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Borrowing from a credit union can offer some advantages over other types of personal loan lenders. For one thing, 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 are also more likely to offer loans for smaller amounts.
Best Credit Union Loans for Short Term Lengths: Service Credit Union Personal Loan
Key features: Wide variety of loan amounts, fast approval process, no prepayment penalties
Loan amounts and terms: $1,000 to $50,000, 24 to 60 months
Pros:
- Highly rated by the Better Business Bureau
- Wide range of loan amounts
- Quick approval
Cons:
- High minimum APR
- Only military members and their families can join (unless you're a member of the American Consumer Council or the Financial Fitness Association)
Best for: Short term lengths, military members in the U.S. and Germany, those who need fast approval and want to pay off their own early
Service Credit Union has one of the shortest minimum repayment term lengths 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.
Best Credit Union Loans for Coborrowers: PenFed Credit Union Personal Loan
Key features: Apply with a coborrower to improve your approval odds
Loan amounts and terms: $600 to $50,000, 1 to 5 years
Pros:
- Low minimum APR
- Co-borrowers allowed
- No prepayment penalty or origination fee
Cons:
- Charges a late fee
Best for: Applying with a co-borrower, those with good credit who can secure the lowest interest rate
PenFed Credit Union 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.
Best Credit Union Loans for Same-Day Approval and Funding: Alliant Credit Union Personal Loan
Key features: Debt protection available for purchase, generally quick approval times
Loan amounts and terms: $1,000 to $50,000, 1 to 5 years
Pros:
- No origination or prepayment fees
- High BBB score
- Debt protection available
Cons:
- Some other lenders have lower miminum loan amounts
Best for: Quick approval and funding
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.
Best Credit Union Loans for Good Credit: Connexus Credit Union Personal Loan
Key features: Offers a bonus of $150 back into a Connexus savings account on eligible loan amounts and terms
Loan amounts and terms: $2,500 to $25,000, 24 months to 84 months
Pros:
- Low minimum APR
- Fate discounts for automatic payments and existing credit union members
- No origination or prepayment fees
Cons:
- Higher loan minimum and lower loan maximum amount than other lenders
- Charges a late fee
Best for: Applicants with good credit, existing Connexus members
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.
Best Credit Union Loans for Small Loan Amounts: Navy Federal Credit Union Personal Loan
Key features: Coborrowers allowed, 24/7 customer service, no origination fee
Loan amounts and terms: $250 to $50,000, 12 to 60 months
Pros:
- Small loan amounts available as well as large
- No origination or prepayment fees
Cons:
- Charges a late fee
Best for: Small loan amounts
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 that while the lender doesn't have a specified minimum credit score, eligibility requirements will likely be higher than with a payday lender.
Best Credit Union Loans for Long Term Lengths: First Tech Fixed Rate Personal Loan
Key features: Same-day funding, 24/7 customer support
Loan amounts and terms: $500 to $50,000, 6 to 84 months
Pros:
- Wide range of loan amounts
- Extra-long term lengths available
- No prepayment penalties or origination fee
Cons:
- Charges a late fee
Best for: Term lengths up to 80 months
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 almost seven years, which will reduce your monthly payments but will cost you more overall due to interest.
Credit Union 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:
| Lender | BBB Grade |
| Alliant Credit Union Personal Loan | A+ |
| Navy Federal Credit Union Personal Loan | NR |
| First Tech Personal Loan | A+ |
| PenFed Credit Union Personal Loan | A+ |
| Service Credit Union Personal Loan | A+ |
| Connexus Credit Union Personal Loan | A+ |
Most of our top picks are rated A+ by the BBB, with the exception of 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 currently designates Navy Federal as unrated because the company is responding to previously closed complaints.
How to Choose the Best Credit Union Personal Loan
There are a few advantages to choosing a personal loan from a credit union rather than a bank, including lower interest fees on average. We looked at loan term lengths, credit score criteria, interest rates and other fees, and customer reviews to come up with our list of the best credit union personal loans.
Here are the main factors you should keep in mind to find the personal loan from a credit union:
- Eligibility — Credit unions require you to be a member. In some cases, joining is as simple as living in a specified state or county. There are also credit unions for military members and their families.
- Credit score requirements — Most credit unions have a minimum credit score requirement of 640 for personal loans. If your credit isn't in great shape, look for a credit union that allows co-borrowers. If you're repairing your credit or looking to start building credit, some institutions offer credit-builder loans.
- Interest rates and fees — The lower the interest rate, the less you'll pay to borrow money. By comparing your offers with several credit unions, you can find the lowest rate possible. You'll also want to look out for fees. The most common ones are origination fees (which are loan-processing fees charged when you get your loan), late-payment fees, and prepayment penalty fees.
- Loan amounts and terms — Some credit unions specialize in offering smaller loan amounts, while others have minimums of $1,000. Know how much money you need ahead of time, and consider what term length will be best. Longer term lengths have smaller monthly payments, but you'll also pay more in interest over the course of your loan.
- Customer service — Some credit unions have round-the-clock customer service, while others have more limited accessibility. Also consider whether you want a credit union with a brick-and-mortar location you can visit in person.
Credit Union Personal Loan Alternatives
One huge benefit to choosing a credit union personal loan is that interest rates are capped, so you won't pay more than 18% APR. But credit unions aren't your only option for borrowing money — and if you have a bad credit score, you may not be eligible for their loans. Here are some other options to consider:
- Online lenders — Online loans offer speed and convenience, and depending on your credit score, you could secure a comparable interest rate. They're also available to customers with a wider range of credit scores, but low scores will come with higher APRs.
- Banks — The best banks for personal loans are especially rewarding to existing customers, offering lower rates. But to qualify you'll need a solid credit score.
- Peer-to-peer lending — P2P platforms like Prosper Loans connect borrowers with investors offering loans. If you're struggling to qualify for a loan through other avenues, this could be an option to explore. You'll generally pay higher interest rates and fees with peer-to-peer lending, though.
FAQs About Credit Union Loans
The benefits of getting a personal loan from a credit union include capped interest rates, smaller loan amounts, and potentially less stringent eligibility requirements compared to banks.
Compared to banks and online lenders, credit union loan rates can be lower. Credit union loan APRs are capped at 18%, while banks and online lenders can charge as much as 30% or more.
You could get a personal loan from a credit union even if you have bad credit. Credit unions have more flexible loan eligibility requirements than banks and are often willing to consider your whole financial picture and history as a customer when making lending decisions. Some credit unions also let you apply with a co-borrower, which can boost your chances of approval.
The highest interest rate for a credit union personal loan is 18% because The National Credit Union Administration caps the amount of interest credit unions can charge for personal loans.
Credit union personal loans are often only available to members. However, it is often very easy to become a member of a credit union, in many cases requiring only that you open a savings account and keep a balance of just a few dollars.
Why You Should Trust Us: How We Chose the Best Credit Unions for Personal Loans
We rate all personal loan products in our reviews and guides on a 1-5 scale following our personal loan rating methodology.
The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others based on what matters most to lenders. For example, interest rates account for 20% of a loan's score, while customer support accounts for just 7.5%.
