PenFed debt consolidation loan, reviewed
PenFed is a credit union that anyone can join while applying. Its top rate stays under 18%, and it charges no origination fee.
$355 to $441 a month with PenFed on $15,000 over four years
$489 a month to clear the same $15,000 on 24% cards in four years
| APR range | 6.39% to 17.99% |
|---|---|
| Loan sizes | Up to $50,000 |
| Terms | Up to 60 months |
| Fee | No origination fee |
| Bank average, 24-month loans | 11.9% |
A PenFed debt consolidation loan replaces several card payments with one fixed payment. Its top rate, 17.99%, is the lowest of the 16 lenders here, but the best rates go to excellent credit.
Below are its rates, sizes and fees from its own disclosure, and who it suits.
Rates and loan sizes
PenFed lists APRs from 6.39% to 17.99% and loans up to $50,000 (PenFed). That top rate is the lowest of the 16 lenders we compare.
Federal credit unions may not charge more than 18% on most loans (NCUA). So even PenFed’s worst rate sits under that line.
The bank average for a 24-month loan is 11.9% (Federal Reserve G.19). A PenFed offer under that beats most bank loans.
Credit score needed
PenFed sets the rate from your credit history and how long you have been a member. It says its quoted rates assume excellent credit.
It publishes no score minimum. Its range tells you the price, not the odds of approval.
Fees
PenFed charges no origination fee, no early payoff fee and no balance transfer fee (PenFed).
So the full loan reaches your cards. On a $10,000 loan with a 9.99% fee elsewhere, you would lose $999 at the start.
How the money reaches your cards
You do not need to be a member first. PenFed creates your membership during the loan application.
Terms run up to 60 months, so a big balance cannot be stretched past five years here.
Who the PenFed debt consolidation loan fits
It fits a borrower with strong credit who wants no fee and a capped top rate.
It is a poor fit if you need more than $50,000, or if your credit is fair and you need a lender that takes more risk.
Complaints about PenFed are public in the CFPB database: 97 personal loan complaints under Pentagon Federal Credit Union.
Other choices
Put a PenFed offer next to two others before you sign. The best loans page lists all 16 lenders with their fees.
Run the offer through the debt consolidation calculator to see the payment next to what your cards cost.Compare PenFed with
Lender APR Loan sizes Fee 
LightStream9.99% to 23.94% with autopay $5,000 to $100,000 No origination fee 
Discover6.99% to 24.99% $2,500 to $40,000 No origination fee 
Wells Fargo6.74% to 26.74% $3,000 to $100,000 No origination fee 
SoFi6.99% to 35.49% $5,000 to $100,000 Optional fee of 0% to 7% 
LendingClub5.96% to 35.99% $1,000 to $75,000 Origination fee of 0% to 8% 
Reach Financial5.99% to 35.99% $3,500 to $40,000 Origination fee of 0% to 8% 
Achieve6.25% to 35.99% $5,000 to $50,000 Origination fee of 1.99% to 9.99% 
Upstart6.3% to 35.99% $1,000 to $75,000 Origination fee, 8.15% in Upstart’s own example loan 
Best Egg6.99% to 35.99% $2,000 to $50,000 Origination fee up to 9.99% 
Upgrade7.74% to 35.99% $1,000 to $50,000 Origination fee of 1.85% to 9.99% 
Happy Money8.95% to 35.99% $5,000 to $50,000 Origination fee set by amount, term and credit 
Prosper8.99% to 35.99% $2,000 to $50,000 Origination fee of 1% to 9.99% 
Avant9.95% to 35.99% $2,000 to $35,000 Administration fee up to 9.99% 
Universal Credit11.69% to 35.99% $1,000 to $50,000 Origination fee of 5.25% to 9.99% 
OneMain Financial11.99% to 35.99% $1,500 to $30,000 Flat $25 to $500, or 1% to 10%, by state
Related topics
- Loan vs debt settlement
- How to consolidate debt
- Home equity loan or HELOC
- Debt consolidation loan calculator
About this lender
Is PenFed good for debt consolidation?
Yes for strong credit: rates run from 6.39% to 17.99% with no origination fee. Compare your offer with your card rates before you accept.
Do I have to join PenFed to get a loan?
Yes, but you can join during the application. PenFed opens the membership as part of the loan.
What is the most PenFed lends?
PenFed lends up to $50,000 on terms up to 60 months.
Check your PenFed offer today
You hold a PenFed offer, or you are about to apply. The fee and the term change what it really costs. Call and a specialist goes through the offer line by line against your cards.