Best Credit Union Personal Loans in 2024

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Written by Amanda Push | Edited by Jessica Sain-Baird | Reviewed July 26, 2024

Best credit unions for personal loans

Navy Federal Credit Union: Best for borrowers with military ties

8.99% - 18.00%

Up to 60 months

$250 to $50,000

None

Not specified

Pros

  • Repayment terms up to 60 months
  • Loan amounts as small as $250
  • Option to use co-applicant
  • Doesn't charge origination fees

Cons

  • Only available to those with military affiliations
  • Must become member first to apply for loan
  • APR, terms and amounts depend on loan use

What to know

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Navy Federal Credit Union is a lender with competitive rates, flexible terms and a wide range of borrowing limits. It’s available only to current or former military members, as well as their families and household members. This credit union’s APR, terms and borrowing limits depend heavily on how you intend to use the loan. Navy Federal provides loans for personal expenses, home improvement projects and debt consolidation.

How to join Navy Federal Credit Union

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Navy Federal Credit Union allows the following consumers to become members:

  • Active duty or retired members of the armed forces
  • Delayed Entry Program
  • DoD Officer Candidate/ROTC
  • DoD Reservists
  • Veterans, retirees and annuitants
  • Household or family member of any of the above
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PenFed Credit Union: Best for good credit borrowers

8.99% - 17.99%

12 to 60 months

$600 to $50,000

None

Not specified

Pros

  • Option to apply with co-borrower
  • Offers small loans under $1,000
  • Flexible loan amounts and repayment terms

Cons

  • Borrowers with fair or bad credit won’t qualify
  • Must be member to receive loan
  • Can take up to two business days to receive loan funds

What to know

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PenFed Credit Union offers competitive APRs, terms and borrowing amounts. Conveniently, you can apply for a PenFed loan before becoming a member, though you’ll need to join if you ultimately want to accept a loan. PenFed loans can be used for a variety of reasons, including home improvement, transportation, medical and dental expenses, debt consolidation, vacations, taxes and much more.

How to join PenFed Credit Union

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PenFed Credit Union allows anyone to join. You just need to open a savings account with the credit union and provide a $5 initial deposit.

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First Technology Federal Credit Union: Best for fair or bad credit borrowers

Starting at 8.94%

24 to 84 months

$500 to $50,000

None

Not specified

Pros

  • Option to add a co-borrower
  • Flexible repayment terms and borrowing limits
  • Can easily become a First Tech member by joining partner organization online

Cons

  • May require membership fee to partner organization to join First Tech
  • Must be member to receive loan
  • Unclear personal loan credit requirements

What to know

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While First Technology Federal Credit Union doesn’t state its exact credit score requirements, they advertise that they offer loans to borrowers with a variety of credit backgrounds. On top of that, if you don’t have a great credit score, you can apply for a joint personal loan. While First Tech has fairly narrow criteria for most of its membership categories, the credit union does open eligibility to anyone who joins the Computer History Museum or Financial Fitness Association.

How to join First Tech Federal Credit Union

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If you’re looking to join First Tech, you’ll need to meet one of the following requirements:

  • Family or household members of current First Tech members
  • You or a family member work for a First Tech partner business or for the State of Oregon
  • Work or live in Lane County, Ore.
  • Belong to the Computer History Museum or the Financial Fitness Association
See Your Personalized Results

Alliant Credit Union: Best for same-day funding

Starting at 10.49% (with autopay)

12 to 60 months

$1,000 to $100,000

None

Not specified

Pros

  • Wide range of loan amounts
  • Offers debt protection plan in case of death, disability or unemployment
  • Same-day funding

Cons

  • No physical branches
  • Unclear credit requirements for personal loans
  • No option for cosigner or co-borrower

What to know

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Alliant Credit Union can provide same-day funding the very day you apply for a personal loan. With other lenders, it can take several days before your money is deposited. Another notable feature is the credit union’s optional debt protection plan, which helps cover your loan in the event of death, disability or involuntary unemployment. Unfortunately, if your credit isn’t so hot, Alliant doesn’t provide the option to bring in a cosigner or co-borrower to up your chances for loan approval. And while Alliant provides clear criteria regarding membership, it’s much more vague around its credit requirements for personal loans.

How to join Alliant Credit Union

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Alliant allows anyone to join the credit union if they become a member of Foster Care to Success, a nonprofit that aids teens in foster care who are close to aging out of the system. You can also join if you meet these requirements:

  • Live or work near Alliant’s corporate Chicago headquarters
  • Current or former employees of Alliant partner businesses
  • Immediate family members to current Alliant members
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If you need to borrow money, credit union personal loans can be an excellent choice because of their affordability and individualized customer service. Credit unions often restrict membership by location, employer or other factors, making them more personalized to your needs. Credit unions also cap personal loan annual percentage rates (APRs) at 18%, much lower than many lenders and banks.

On this page

How to get a loan from a credit union

The application process for getting a loan from a credit union varies by institution. There is, however, a general procedure credit unions generally follow.

