Compare top credit unions for personal loans
You will need to become a member of a credit union in order to access its financial products. However, membership requirements aren't always stringent, and there are credit unions that make it easy to join and apply for financing.
Read on to learn about the top credit unions for personal loans, how their financing works and what you need to qualify.
To make our top choices, our research team evaluated 29 credit unions that offer personal loans. We selected six based on factors that are important to borrowers, including minimum required credit scores, repayment terms, maximum loan amounts, annual percentage rates (APRs) and fees.
Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may affect the order in which companies appear.
- Minimum credit score required
- Undisclosed
- Maximum loan amount
- $50,000
- Term length
- 12 - 60 months
- Minimum credit score required
- Undisclosed
- Maximum loan amount
- $50,000
- Term lengths
- 24 - 84 months
- Minimum credit score required
- Not specified
- Maximum loan amount
- $50,000
- Term length
- Up to 15 years
- Minimum credit score required
- Undisclosed
- Maximum loan amount
- $25,000
- Term length
- 12 - 60 months
- Minimum credit score required
- 640
- Maximum loan amount
- $35,000
- Term length
- 12 - 84 months
- Minimum credit score required
- None
- Maximum loan amount
- $50,000
- Term length
- 24 - 60 months
Pros and cons of using a credit union for a personal loan
For the most part, the benefits of getting a credit union personal loan vary based on the loan offer itself. For example, a personal loan from a credit union is only better than funding from a traditional bank if it comes with a lower interest rate, a better monthly payment or some other benefit you can't get elsewhere.
However, Laura Sterling, the vice president of marketing at Georgia’s Own Credit Union in Atlanta, says that credit unions are more likely to offer lower-cost services and better interest rates than traditional lenders. This is mainly due to the fact that credit unions are not-for-profit entities, and that they return their earnings to their members in the form of better rates and fewer loan fees.
"On the contrary, banks return their earnings to stockholders," said Sterling.
Credit unions often charge lower fees and interest rates than traditional banks.
Earl Young, the chief lending and credit officer at Broadview Federal Credit Union in New York, adds that credit unions also take the time to understand their members' needs and offer flexible underwriting standards that make it easier to qualify. In fact, Young says credit unions structure loan product offerings to accommodate a broad band of credit scores at very reasonable terms and rates.
The obvious downside of credit union personal loans is that some credit unions have strict requirements for membership. Others that do allow anyone to join tend to have limited physical locations nationwide, or even just in one state or a part of one state.
That said, Young notes that joining a credit union may be easier than you think and that the best way to ascertain eligibility is to call and ask any credit union that interests you.
"The qualification process by design is meant to be straightforward, accommodating and very timely," he said.
How to apply for a personal loan from a credit union
Applying for a personal loan from a credit union is a lot like applying with a regular bank or an online lender. The catch is, you may have to apply for membership before you apply for a loan if you're not a credit union member already.
That said, some credit unions make the process of applying for membership and funding fairly hassle-free. A handful of credit unions also let you "check your rate" before you apply, which gives you the chance to gauge your approval odds without putting a hard inquiry on your credit report.
Either way, you can expect to provide the following information when you apply for a credit union personal loan in person or online:
- Full name and address
- Type of application (individual or joint)
- Social Security number
- Employment details
- Income
- Desired loan amount
- Desired repayment term
Many credit unions make it possible to get funding as soon as the next business day after your loan application is approved, although it's possible you'll need to supply additional information or documentation to move the process forward.
Types of credit union personal loans
Credit unions offer a range of personal loan products to meet different consumer needs. The types of credit union personal loans you can access include the following.
- Unsecured personal loans. This type of loan can be used for a variety of purposes, including home improvement, medical expenses, major purchases, vehicle repairs, debt consolidation and business startup costs. Because it is unsecured, there is no collateral required (like your house or car), so you may need better credit to qualify.
- Secured personal loans. This type of loan is secured by some form of collateral. Credit unions may offer savings secured loans and certificate secured loans, where your savings account or certificate of deposit (CD) secures your loan but continues to earn interest while you pay off your loan balance. This can help you build credit.
- Home improvement loans. Typically unsecured, this specialized personal loan is geared toward homeowners. You can use the money you borrow for all kinds of home improvements.
- Debt consolidation loans. A debt consolidation loan allows you to roll payments to multiple creditors into one regular payment. Your credit union may be able to help you access a lower interest rate by combining your debt.
- Personal lines of credit. This option sets a maximum amount you can draw from on demand, like using a credit card. You only pay interest on the money you use. A personal line of credit can be a good option for borrowers seeking a flexible rainy day fund, but it may come with variable interest rates.
FAQ
Is it easier to get a personal loan from a bank or a credit union?
Credit unions tend to be more flexible when it comes to minimum requirements to qualify for their financial products. For example, credit union personal loans are often available to applicants with a broader range of credit scores.
Can a credit union deny my personal loan application?
Yes, credit unions can deny your personal loan application for any number of reasons. For example, you can be denied based on having insufficient income or poor credit.
Can I get a personal loan from a credit union if I have bad credit?
Personal loans from credit unions can be available to consumers with bad credit in some cases. However, consumers with subpar credit can expect to pay higher interest rates and have fewer loan options overall.
How long does it take for a credit union to approve a personal loan?
Some credit unions may approve a personal loan as soon as the same or the next business day following the application, although your individual results may vary.
Bottom line
The best credit union personal loans come with low interest rates, flexible repayment terms and no hidden fees to worry about. However, while some credit unions allow membership to everyone, others only accept members who fit within certain groups.
With that in mind, you'll want to look over the credit unions on this list to see which ones have membership requirements you can meet. From there, take the time to compare loan options until you find a lender that offers a loan amount and monthly payment that suits your needs.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- National Credit Union Administration, "What Is a Credit Union?" Accessed Jan. 27, 2026.
