What credit bureau does Penfed use?
A credit bureau, which Penfed use is your fico score for determining if you are eligible for the loan or not. They pulled this from Equifax, one of the best credit agencies in America.
How Does Penfed Credit Union Work?
Now, if you wish to get a loan from the Penfed credit union, the minimum credit score that they accept is 650.
Mortgage rates at Penfed union
Now, your interest rates will be determined by your credit score, with customers with a credit score of 760+ getting only 2% APR and customers with the least of credit score range like 650-679 getting an interest rate of 3.268%, which is a major difference. If you see a loan of 30 years you can save up to $93,600 in interest.
Penfed credit union’s pros and cons
PROS: CON’S:
Review
For small loans, Penfed is the best option. Its loan range is $600-$50,000 with a repayment period of 1–5 years. It is best known for its services to government employees, but anyone can open an account with just $5 as a minimum amount. The major feature which you don’t see in any credit union is that the lender lets the borrowers pre-qualify and lets you couple your mobile app with 7 days of customer service. It is best for customers who have a good credit score (690+) and are Penfed members and want to add the name of co-borrower to their application or want to secure a loan with the Penfed account.
Penfed Vs Major Banks
Not all banks are bad and not all credit unions are good the difference is that credit union being a private company can allow if their interest rates are low and have less profit but to be a part of this you will need to be a member of it by paying them a membership fee. But the penfed credit union is one of the best credit unions as the fees are minimal and types of loan rates are also very low. Bank on the other hand have some target marketing for profits and their interest rates are also high but banks are open to anyone and not only to their members and they have better services than the credit unions and international banks are more effective than credit. So the answer to this is everything depends on your choice. For small transactions credit unions are good but if you need big loans and great service banks are best.
Step for increasing the credit score?
By Paying your bills on time you are increasing the fact that your credit score will increase.And try to keep your credit card utilization rate low as the more debt you have the more chances your credit score is low.You can yourself check your credit score by taking help from any credit checking agency with a fees and try improving it yourself.
Conclusion
A good credit score can get you low insurance premiums and low-interest rates. Therefore keeping a good credit score lets you take big loans and also from big companies which take only the customers having good ethics and such.
Who is eligible of becoming a Penfed member
The current and prior government employees and service embers are eligible.
Does Penfed increase your credit limit?
If you have the Penfed platinum card your credit limit can be increased.
