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PenFed Review

Reviews 1,477
PenFed
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PenFed
PenFed
Excellent
Reviews 1,477
Michael Graw
Jul. 09, 2023
2 min read
Michael Graw
PenFed Summary
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.

Pros

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

Cons

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

PenFed at a glance

9.2
Editorial score

Online experience

Has learning resources, access to rates, mobile app
10.0

Customer services and support

Multiple ways of reaching lender, wide range of hours
10.0

Loan Types

Offers most loan types
10.0

Repayment Flexibility

Offers multiple repayment plans- but no special repayment programs
8.0

Eligibility (credit score)

Doesn't cover bad credit
8.0

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 5.94%. 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.

Features

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. 

TrueCar discounted rates:

New TrueCar: 5.24%

Used TrueCar: 6.49%

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 from 5.94% APR for new cars
  • Shorter loan terms have lowest interest rates
  • Membership is open to everyone
  • Loan amounts up to $150,000
  • Up to 125% financing
  • Easy online application
  • Longer loan repayment terms available (up to 84 months)
  • Get pre-approved in just a few minutes!
  • Offers easy refinancing

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 $150,000. 

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


APR 
5.94%
Varies
Minimum credit score 
610
None
Loan amounts
$500-$150,000
$5,000-$300,000
Loan term 
24-84 months
12-72 months
Suitable for 
Short-term loans with low interest rates
Comparing multiple lenders


Address

7940 Jones Branch Drive

McLean, VA 22102

PenFed  PenFed View Rates

Summary

PenFed offers low auto loan interest rates for borrowers with excellent credit. 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. 



Michael Graw
Written by
Michael Graw
Michael Graw is a Bellingham, Washington-based writer focusing on finance, tech, and science. His work has been featured in print magazines and high-impact websites. He writes for BestMoney and enjoys helping readers make sense of the options on the market.‎
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Trustpilot reviews
See what some customers are saying about PenFed
Excellent • Reviews 1,477
on
Excellent
82%
Great
5%
Average
1%
Poor
1%
Bad
10%
We upload 100 to 400 Trustpilot reviews to our website daily, displaying them by default from "best" to "worst". You have the option to adjust the sorting criteria. If you wish to see all reviews, you can visit Trustpilot's website here.
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DL
David Lail
1 hour ago
Outstanding Performance
Very easy with the process and not a bunch of ropes to jump through!
HL
Hector R Leon
3 days ago
Amazing experience with professional…
Amazing experience with professional touch. Great service
RN
Rafael Nigaglioni
1 week ago
PenFed is without question the best
PenFed is without question the best, most professional/caring and genuinely customer oriented financial institution that I have worked with in over 29 years
MH
MICHAEL U HARDER
1 week ago
INTEREST RATE COMPETATIVE
INTEREST RATE COMPETATIVE. INTERNET CONNECTIVITY.
Lynn Osborne
1 week ago
Great customer service
Easy application process and excellent customer service!
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