Credit union personal loans typically have lower-than-average rates, but you have to join to borrow.
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How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Carol Pope | Edited by Jessica Sain-Baird | Reviewed August 16, 2024
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
| Lender | Best for… | APR range | Loan terms | Loan amounts |
|---|---|---|---|---|
| Borrowers who need a lot of money | Starting at 10.49% (with autopay) | 12 to 60 months | $1,000 - $100,000 | |
| Member-focused perks | 9.99% to 19.99% | Up to 72 months | Up to $30,000 | |
| Fair- to bad-credit borrowers | 8.64% to 18.00% | 6 to 84 months | $500 - $50,000 | |
| Borrowers with military ties | 8.99% to 18.00% | Up to 60 months | $250 - $50,000 | |
| Good-credit borrowers | 8.99% to 17.99% | 12 to 60 months | $600 - $50,000 |
Read more about how we chose our picks for best credit union personal loans.
Credit union personal loans at a glance
Alliant Credit Union: Best for borrowers who need a lot of money
Starting at 10.49% (with autopay)
12 to 60 months
$1,000 - $100,000
Not specified
None
Pros
- Offers loans as high as $100,000
- Same-day funding
- Loan assistance program available in case of layoff, illness or other financial hardship
Cons
- Must be a member of Alliant for at least 90 days before you’re eligible to borrow
- Might find lower rates somewhere else if you have excellent credit
- No physical branches
What to know
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Many credit unions offer personal loans of $50,000 or less. With Alliant, you could borrow up to $100,000. And you won’t have to leave your house to apply since it’s an online-only credit union.
Note that Alliant offers same-day loans, but only to those who’ve been a member for at least 90 days. If you aren’t already with Alliant and need an emergency loan, this credit union won’t make sense for you.
How to qualify
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Technically, Alliant membership isn’t open to everyone, but it’s easy to join. As long as you meet one of the eligibility requirements below, you can become a member:
- Are currently employed with (or retired from) an affiliated employer
- Are an immediate family member to a current Alliant account holder
- Live or work in an eligible community (which are all located near Alliant’s Chicago headquarters)
- Are willing to make a donation of at least $5 to the Alliant Credit Union Foundation
See Your Personalized Results
Boeing Employees Credit Union: Best for member-focused perks
9.99% to 19.99%
Up to 72 months
Up to $30,000
Not specified
None
Pros
- May lower your rate midterm if you’ve improved your credit since taking out your loan
- Free financial coaching sessions and on-demand virtual video appointments
- Can temporarily postpone or reduce your monthly payments in the event of a hardship
Cons
- Small loan amounts might not provide the funding you need
- Can’t check rates without hurting your credit score or before becoming a member
- Must make a donation to an affiliated program if you don’t meet traditional eligibility requirements
What to know
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Boeing Employees Credit Union (BECU) offers unique perks that you might not find with other lenders. Remarkably, if you’ve improved your credit score since taking out your loan, BECU might lower your rate mid term. Normally, the only way to change your rate on an active loan is to refinance it.
That said, you can only borrow up to $30,000 with BECU. If you need a large loan, you might need to look elsewhere.
How to qualify
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BECU isn’t only for Boeing employees. The following individuals can join:
- Those who live, work, go to school or worship in Washington state
- Residents of certain counties in Oregon and Idaho
- South Carolinians who donate at least $1 to the BECU Foundation
- BECU employees, as well as employees of any credit union
- Eligible business owners
If none of those apply to you, you can become eligible by making a donation to the following organizations:
- University of Washington Alumni Association
- Washington State University Alumni Association
- BECU foundation
- KEXP radio station
- GoWest Foundation
- Sea Hawkers Booster Club
See Your Personalized Results
First Tech Federal Credit Union: Best for fair- to bad-credit borrowers
8.64% to 18.00%
6 to 84 months
$500 - $50,000
Not specified
None
Pros
- Open to working with borrowers with fair to bad credit
- Can add debt protection that may cancel some or part of what you owe in the case of death or disability
- Wide variety of repayment term options
Cons
- Only has branches in a handful of states
- $29 late payment fee
- Prequalification only allows you to check rates for two-year repayment terms, making it difficult to compare loan offers
What to know
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First Tech doesn’t specify its credit score requirements, but bad credit won’t automatically pull you out of the running. You could also add a co-borrower to your application to help boost your odds of approval. A co-borrower acts as a guarantee for the lender — both of you and your co-borrower are responsible for the loan.
However, First Tech’s prequalification process is a little rigid. It only provides rates for a two-year loan term. That means your quoted rate might not be all that accurate if you’re looking for a longer (or shorter) term.
How to qualify
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Like most credit unions, you must meet one of many membership guidelines to join First Tech. These include:
- Living with or being related to a current member
- Working for a partner employer or for the state of Oregon
- Working or living in Lane County, Oregon
- Belonging to the Computer History Museum or the Financial Fitness Association (First Tech will pay your dues for the first year)
See Your Personalized Results
Navy Federal Credit Union: Best for those with military ties
8.99% to 18.00%
Up to 60 months
$250 - $50,000
Not specified
None
Pros
- Active duty and retired military can get a 0.25% APR discount
- Juniors and seniors in military academy and officers in training may be eligible for ultra-low rates on a Career Kickoff Loan
- Offers joint loans, which can help military spouses build credit
Cons
- Must be affiliated with the military to become a member
- No online applications for home improvement and debt consolidation loans
- Must join before you can apply, and no option to check rates without damaging your credit score
What to know
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Navy Federal Credit Union (NFCU) offers military-centric benefits you might not find with other lenders. For instance, with rates between 1.25% and 2.99%, a Career Kickoff Loan could help you transition to military life on the right foot. Also, active duty and retired military automatically qualify for a discounted rate.
The biggest hurdle with NFCU is its membership eligibility requirements (more on that below).
Read our full Navy Federal Credit Union personal loan review.
How to qualify
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NFCU is only available to a narrow segment of the population, including:
- Active duty members of the military (regardless of branch)
- Veterans, retirees and annuitants
- Those in the Delayed Entry Program (DEP)
- DoD Officer Candidates and ROTC
- DoD Reservists
- Immediate family of military members, as well as household members
If you’re interested in NFCU because you’re a military member, review our roundup of the best military personal loans for even more lender options.
See Your Personalized Results
PenFed Credit Union: Best for good-credit borrowers
8.99% to 17.99%
12 to 60 months
$600 - $50,000
Not specified
None
Pros
- Anyone can become a member
- Can check rates without damaging your credit score (and before you become a member)
- Able to pay bi-weekly if you set up autopay with a PenFed checking account
Cons
- Unlikely to qualify with bad credit
- $29 late payment fee
- Will need to wait at least one day after approval to receive your loan
What to know
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PenFed makes it easy to shop around for a personal loan. Not only does it offer prequalification, but you can check your eligibility before becoming a member. Aside from competitive loans, PenFed membership comes with discounts on auto insurance, tax software and more.
PenFed doesn’t specify its minimum credit score requirements. However, historical internal LendingTree data shows that it tends to only work with borrowers with strong credit.
Read our full PenFed Credit Union personal loan review.
How to qualify
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Although its name implies otherwise, Pentagon Federal Credit Union (PenFed, for short) has open membership. You don’t need any specific affiliation to join. If you accept your offer, all you have to do is open an account with a deposit of at least $5.
See Your Personalized Results
Trustpilot
You may have heard from friends or family that credit unions are the best places to bank and get personal loans. Depending on your needs, they might be right.
Credit unions are member-owned nonprofits that are consumer friendly and offer low annual percentage rates (APRs). Credit union members sit on the board of directors, on a volunteer basis. Membership also typically comes with benefits like discounts and financial planning.
However, you have to join the credit union to take advantage of these perks. Some credit unions have strict membership requirements (such as Navy Fed). Others (like PenFed) allow anyone to join.
On this page
- How to get a personal loan from a credit union
- Credit unions vs. banks and online lenders
- Alternatives to credit union personal loans
- How we chose the best credit union personal loans
- Frequently asked questions
Credit unions 101
Federal credit unions are regulated by a federal government agency called the National Credit Union Administration (NCUA). By law, federal credit unions cannot charge APRs higher than 18.00%.
State-chartered credit unions are regulated by the state in which they are located.
Employee credit unions are offered by businesses for their employees. Sometimes, non-employees can join if they are affiliated with a partner organization or live in a certain area.
Community development credit unions help low- and moderate-income communities access loans and banking products. These credit unions focus on helping their members borrow at a reasonable rate, gaining financial literacy in the process.
How to get a personal loan from a credit union
- Do the math. When used responsibly, a personal loan can be a great financial tool. Still, it’s important to only borrow what you need to avoid unnecessary interest. Use a personal loan calculator to figure out how much you can afford to borrow.
