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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.
We've gathered the best lenders for people with a range of credit scores, with a specific focus on finding credit unions that offer competitive rates.
Best Credit Union Personal Loans of 2024 Summary
- Best for short term lengths: Service Credit Union Personal Loan
- Best for co-borrowers: PenFed Credit Union Personal Loan
- Best for same-day approval and funding: Alliant Credit Union Personal Loan
- Best for good credit: Connexus Credit Union Personal Loan
- Best for small loan amounts: Navy Federal Credit Union Personal Loan
- Best for long term lengths: First Tech Personal Loan
Compare Personal Loan Rates
Top Credit Union Personal Loans Comparison
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.
Best Credit Union Loans for Short Term Lengths
Service Credit Union Personal Loan
Service Credit Union has some of 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
Best Credit Union Loans for Co-Borrowers
PenFed Credit Union Personal Loan
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
Best Credit Union Loans for Same-Day Approval and Funding
Alliant Credit Union Personal Loan
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
Best Credit Union Loans for Good Credit
Connexus Credit Union Personal Loan
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
Best Credit Union Loans for Small Loan Amounts
Navy Federal Credit Union Personal Loan
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
Best Credit Union Loans for Long Term Lengths
First Tech Personal Loan
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
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:
| Lender | BBB Grade |
| Alliant Credit Union Personal LoAN | A+ |
| Navy Federal Credit Union Personal Loan | NR |
| First Tech Personal Loan | F |
| 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 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.
Credit Union Personal Loan FAQs
Do I have to be a member to get a credit union personal loan?
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.
How are credit union personal loans different from online personal loans?
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.
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.
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. 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 >>
Loans Reporter
Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe.
Compliance Associate
Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, whichensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team.
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