customer Ratings And Reviews
Out of 837 customer reviews on Trustpilot, PenFed has an average rating of 4.6, which is really good.
Out of the 837 reviews, 84% of people gave PenFed a five-star rating, and 8% gave them a one-star rating.
Hear it From Reddit Users
PenFed Credit Union
by u/Toolooloo in personalfinance
Our Experience
We contacted PenFed to gain insight on their student loan, and they explained to us that they charge a 3.49% APR on student loans.
You can also refinance your parent’s student loan or private loan into a single PenFed loan.
They told us that applying for a student loan is very easy, and they also do not impose any prepayment penalties or any other unnecessary fees.
Overall, our query was answered sufficiently, and we think opting for a student loan from PenFed isn’t that bad.
What Differentiates it?
There are a few differentiating factors that make PenFed stands out. One of them is its wide variety of loan and finance offerings.
Penfed is a one-stop platform for getting home loans, personal loans, student loans, car loans, credit cards, and whatnot.
Even when we talk about the charges and interest rates, we feel it is certainly reasonable, and anyone can afford them.
Comparison
| Guide | PenFed Credit Union | Better |
|---|---|---|
| Founded | 1935 | 2014 |
| Features | Multiple loan options and more | Online process, customized loan options, and more |
| Minimum credit score | Not disclosed | 620 or above |
| Downpayment cost | 0% to $3% | 3% |
| Fees | $50 | No fees |
| Rating | 4\5 | 4.5\5 |
| BBB Rating | Not accredited | B |
Also Read Better Review
Final Verdict
PenFed is a financial institution offering a variety of services apart from just mortgage help. This means that they are not concentrated on just one thing, and those looking for solely mortgage help might find them a bit distracted-of-sorts.
Hence, if you are looking for a company that is focused on providing only mortgage help and is equally good.
Then you should go for Rocket Mortgage, our top-rated company. Rocket requires a minimum credit score of 580, and Penfed has not disclosed its requirement.
The downpayment cost for both is 0-3%. Also, Rocket has a payout limit of 2-2.5 million, while PenFed lacks transparency even here.
So if you want only the best company’s service, Rocket Mortgage should be your choice.
FAQ’s
What minimim credit score do I need?
PenFed has not specified the minimum credit score requirement yet. We suggest you speak with them directly to know the same.
What is the minimum downpayment amount for VA loan?
The minimum downpayment amount is 3.5% for a VA loan.
Is PenFed Credit Union Legit?
Yes, Penfed is legit. It has a very high rating on Trustpilot and is trusted by a lot of users.
Where Is PenFed Credit Union Available?
PenFed Credit Union is available in 50 states.
What is the maximum amount of money that I can borrow from PenFed?
You can get a loan of up to $50,000 with PenFed.
Shefali Jain is a Content Editor & Writer at National Planning Cycles.
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes.