PenFed is a large credit union that offers personal, auto, home, and recreational loans. They have many easy loan options with low APR interest rates. As long as you’re a PenFed member you can apply easily online and they respond quickly, sometimes even instantly. This is what we liked:
- APR as low as 0.99%
- Small loan options (as low at $500)
- Up to 110% financing available
- Easy online application
- Preapproved auto drafts available to qualified buyers
- After 12 months you can appeal to extend and lower your payments
- No early pay off penalty
- No mileage or car age restrictions
- Free Carfax reports
- Free TrueCar price reports
- Discounts on car insurance with membership
- Discounts on tire services with membership
Not only does PenFed have these great options, but they also have a comprehensive website that offers financial tips. Their car search options allow you to shop for your new car and find the perfect loan at the same time. Not only do they help you shop for cars, but their members also report an estimated $3,000 in savings off of MSRP on their new cars. Additionally, PenFed offers member discounts on purchasing a Mercedes-Benz. They are also one of the few companies that still offer a payment saver option. Essentially, you can make smaller payments for 60 months and then pay the remaining amount of your loan in a balloon payment at the end of the 60 months.
The only catch to PenFed banking is you have to be a member. Since PenFed is a credit union they are member based and you have to qualify for membership based on any of the following; military service, government employment, school district employment, volunteer work, donation, or qualification by association. Other things that PenFed doesn’t offer are free credit checks and bad credit loans. Additionally, PenFed has a helpful customer service phone number; however, this is their only customer service option so if you need assistance you have to call in during business hours.