PenFed Credit Union 2024 Review
PenFed Credit Union Auto Loan Refinancing Review – Pros, Cons and Important Information
Start the refinancing journey today to lower your interest rate and to enjoy a lower monthly car payment.
If you’ve been on the hunt for a trustworthy credit union to meet your financial needs, particularly when it comes to your auto loans, PenFed Credit Union could be the ideal choice. With decades of experience serving customers, the institution helps members find better financial products and incentives. In this PenFed Credit Union review, you’ll learn more about the auto loan refinancing process.
With a rise in online lenders and marketplaces, it may be less common to join or participate with a credit union for your loan needs. But even if you aren’t a current member, researching this option could be a wise move financially. You may be able to get the support you need in addition to accessing some of the best interest rate options available.
In this myAutoLoan review below, you’ll learn everything you need to know about this institution’s background, its financial products, auto loan costs, and more.
PenFed Credit Union: What You Need to Know
PenFed Credit Union was originally founded in 1935 and has sought to serve customers and clients since its inception. With over 2.0 million members worldwide and a combined $25 billion dollars in assets, PenFed is a stable, financially sound choice for your financing needs.
At a glance, PenFed has been able to help customers receive over $37 million in cash back, with over 4,000 homes and mortgages financed. These metrics illustrate an impressive dedication to helping propel the world of banking into the future, with better options for customers.
PenFed is federally insured by the National Credit Union Administration, an equivalent of the FDIC. The union also maintains a strong commitment to consumers’ online privacy and data security needs.
Check out the video on PenFed’s About Us page to get an overview of the institution’s rich history: https://www.penfed.org/about-penfed
How Does PenFed Auto Loan Refinancing Work?
Auto loan refinancing is a process that basically allows a consumer to trade in an existing car loan for another loan with more favorable terms. The second lender you select pays off the existing car loan and repackages it into new terms, often at a substantial benefit.
Depending on your unique situation, auto refinancing is helpful when you:
- Know that there are lower interest rates on car loans available
- Have a desire to change the repayment length or adjust other loan terms
- Need to lower your monthly payment amount for financial reasons
- Want to work with a new lender as a matter of choice or preference
Important PenFed Characteristics
You can learn more about PenFed’s auto refinancing program in particular by visiting the company’s Refinance page. There, you’ll learn about the defining characteristics of PenFed’s popular auto refinancing program. Benefits of auto loan refinancing at PenFed include:
- New loan amounts of up to $100,000
- Up to 100% financing available
- Easy and streamlined online application
Customers should note that if a current car loan is already financed through PenFed, refinancing is not a viable option. The terms of the original loan must stand on existing PenFed loans.
Where is PenFed Available?
PenFed is available to residents of the United States, in all 50 states and Washington D.C. Additionally, the credit union serves members in Guam, Puerto Rico, and Okinawa. These service locations may make PenFed a desirable choice for members of the United States Armed Forces and their families stationed abroad.
How Much Does PenFed Cost?
Since PenFed is a credit union, personal membership is required. In order to set up or apply for a new membership, PenFed requires the opening of a new savings or checking account with at least $5 down. Once membership is approved, the application for auto loan refinancing is free.
As with other banking institutions, PenFed may charge certain fees for services. All of these fees are listed in a transparent way on the Service Fees page.
In terms of auto loan refinancing, how much money you can save is dependent upon the balance of the existing loan, the new interest rate, and other terms and conditions. The associated costs vary by person and situation.
What Type of Auto Loan Refinancing Does PenFed Offer?
PenFed Credit Union offers two types of auto loan refinancing. The differences of each offer depend on the model year of the car in question.
The two types of auto loan refinancing are:
- Refinance rates for 2019-2020 vehicles
- Refinance rates for vehicle model years 2018 and older
For a full chart that breaks down the refinancing rates based on model year, term length, and existing loan amount, visit PenFed’s auto loan refinancing page. As you’ll discover, loan terms range from 36-84 months, and interest rates vary from 2.14-4.49% APR.
Additional Benefits of Auto Refinancing with PenFed
Customers who apply for an auto refinance with PenFed Credit Union are also eligible for the following benefits and incentives.
- Gap Insurance - covers situations when the value of the car is less than the loan amount, which can happen in accidents and theft
- Extended Warranty - available for extending the manufacturer’s warranty after it expires
- Debt Protection - protects families in the event of unexpected loss and gaps in payment
Pros and Cons of Using PenFed
Whether you opt for an online marketplace, a physical bank branch, or a national credit union, there are always perks and downsides. Consider the ways that your banking institution or lender of choice goes out of the way to serve and equip customers. Below are a few pros and cons that buyers can expect with PenFed.
Pros
- Supportive credit union model backed by a long history
- Financially stable organization with a variety of assets and products
- Military-friendly institution with a focus on serving near military bases
- Options available for automotive, home, banking, and credit needs
- Beneficial membership discounts for credit union members
Cons
- Credit union membership is a significant part of working with PenFed, which may not be the best choice for every consumer
- Website is very elaborate, and it may take some time to research completely
- Some associated service fees and additional costs required
- As a fully functioning credit union, there is no specialization for auto loan refinancing
Are There Discounts on PenFed Products?
Although there may not be specific discounts on PenFed financial products in general, becoming a member of a credit union does have discount benefits. In fact, PenFed has a full page dedicated to the membership benefits that you can explore.
