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How Does LendingTree Get Paid?
Companies on this website pay LendingTree, and this pay may have an impact on where and how offers appear on this website (such as the order). Not all lenders, savings products, or loan options are offered by LendingTree in the market.
Note from the Editor: This article’s content is solely based on the author’s opinions and suggestions. It might not have received approval from any of our network partners through reviews, commissions, or other means.
PenFed auto loans at a glance
Even though applying for an auto loan may not be the most fun part of the car-buying process, PenFed Credit Union wants to help you enjoy the drive. It provides competitive rates and flexible loan terms to put you in control. To find out if a PenFed auto loan is suitable for you, continue reading.
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PenFed pros and cons
When applying for a car loan, there is a lot of information to sort through, but the more information you have, the better decision you can make. So let’s dissect what PenFed auto loans can provide, no pun intended.
PenFed’s auto loan rates drop from 5. 24% to 4. 44% for new cars and from 6. 04% to 5. 84% for used if you use their car-buying service. PenFed collaborates with TrueCar, which assists you in finding the car you want to purchase and connects you with a dealer who has that car in stock. This service offers lower rates as well as access to special manufacturer offers on new or used cars from approved dealers for established members (members for more than 60 days).
You must be a member, of course, to receive those rates. All credit unions demand membership from their customers, but PenFed charges a low $5 membership fee and welcomes anyone with a U S. tax ID number or Social Security number. You’ll need to use PenFed’s car-buying service, which may restrict you to specific models and dealers, in order to be eligible for the bank’s lowest rates.
A closer look at PenFed auto loans
The Pentagon Federal Credit Union, or PenFed, is the second-largest federal credit union in the United States. S. — serving all 50 states — and has 2. 8 million members worldwide.
PenFed’s offerings go beyond the auto loan, however. Additionally, it provides debt protection, which may safeguard you in the event of unforeseen financial difficulty, GAP protection (if your loan exceeds the value of your car), and extended warranties to fill in where the manufacturer’s policy leaves off.
A new vehicle must be model year 2021 or newer to be eligible for PenFed refinancing, while a used vehicle must have at least 7,501 miles on it or be officially classified as a pre-owned vehicle. It’s important to know that PenFed doesn’t refinance its own loans.
How to get a loan with PenFed
You can apply for a loan with PenFed online if you already have a car in mind or are refinancing. You can apply for membership and a car loan at the same time if you haven’t already done so because the paperwork for the auto loan includes a section for membership applications.
You have choices if you’re just beginning your car-buying process. To be preapproved or to look at vehicles in their network, you do not need to be a member. However, if you have been a PenFed member for at least 60 days prior to purchasing a vehicle, you may be eligible for special rebates worth $500 to $2,000, depending on the vehicle manufacturer.
After shaking hands with the vendor, you must complete the loan paperwork. You or the dealer can ask PenFed for the appropriate paperwork and sign it. Once your financing is arranged, you can ride off into the distance.
How PenFed auto loans compare
When looking for an auto loan that best suits your needs, it is always best to compare lenders. If you choose not to use PenFed’s car-buying service, here is how it compares to rival lenders for a new vehicle. Keep in mind that in order for a loan to be approved, Digital Federal Credit Union (DCU) also requires that you be a member.
Companies on this website pay LendingTree, and this pay may have an impact on where and how offers appear on this website (such as the order). Not all lenders, savings products, or loan options are offered by LendingTree in the market.
How Does LendingTree Get Paid?
Companies on this website pay LendingTree, and this pay may have an impact on where and how offers appear on this website (such as the order). Not all lenders, savings products, or loan options are offered by LendingTree in the market.
Is a PenFed loan right for you?
PenFed adheres to the old adage, “Membership has its benefits. You can benefit from PenFed Credit Union’s flexible loan terms, low interest rates, and 100% online preapproval and application process by becoming a member.
If you’re interested in PenFed’s car-buying service, which is provided in conjunction with TrueCar and offers a starting APR of 4, that is an even better choice. 44%. For buyers who want to benefit from PenFed Credit Union membership benefits, an auto loan might be the best option.
As with any lender, you will get a better rate if your credit score is higher. Although PenFed does not disclose a minimum credit score requirement, most auto loan providers typically reserve their best rates for borrowers with credit scores over 660. If your credit needs a little work, there are many lenders who offer bad-credit auto loans, and you can check your score here for free.
A PenFed preapproval is good for 60 to 90 days.
Although this information is not available on PenFed’s website, it is industry standard for vehicles older than eight to ten years or with more than 100,000 to 150,000 miles on them to require a personal loan or a classic car loan to be financed. For further inquiries, PenFed’s main phone number is 1-800-247-5626.
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FAQ
Does PenFed do pre approvals?
Pre-qualifying online with a soft credit check allows you to see your potential rates and loan amounts without affecting your credit score, unlike other credit unions or even some major banks. PenFed
What credit score do you need for PenFed auto loan?
Loan Type Minimum Credit Score* Auto loan 652, Student loan 670, Conventional mortgage 620, FHA loan 580
How long is a PenFed auto pre-approval good for?
Personal loan checks and two-party vehicle loan checks have a 30-day expiration date. Pre-approval drafts are valid for 90 days.
Can anyone get a PenFed auto loan?
Auto loans are made nationwide by Virginia-based credit union PenFed. Because of its open charter, anyone can join.