PenFed Credit Union Review: Is It A Scam Or An Honest Review of It’s Legitimacy

PenFed Credit Union offers its members a wide range of financial services including competitively-priced certificates, checking and credit cards, personal loans, mortgages, and auto loans. They advertise their services at penfed.org.

3.0 out of 5.0 stars3.0

PenFed Credit Union Summary

PenFed Credit Union is a leading provider of personal loans. In this article, we take a closer look at PenFed so that you can make an informed decision about whether or not this credit union is right for you.

As a result of our investigation into their website and terms and conditions, we uncovered some interesting facts.

Here are just a few of the things that caught our attention.

• Personal Loan rates range from 7.74% to 17.99% APR.
• Loans range from $600 to $50,000.
• All loans are subject to a minimum monthly payment of $50.
• It offers terms of up to 60 months.
• At the time of disbursement, they will evaluate various factors to determine your APR. This includes a review of credit history and length of PenFed membership.
• PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. 

What is PenFed Credit Union?

Pentagon Federal Credit Union, or PenFed, is a credit union that was founded in 1935. It is the second-largest federal credit union in America, with over 2.8 million members worldwide and assets of $36.6 billion as of June 30, 2022.

PenFed Credit Union has a long history of providing financial services. They have an A+ rating from the BBB and an average of 200 customer reviews. However, they have had 541 complaints closed in the last 3 years and 242 in the last 12 months. This gives them a 1-star out of 5-star rating.

PenFed is headquartered in McLean, VA. You can reach the company at (800) 247-5626 for any questions or concerns you may have.

How does PenFed Credit Union work?

The process of getting a personal loan is simple. First, check your rate without impacting your credit score. Then, select from multiple pre-approved offers. Finally, receive your money in 1-2 business days after verification.

How to qualify for PenFed Credit Union?

In order to tailor their services to suit your needs, PenFed Credit Union may request additional documentation such as recent pay stubs, retirement statements, bank statements, or tax returns. They may also ask for a copy of your passport or driver’s license, your most recent utility bill, and/or your social security card as part of their verification process.

There is no need to become a member to apply for a loan. However, once approved for the loan, membership will be required.

PenFed Credit Union BBB Reviews

It’s no secret that PenFed Credit Union has had some issues with customer complaints. In fact, they currently have a 1-star out of 5-star rating on the BBB website with an average of 200 customer reviews and 541 complaints closed in the last 3 years. Despite this, they still maintain an A+ rating.

Here are some reviews:

Dianne M 07/19/2022

1.0 out of 5.0 stars1.0

I got a letter from this bank, telling me I had opened up an account. I informed them that it was not me. Things just went downhill. This is identity theft. After talking to so many people about this, could not get them to throw their heads. They just blow me off. Instead, they informed me that my credit score will take a hit. Again I tell them this is identity theft.

Got to know where. This bank has done me wrong. They also sent me a letter two days ago on how I was a valued customer and welcomed me as a new member. ARE YOU KIDDING ME? Do not bank here if you value your identity. What a joke.

Johnny B. 07/12/2022

1.0 out of 5.0 stars1.0

I would give them zero stars if I could. Take your money somewhere else even if you get lower rates. As a result of their error, PenFed opened up two money market certificate accounts instead of one. My external checking account now has a negative balance and yet every time I call PenFed gives me the wrong information. Atrocious customer service, and a terrible website. Stay far away from them if you want peace of mind.

Brian C. 06/23/2022

1.0 out of 5.0 stars1.0

DO NOT TAKE ADVANTAGE OF ANY PROMOTIONS OFFERED BY PENFED! My experience with PenFed, in the beginning, was a good one. I got a personal loan with a good interest rate. I should have stopped there. They sent me an offer where I would receive a $250 bonus if I opened a checking account and had my loan payments auto-debited from that account. After THREE payments I was supposed to receive a $250 deposit in my checking account. They said it can take up to TWO months after the three payments for the $250 to show up in my account. Why it takes two months to process something so easily, I don’t understand.

But, fine. After two months passed, I called about it. I was on hold forever, then the person I spoke with had no idea what I was talking about. Put on hold again while they tried to find someone who knew about the promotion. Spoke to someone who couldn’t give me an answer as to when to expect the $250, but said he would send my request to the correct department.

I let another month and a half go by, and still no $250. So, I called today. Again, the first person I spoke with had no idea what promotion I was talking about. Placed me on hold. Spoke to someone else. Confirmed my information AGAIN (last four of SS#, email address, phone number, date of birth, etc.).

The customer service rep finally found the promo information and read it back to me, I confirmed that that was, indeed, the promotion. He has to put me on hold AGAIN. Gets back on the line, and starts asking me what dates I made my first three payments. I admit it — I lost my patience and said “you have my account information in front of you – look it up!” He said something about needing me to tell him when those three payments were.

Finally, I said, just close out my checking and savings accounts and send me a check for the total amount. I’ll now just pay off my PenFed loan from my other credit union, which is a much better institution. Now I’ll never get that $250, but at least I’m done dealing with them.

PenFed Credit Union FAQs

How much does PenFed Credit Union charge?

PenFed Credit Union offers competitive rates on personal loans, with APRs ranging from 7.74% to 17.99%. All loans have a minimum monthly payment of $50, and there is a fee of $30 for returned payments. There is also a late charge of $29 for each payment that is not received on time.

Are there any pre-payment penalties?

There is no early payoff penalty, origination fee, or hidden fees.

How does PenFed Credit Union affect your credit?

Checking your rate will not have any impact on your credit score. However, proceeding with a loan after viewing your rates will require a full credit report inquiry, which will be reflected as a hard pull and affect your credit. This type of inquiry can cause your credit score to drop and can be seen by third parties.

How to cancel PenFed Credit Union?

When considering taking out a loan with PenFed Credit Union, be sure to educate yourself on all the terms and conditions associated with the loan. Understand that once you receive the funds, you cannot cancel or reverse the loan; thus, it is crucial to be certain that a loan is the best choice for you prior to moving forward.

Do you find it difficult to make ends meet? Here is some advice that may help you get back on track.

• Developing a budget and sticking to it is a great way to ensure you only spend what you can afford.
• Another option is to reach out to a financial advisor who can help you explore your options and develop a plan that is right for your circumstances.
• Finally, don’t despair if you’re already in debt. Many companies are willing to work with customers to arrange a more manageable payment plan. So reach out to their customer service team for more information.

Is PenFed Credit Union legit or a scam?

PenFed is a credit union that has been around for over 80 years. They have an A+ rating from the Better Business Bureau and an average of 200 customer reviews. However, they have had 541 complaints closed in the last 3 years and 242 in the last 12 months. This gives them a 1-star out of 5-star rating with the BBB.

When considering taking out a loan, it is important to explore all of your options and compare rates. Be sure to read customer reviews before making a decision, so that you can choose the best option for you. This way, you can avoid taking out a loan that you cannot afford.

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Thank you for reading!