For auto products specifically, these incentives include:
- Asset protection
- Mechanical breakdown protection
- Car buying services
- Automobile insurance
- Rental car services
- Tire and oil replacement services
PenFed Customer Reviews
To locate real customer reviews for PenFed Credit Union, you may have to do some in-depth online research. However, the company does share several customer testimonials on the About PenFed page.
Here are some notable things that reviewers had to say about being a member at PenFed.
“You're doing a good job. The vast majority of web sites are more difficult to navigate and use - some are impossible. Your web site, and the process, are very user friendly.” – Chalmer Barker, Idaho (review on website)
“I have been with Penfed for over 30 years, and they continue to provide outstanding and timely service. Very customer facing!” – George Ross, Colorado (review on website)
_“The membership process was done quickly, and was very easy to complete. Thank you for a wonderful experience, and I would highly recommend [it] to family and friends.” _– Jennifer Olschefski, Pennsylvania (review on website)
How to Apply for a PenFed Auto Loan Refinance
Applying with PenFed Credit Union is an easy process, once you secure membership. Below are the steps required to complete an auto refinancing application and to receive your new loan terms.
On the Web
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Go to the website https://www.penfed.org/.
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On the top menu, hover over “Auto” and select “Auto Refinance.”
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There are several green “Apply Now” buttons dispersed on the page. Click on one of these buttons to get started.
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If you are an existing PenFed Credit Union member, simply log in to your account.
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If not a member, you will first need to apply for membership.
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Complete all pages of the online application by accurately submitting details of your current auto loan. This process requires membership and bank account information.
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Check the application for accuracy and submit in full to PenFed.
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Once approved, you can check all information regarding your account by setting up online portal access and logging in directly.
By App
To apply, visit PenFed’s main website and online application. Customers should defer to the above process for completing an application, rather than using a mobile app.
By Phone
Customer support is available during normal business hours at 724-473-6333. If you need phone support for an application, be sure to explore the options on the Contact Us page.
How to Contact PenFed Credit Union
Address: Box 1432
Alexandria, VA 22313-2032
Member Service: 724-473-6333 or 724-4PENFED
1-800-247-5626
Support Hours: Monday - Friday: 7:00 am to 11:00 pm Eastern Time
Saturday: 8:00 am to 11:00 pm Eastern Time
Sunday: 9:00 am to 5:30 pm Eastern Time
Email Support: [email protected]
Website: https://www.penfed.org/
Facebook: https://www.facebook.com/PenFed/
Twitter: https://twitter.com/PenFed
LinkedIn: https://www.linkedin.com/company/pentagon-federal-credit-union
Blog: https://www.penfed.org/learn
More information about how to contact PenFed Credit Union can be located on the company’s Contact Us page.
Does PenFed Offer Other Financial Products?
Yes, as a fully functioning credit union and banking institution, PenFed offers a variety of financial options to meet customers’ needs throughout life. This includes:
- Checking and Savings. PenFed’s traditional banking options include traditional checking and savings accounts in addition to high-yield options and IRAs. With helpful account comparison charts, it’s easy to see which account option could be best for your goals and needs.
- Card Options. PenFed facilitates VISA credit card options for credit union members. There are several different rewards options and spending levels. Members can apply for these accounts directly through PenFed.
- New Auto Loans. In addition to auto loan refinancing, PenFed has several options and financial products for the purchase of new or used vehicles. PenFed offers a quick look at some of the most popular rates and options. Additionally, customers have access to an innovative car buying service through TrueCar.
- Mortgage and Home Equity. Home loans are another significant part of PenFed’s offerings. In addition to traditional mortgages, PenFed helps cater to first time home buyers or those who need specialized VA loans.
- Wealth Management. The company’s wealth management services are a separate arm designed to help customers save and plan for retirement. Financial advisors are available to provide guidance for making major investment decisions.
PenFed Review – Summary
In this PenFed Credit Union review, you’ve taken a journey into learning more about credit union options for refinancing. While this option stands in contrast to those from online lenders and open marketplaces, it’s hopefully provided another avenue for you to consider when refinancing your car loan. No matter which path you choose, it’s important to prioritize the best terms, customer service offerings, and company reputation.
Want more information? You can find even more answers on the company’s FAQ page.
Frequently Asked Questions
What is a Payment Saver Loan?
In a Payment Saver Loan for cars, customers can make a lower payment than a traditional auto loan but at a higher interest rate. At the end of the loan, customers can expect to owe the remaining balance. Once that time hits, it’s the responsibility of the customer to pay the loan off in cash, or to trade, sell, or refinance the same vehicle again.
Does PenFed share the amount of specific service fees?
Yes, it’s important to acknowledge that PenFed has a set list of fees. Customers can easily access the types of fees and their amounts here. These costs are associated with things like premium accounts, lines of credit, late payment charges, and more.
Is PenFed insured by FDIC?
Although this question may be more relevant to banking customers who make regular deposits, PenFed is federally insured by the National Credit Union Administration. This institution is the national equivalent of the FDIC for credit unions.
What’s the best way to see and compare auto loan rates?
PenFed has a number of calculators available on the main Auto Loans page. Here, customers can take a closer look at both new and used auto loans, in addition to calculating refinanced amounts. If you want to know your estimated payment, these tools are especially helpful at showing potential costs and savings.
Does PenFed offer any educational resources for customers?
PenFed Credit Union maintains a blog or knowledge base called the Learning Center. Here, customers can locate helpful articles about topics in the financial services industry. There are also several posts about specific financial products, including auto loans and refinancing.
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