PenFed Review

ByMichael GrawJan. 31, 2021
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In a Nutshell

PenFed is a national credit union that offers auto loan rates for new and used vehicles. It also offers auto loan refinancing with rates that compete with national banks, plus a car buying service that includes discounted prices and rates. You must be a PenFed member to qualify for a loan, but the credit union is open to anyone and free to join.


  • Car buying service with discounts
  • Borrow more than the cost of your vehicle
  • Longer repayment terms available


  • Must join PenFed credit union to receive a PenFed product
  • Strict credit score requirement to receive low rates

PenFed at a Glance

Direct lender or marketplace? Direct lender
Loan types Auto loans
Loan amount $500-$100,000
Repayment terms 24-84 months
APR 1.39%-6.29%
Minimum credit score 610
Suitable for Short-term loans with low interest rates

PenFed PenFed View Rates

Suitable For?

PenFed offers auto loans with relatively low interest rates. You can buy a new car, for example, with an APR ranging from 1.39%. The lowest interest rates are reserved for borrowers with excellent credit (over 800) and 24- or 84- month loan terms. So, if you meet the above criteria you can benefit from PenFed's competitive rates and flexible loan terms.


PenFed has a car buying service through a partnership with TrueCar that gives users access to various discounts from select auto manufacturers and dealers. If you use this service, you are eligible for a discount of up to $4,000 on your vehicle. You’re also eligible for discounted interest rates for new and used vehicles. Another plus is that you can borrow up to 110% of the value of your vehicle to cover the cost of taxes and registration.

In order to get a loan, you must be a PenFed member. Membership is free for active duty military or veterans. If you have no past military service and aren’t part of a qualified organization like the American Red Cross, you can join PenFed by making a $17 contribution to the National Military Family Association.

  • Rates ranging from 1.39%-6.29% APR for new cars
  • Get cash discounts on new and used vehicles
  • Shorter loan terms have lowest interest rates
  • Membership is open to everyone
  • Borrow up to 110% of your vehicle’s cost
  • Longer loan repayment terms available

Application Process

PenFed’s auto loan application is fully online. PenFed members who have been with the organization for more than 90 days can get pre-approved through their online account. Once you submit a loan application, PenFed will typically make a decision within minutes.

Loan Types and Terms

PenFed offers standard loans for new and used vehicles, auto loan refinancing, and Payment Saver loans. Standard loans carry low interest rates and allow you to borrow anywhere from $500 to $100,000. 

Payment Saver loans have higher interest rates and require you to borrow at least $10,000. These loans come with smaller monthly payments, followed by a balloon payment at the end of the loan.

  • Minimum 610 credit score
  • $500 minimum for standard loans
  • $10,000 minimum for Payment Saver loans

Repayment Options

Standard loans carry terms of 36 to 84 months for new vehicles or 36 to 72 months for used vehicles. Payment Saver loans can be repaid over 24 to 60 months. PenFed offers lower interest rates for shorter loan terms.

How Safe Is It?

PenFed secures your loan application with SSL encryption. All borrower data that PenFed keeps and your online account portal are also encrypted for security. For added security, all PenFed data is managed and stored in the United States. 

Help & Support

PenFed’s customer support team is available by phone and email 7 days a week, including from 7am to 11pm ET Monday through Friday, 8am to 11pm ET on Saturdays, and 9am to 5:30pm ET on Sundays. 

Phone: 1-(724) 473-6333

How PenFed Compares

3.49% - 4.27%
Minimum credit score
Loan amounts
Loan term
24-84 months
12-72 months
Suitable for
Short-term loans with low interest rates
Comparing multiple lenders


7940 Jones Branch Drive

McLean, VA 22102

PenFed PenFed View Rates


PenFed offers low auto loan interest rates for borrowers with excellent credit. In addition, you can get discounts on your purchase if you use the lender’s car buying service. Anyone can join this credit union and you don’t need to be a member to get an offer.

PenFed customer testimonials

AverageReviews 18
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  • author
    Brian Harris
    a day ago
    Great company to work with

    Great company to work with. Fantastic rates with great customer service. I really enjoy my relationship with PenFed.


  • author
    Joe Rosa
    3 days ago
    It was a pleasure doing business with…

    It was a pleasure doing business with you...gain a loyalty customer and all i will bring in with me.....


  • author
    Jose R. Miranda Pacheco
    Feb 17, 2021
    Love the apk✊✊✊

    Love the apk, easy to handle to manage mi finances.


  • author
    rex gehring
    Jan 06, 2021
    recently got a 20k loan payment 469.75…

    recently got a 20k loan payment 469.75 the principal that was attributed to the principal 36.12. I thought it was a mistake. Nope they said it was totally correct. If you think of doing business with this credit union think again if you value fair trade.


  • author
    William Sloan
    Dec 28, 2020
    Best student loan rates I could find

    Better than expected rate on my student loans. After applying a couple other places I found PenFed and was shown a great rate quickly with no tricks or gimmicks. Closed my loan fast and with no fees