PenFed Credit Union Review

Since its conception in 1935, Pentagon Federal Credit Union has made its mark as a reliable financial provider. The membership count has reached over 2 million, spanning all 50 states, and Guam, Puerto Rico, the District of Columbia, and Okinawa.

Good Credit Best for
3 /5
$ $600 /
Min. Amount
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    PenFed is committed to providing accessible credit services to active-duty and veteran service members.

    Though you don’t have to be in the military to be a member, they aim to provide the tools that help their members realize their dreams.

    Why Get an Installment Loan from PenFed?

    More and more consumers are finding themselves in debt, requiring personal loans, or needing funds for home improvement.

    PenFed can assist with all these needs and more. Here are a few of the key reasons why you should consider PenFed Credit Union.

    • The online application form makes it easier for you to apply for a loan. 
    • The offered APR range is between 6.49% and 17.99%, which is determined by your application and credit score. 
    • You will not incur any hidden surprises in terms of application or origination fees.

    What Does PenFed Credit Union Offer?

    PenFed Credit Union has a variety of financial solutions available to its members. These options range from checking and savings accounts to home equity loans and credit cards.

    They also offer installment loans to cover things like debt consolidation, special events, health care, or home improvement.

    Eligibility Criteria

    While PenFed Credit Union is ideal for veterans or active service members, the services are available to everyone.

    However, this does not mean that they approve every application. To qualify, you must be a US citizen or permanent resident and be 18 years or older. 

    The provider requires that you have a credit score of at least 650 to apply for an installment loan.

    Should your application be approved and decide to proceed, you must be a PenFed member to finalize the application.

    PenFed Credit Union- Pros and Cons


    • Quick and easy online application
    • Loans from as low as $600 up to $20,000
    • Competitive rates are ranging from 6.49% to 17.99%
    • No hidden application or origination fees


    • There is a slow processing time for application of up to two weeks
    • You could only receive your approved loan in the form of a check
    • While the application is accessible to anyone, you must obtain PenFed membership to accept the loan

    How to Apply for a PenFed Installment Loan?

    The application process at PenFed is reasonably simple since it’s all done online. While on the website, find your way to the personal loans page and select “Apply Now.”

    Complete the application form with information such as your social security number, date of birth, annual income, and monthly housing payments.

    PenFed often reviews applications immediately but can take up to two business days.

    To finalize your loan, you’d need to proceed with your membership application. It’s free and available to everyone.

    Rates, Terms, and Fees

    The rates at PenFed depend on your application and credit score with the standard APR between 6.49% and 17.99%.

    You should note, though, that an application doesn’t guarantee the lowest interest rate. Loans are available from $600 to $20,000 for a period of up to 60 months. 

    You will not incur any additional application or origination fees when applying for a PenFed installment loan.

    Bottom Line

    The rates are undeniably impressive on PenFed Installment loans, making it suitable for anyone to apply.

    The easy application process adds to the appeal compared to its competitors, who often have many hoops to jump through. 

    The short terms are highly attractive on these flexible loans, making them perfect for covering small emergencies.

    However, if you need to borrow more, you’d be better off applying with SoFi.