- Find credit unions that you’re eligible to join. You probably won’t be eligible to join every credit union you come across. Before checking out a credit union’s loan offerings, make sure you meet its membership requirements. You can usually find these in the FAQ section on the credit union’s website.
- Shop around and prequalify (when possible). Not all credit unions allow you to prequalify for a personal loan. Prequalification lets you see what rates you might get without taking a hard credit hit.If you can’t prequalify, be sure to get your applications in within 14 days. If you do, only one hard hit will count against you. Try to get at least three offers so you can compare.
- Compare your offers. To get the cheapest loan, choose the one with the lowest APR. This measures how much your loan costs, including interest and fees.Also, pay attention to loan terms (or, how long you’ll have to pay back what you borrow). Paying off your loan faster usually means you’ll pay less overall interest. At the same time, a shorter loan term typically results in a higher monthly payment.
- Apply for membership and your loan. With some credit unions, you have to apply for membership before you can apply for your loan. Others will allow you to apply for membership and your loan at the same time. Either way, the application process should be straightforward, just follow the instructions the credit union provides.
Credit unions vs. banks vs. online lenders
Credit unions are great, but they aren’t right for everyone. Here’s what to consider when choosing between a credit union loan, a bank loan and an online loan.
| Financial institution | Pros | Cons |
|---|---|---|
| Credit unions | Ultra-competitive rates and fewer personal loan fees Membership benefits like discounts and free banking services Personalized service | Have to join to borrow Might not have a mobile app for loan account management Can be harder to qualify for than online loans, in some cases |
| Banks | Rates tend to be lower than online lenders Current members might be eligible for a relationship discount Bigger banks tend to have easy-to-use mobile apps and online banking | Might need to open a bank account to borrow Usually need at least good credit May need to apply in person |
| Online lenders | Can be easier to qualify for if you have bad credit No membership guidelines Many offer same- or next-day loans | Can have higher rates and more fees Might not have the same personalized guidance you’d get with a bank or credit union If you aren’t careful, you could fall prey to predatory lending |
Alternatives to credit union personal loans
Online personal loans
Online personal loans can offer quick funding and are easier to qualify for if you have rocky credit. And if you have excellent credit, many online lenders have rates that are on par with banks and credit unions.
No matter where you get your loan, taking on debt is a major money move. It’s essential that you get more than one offer before signing on the dotted line. On LendingTree’s loan marketplace, you could get up to five online offers at once. It’s free, and checking rates won’t hurt your credit score.
See Personalized Rates
Buy now, pay later
Similar to personal loans, buy now, pay later (BNPL) works like an installment loan. There are multiple types of BNPL plans, but one of the most common is the zero-interest “Pay in 4” plan. With this, your purchase is split into four equal payments, which you’ll repay over a six-week period.
Not all BNPL sites and apps report payments to credit bureaus. If you’re looking to improve your credit score, this option might not be your best bet.
0% APR credit card
0% APR credit cards come with an introductory period that usually spans between six and 21 months. As long as you pay off your balance by the time your introductory period ends, you won’t pay any interest.
Beware, though. Making a late payment could cause the credit card company to put a premature end to your introductory period. Also, unlike a loan (which comes as a lump sum of money), you can use a credit card as much as you want, up to your spending limit. This might lead you to overspend.
How we chose the best credit union personal loans
We reviewed more than 16 lenders to determine the overall best five credit union personal loans. To make our list, credit unions must offer personal loans with competitive APRs. From there, we prioritize lenders based on the following factors:
- Accessibility: Credit unions are ranked higher if their personal loans are available to more people and require fewer conditions. This may include easy-to-meet eligibility requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
- Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
- Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.
Frequently asked questions
It can be. Compared to banks and online lenders, credit unions usually offer lower rates. In fact, federal credit unions aren’t allowed to charge more than 18.00% APR.
One thing to consider, though, is time. If you aren’t already a member, you’ll have to join before you can get a loan. This could be a cause for concern if you need money fast.
Every credit union has its own personal loan requirements, and these are rarely disclosed. You’ll need to prequalify or apply to see if you’re eligible.
PenFed is the easiest credit union to join on this list. It doesn’t require you to have any specific affiliation to become a member. If you don’t meet Alliant’s, BECU’s or First Tech’s traditional membership guidelines, you just need to make a small donation to a partner charity or organization.
Usually, you need a credit score of at least 640 to get an affordable personal loan. If your score is lower than that, explore fair credit and bad credit loans. First, figure out where you stand by checking your credit score for free with LendingTree Spring.
