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.
|Guide||PenFed Credit Union Review|
|Features||Multiple loan options and more|
|Minimum credit score||Not disclosed|
|Downpayment cost||0% to $3%|
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.
- Vast variety of services
- Extended term upto 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:
If you are looking for mortgage options, then PenFed offers the following options to choose from;
VA Loans require no or 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.
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.
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 certificate ranging from six months to seven years.
These certificates are also available for coverdall education saving accounts for college and individual retirement accounts (IRAs) with a minimum deposit of $500.
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
- Financial advisors
- Refinance mortgages
- Auto loans
Pros And Cons
- Earn interest on checking account.
- Access to more than 85000 ATM’s.
- No origination fees.
- Extended terms upto 60 years.
- No information on qalification requirment.
- $1,000 minimum on share certificates is high.
What Can PenFed Persoal Loan be Used For?
PenFed offers loan 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.
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.
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.
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 being 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 one can afford them.
Better Vs. PenFed
Better is a good digital alternative to PenFed. Its loan program offers some really low-interest rates and closing costs.
Also, if another lender offers a low rate of interest to you, then they offer a price guarantee.
The only thing that we dislike about better is that they charge an application fee, underwriting fee, origination fee, etc., which is not the case with PenFed.
PenFed Vs. AmeriSave Mortgage
When it comes to transparency and simplicity, AmeriSave is our top choice.
Apart from this, they do not have any hidden costs and offer different kinds of loans such as FHA, VA, cash-out, USDA, and adjustable mortgage rates with a downpayment of as low as 3%.
If you want to know more about AmeriSave, then you can read our detailed review by scrolling through our website.
Nationwide Home Loans Vs. PenFed
With Nationwide Home Loans, you get lots of options for buying your dream house with low-interest rates.
You can also choose to customize your home loan with them and pay the installment accordingly.
The only thing is that Nationwide Home Loans is only limited to home loans, whereas PenFed covers a whole lot of options.
If you wish to know more about Nationwide Home Loans, then you can have a look at our review by clicking on the link below.
As for the final word, we would say that PenFed is a good option to choose from.
Its wide variety of options and competitive rate of interest and fees make it an appealing option to choose.
As long as you do not feel the need to go to a bank physically, this option seems best.
What minimim Credit Score Do I Need?
PenFed has not specifed the minimum credit score require,emt yet. We suggest you speak with them directly to know the same.
What is the minimum downpayment amount for VA loan?
The mininum downpayment amount is 3.5% for a VA loan.