  1. Determine your loan needs. Since lenders may limit how you can use the funds, it’s important to decide on your personal loan purpose. Some of the most common reasons for getting a personal loan include debt consolidation, refinancing credit cards and home improvement projects.
  2. Compare lenders. Don’t accept the first loan offer you get. Comparing various credit union personal loans can help you land lower APRs, better terms and even unique perks such as no-fee loans and autopay discounts.
  3. Become a credit union member. If you find a credit union that you can qualify with, apply to become a member. This may involve personal information like your address, Social Security number and credit profile. Depending on the credit union, you could also have to pay a membership fee or put money into an account.
  4. Check if you prequalify for a loan. Some credit unions allow you to see what kinds of rates, terms and amounts you may qualify for without any impact to your credit score. When you prequalify for a loan, you can shop around and compare various offers from other lenders.
  5. Verify your information. During the application process, the credit union likely asked you about where you live, your income and your employment status. At this stage, the credit union will want to verify the information you provided. You may need to provide documentation like bank statements, W-2s, pay stubs and a government-issued identification.
  6. Close on your loan. Once your credit union lender approves you for a loan, you’ll need to officially accept it by signing your loan contract. After this, your lender will send you your loan funds. This can take one to five days or longer, though some lenders offer same-day funding.

Credit unions vs. banks and online lenders

You can find personal loans at banks, credit unions and online lenders. Although credit unions require membership, their personal loans generally have more competitive rates than bank loans or loans from online lenders.

Financial institutionWhat it isProsCons
Credit unionMember-owned not-for-profit financial institution. Typically has fewer physical branches than banks and a variety of financial products
  • APR is capped at 18% — much lower some banks and online lenders
  • More forgiving loan requirements
  • Fewer fees
  • Must be a member to apply
  • May not have the latest tech offerings, like mobile apps
BankFor-profit institution that typically has physical branches and a variety of products to choose from
  • Name recognition and physical branches
  • Ability to bank and borrow with a single company
  • Tend to have the latest tech offerings, like mobile apps
  • May have higher rates compared to other options
  • Harsher requirements to borrow
  • May need to be a bank customer to qualify for personal loan
Online lenderFor-profit, online-only lenders with no physical branches and few financial products
  • Highly competitive loan rates and terms
  • Wide variety of lenders to choose from
  • No membership requirements
  • APR can be as high as 36%
  • No option to meet your lender face to face
  • May come with more fees than banks or credit unions

Pros and cons of credit union loans

Credit unions offer a wide variety of benefits to the members they serve, but they are not without their drawbacks.

ProsCons
  Credit union loans are capped at 18% APR, so you may find better offers with credit unions compared with other lenders  May be difficult to obtain a personal loan from a credit union if you don’t meet the membership requirements
  Aside from taking out a personal loan from a credit union, you can also bank with them  Membership process may require small deposit
  Since credit unions tend to be focused on certain communities or demographics, you may have better customer service  As opposed to a bank or online lender, credit unions sometimes have limited access to tech and mobile apps

Alternatives to personal loans

Personal loans offer a plethora of advantages and benefits for consumers, but if you’re looking to finance an expense, it’s not the only option worth considering.

  Credit cards

Credit cards give borrowers a revolving line of credit they can use as needed as opposed to a personal loan’s lump sum of cash. In particular, credit cards may also be a good option for those looking to earn rewards as they spend, like cash back or travel points.

Unlike personal loans, credit cards come with variable interest rates, so your minimum monthly payment may change each month. Since credit cards are typically unsecured, creditors will heavily consider your credit history before approving you.

  Buy now, pay later

Similar to personal loans, buy now, pay later (BNPL) works like an installment loan. While there are multiple types of BNPL plans, one of the most common types is the zero-interest “Pay in 4” plans. This is when your purchase is split into four equal payments that are repaid over a six-week period.

Not all BNPL sites report payments to credit bureaus, so if you’re looking to improve your credit profile, this may not be the best financing option to pursue.

  Personal line of credit

A personal line of credit works is a revolving form of credit. Unlike personal loans, this form of credit comes with variable interest rates, as well as draw and repayment periods. This means you only have a predetermined period of time to withdraw money and repay it.

Personal lines of credit aren’t commonly offered by lenders, but you may qualify for one if you have an established relationship with a bank or credit union.

  Payday alternative loan

A payday alternative loan (PAL) is a small loan — typically ranging from $200 to $1,000 — that is exclusively offered by credit unions as an alternative to predatory payday loans. While payday loans can come with nearly 400% APR, credit unions cap PALs at 28% APR.

PALs aren’t commonly offered by credit unions so you may have to shop around. Like with personal loans, you may have to become a member of the credit union before you can access loan funds.

How we chose the best credit union personal loans

We reviewed 10 of the most well-known credit unions that offer personal loans to determine the overall best four lenders. To make our list, lenders must offer competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their loans are easier to obtain and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier applications.
  • Fees: We prioritized lenders with no or low membership fees and no origination or annual fees.
  • Rates and terms: We ranked lenders higher if they had more competitive fixed rates and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: We considered each lender’s reputation and business practices. We also favored lenders that report to the major credit bureaus, offer reliable customer service and provide any unique perks to customers.

Frequently asked questions

Getting approved for a personal loan at a credit union can be challenging since you’ll need to meet criteria to both become a member of the financial institution and get a loan. If you don’t qualify with a credit union, consider applying for a personal loan with a bank or online lender.

Generally, you’ll want a credit score of at least 640 to qualify for a loan, but the credit score requirement will vary by lender. You can check your credit score for free with LendingTree Spring.

Credit union loans work like personal loans from a bank or online lender. The biggest difference is that you likely will have to become a member of the credit union first. You can check if you prequalify for a loan, then if you prefer its rates and fees, you can proceed with the loan process.