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Borrowing from a credit union can offer some advantages over other types of personal loan lenders. Interest rates are capped at 18% by the National Credit Union Administration. So if your credit isn’t in the best shape, you may get a lower rate than with a bank or online lender. Credit unions also are more likely to have loans for smaller amounts available. Here are some great options for beginning your search for a credit union personal loan.
Best Credit Union Personal Loans
Service Credit Union Personal Loan: Best for short term lengthsPenFed Credit Union Personal Loan: Best for co-borrowersAlliant Credit Union Personal Loan: Best for same-day approval and fundingConnexus Credit Union Personal Loan: Best for good creditNavy Federal Credit Union Personal Loan: Best for small loan amountsFirst Tech Personal Loan: Best for long term lengths
Next Step: See if you’re prequalified for a loan without impacting your credit score.
We’ve gathered the best lenders for people with a range of credit scores, with a specific focus on finding credit unions that offer low personal loan APRs.
Compare the Best Credit Union Personal Loans
Credit Union Personal Loans Frequently Asked Questions
How are personal loans from a credit union different than ones from an online lender?
If you qualify for a personal loan from a credit union, you’re more likely to get a better rate than with an online lender as credit unions’ APR ranges are smaller. While online lenders will generally have a seamless online and mobile personal loan experience, sometimes credit unions don’t have access to the same technology.
Is it better to get a loan from a bank or credit union?
Whether a loan from a bank or a credit union is right for you will depend on the type of loan you’re looking for and your financial situation. For instance, if your credit score isn’t great and you only need to borrow a small amount, a credit union might be right because their interest rates are capped at 18% and often offer smaller loan amounts than banks do.
What credit score do you need to get a personal loan from a credit union?
With the exception of Connexus Credit Union, which has a minimum requirement of 640, the credit unions we’ve chosen have unspecified minimums. Instead, most of these lenders will make approval decisions based on a complete financial picture, including your credit history, ability to repay, the amount you want to borrow.
Are personal loans from credit unions legitimate?
Personal loans from credit unions are legitimate, provided you’re dealing with a reputable lender. Your best option is to find personal loans from an NCUA-accredited credit union. Also make sure you’re aware of common loan scams to avoid.
Best Credit Union Personal Loan Lender Reviews
Service Credit Union Personal Loans
Service Credit Union has the shortest minimum repayment term length for its personal loans of all the lenders we’ve chosen as top picks. This may be helpful if you can afford larger monthly payments and want to save on the total interest you pay. If you are looking for an alternative to a payday loan with lower APRs, Service’s personal loans may be for you.
Service Credit Union Personal Loan Review
PenFed Credit Union Personal Loans
PenFed Credit Union has one of the shortest minimum repayment term lengths of any of the lenders on our list. PenFed also has one of the lowest starting APRs of any of our top picks for credit unions.
The company’s personal loans have no origination fees and no prepayment penalties. You can apply with a co-borrower, which may help you get a better interest rate if your co-borrower has a good credit history.
PenFed Credit Union Personal Loan Review
Alliant Credit Union Personal Loans
Alliant Credit Union in most cases can approve and fund your loan on the same day, which gives it a a leg up on competitors whose approval processes are slower. The lender charges no origination fees and has no late payment penalty, lowering the overall cost of your loan.
You can also purchase debt protection for your loan that covers death, disability, and involuntary unemployment, safeguarding you from unexpected events that could leave you unable to repay your loan. The monthly cost for debt protection is $1.99 per $1,000 of your outstanding loan balance.
Alliant Credit Union Personal Loan Review
Connexus Credit Union Personal Loans
Connexus Credit Union is the only lender on our list with a minimum credit score requirement. While you can qualify for this lender’s personal loan with good credit, you may have to look elsewhere if your credit isn’t in as good of shape.
Connexus has the lowest APR minimum of any of our listed credit unions, but also has the smallest maximum loan amount of any pick. You may like Connexus if your credit is in good shape and you need a moderate amount of cash.
Connexus Credit Union Personal Loan Review
Navy Federal Credit Union Personal Loans
Navy Federal Credit Union offers loans for as little as $250, the smallest minimum loan amount of all the lenders on our list. If you are looking for an alternative to a payday loan with lower APRs, Navy Federal’s personal loans may be for you. Keep in mind, while the lender doesn’t have a specified minimum credit score, eligibility requirements will likely be higher than with a payday lender.
Navy Federal Credit Union Personal Loan Review
First Tech Personal Loans
First Tech will lend you as little as $500, which is useful if you’re looking for a small amount of cash and want to avoid the high APRs that accompany payday loans. First Tech loans come with no application, origination, or annual fees, and there’s no penalty for paying off your loan early.
If you’re looking to spread out your payments over a longer amount of time, First Tech has the longest maximum loan repayment length of any lender on our list. You can divide up your payments over seven years, which will reduce your monthly payments but will cost you more overall due to interest.
First Tech Personal Loan Review
Other Credit Union Personal Loans We Considered
BethPage Federal Credit Union Personal Loan: BethPage has a solid minimum APR of 6.99% and flexible loan terms from one to seven years. However, you can only borrow up to $15,000 with BethPage, a substantially lower maximum loan amount than any of our top picks.
Wings Financial Credit Union Personal Loan: Wings Financial has a minimum APR of 8.99%, which is higher than any of the lenders on our list. Additionally, the credit union only offers three repayment terms: four, five, or six years.
Consumers Credit Union Personal Loans: While you can take out up to $100,000 with Consumers Credit Union — a higher maximum than any of our top credit unions — the lender has a high minimum APR of 8.49%.
Credit Union Personal Loan Lender Trustworthiness
We’ve reviewed and compared each institution’s Better Business Bureau score to help you make the best decision possible when choosing a personal loan from a credit union. The BBB measures businesses based on factors like their truthfulness in advertising, openness about business practices, and responsiveness to consumer complaints. Here is each company’s score:
LenderBBB GradeAlliant Credit Union Personal LoANA+Navy Federal Credit Union Personal LoanNRFirst Tech Personal LoanFPenFed Credit Union Personal LoanA+Service Credit Union Personal LoanA+Connexus Credit Union Personal LoanA+
Most of our top picks are rated A+ by the BBB, with the exception of First Tech Federal Credit Union and Navy Federal Credit Union. Keep in mind that a high BBB score does not guarantee a good relationship with a lender, and that you should continue to do research and talk to friends and family who have used the company.
The BBB gives First Tech an F grade because of 92 complaints filed against the business, including five unresolved complaints. Navy Federal isn’t rated as the company is responding to previously closed complaints.
Why You Should Trust Us: Our Methodology
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
Interest rate (20% of rating)Fees (20% of rating)Term lengths and loan amounts (15% of rating)Funding speed (15% of rating)Borrower accessibility (15% of rating)Customer support (7.5% of rating)Ethics (7.5% of rating)
Each category’s weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan’s terms, so they have less of an impact on the overall rating.
See our full personal loans ratings methodology >>