Credit Union Loans Offer Flexible Terms and Low Rates
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Credit Union Loans Provide Low Rates and Flexible Terms
Credit union loans might have rates and terms that make them ideal for both fair and bad credit members.
Last updated on Dec 1, 2022
A majority of the products we feature are from our partners who compensate us. This influences which products we review as well as the place and way the product appears on the page. However, this does not influence our evaluations. Our opinions are entirely our own. Here is a list of and .
Your local credit union should be among your first stops when you’re seeking to borrow money particularly in the event that you are in the middle of a bad or fair credit score (689 or lower). Personal loans generally have advantages over those of other lenders, including:
Typically , interest rates are lower.
Smaller starting loan amounts.
Terms that are more flexible.
Loan officers willing to consider other factors that go beyond your credit score.
What are the ways credit union loans function?
Credit unions are not-for-profit financial institutions that cater to members who reside, study, work or practice religion in a certain region. Every credit union is managed by its members, who choose volunteer board members to manage the organization.
If you meet the credit union’s requirements then you are eligible for membership online, typically. You might be required to open an account that requires a minimum deposit of $5 to $25. After you have been approved for membership you are able to use banking services, such as personal loans.
If you’ve applied for a loan and get accepted, you’ll be able to receive the funds to your account. You’ll later pay your credit union with fixed monthly installments, with terms that range from one to seven years.
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Best credit union personal loans for 2023
If you don’t have a neighborhood credit union, nationwide options are readily available. The credit unions below lend across the 50 states of America and Washington, D.C., and you can apply for membership on the internet.
Alliant: Best for fast financing
Joining Alliant is free and everyone is eligible by joining Foster Care to Success, the nonprofit organization that helps foster children across the United States. Alliant will pay the $5 membership fee to FC2S on your behalf.
Why it stands out: Alliant provides a variety of personal loan amount and can approve the majority of applicants within the same day that they apply. Once you sign on the loan papers, Alliant can also provide immediate loan approval.
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PenFed is a great option for co-signing and joint loan options
Although PenFed is a popular institution for serving military members, anyone can join by funding the savings account by making an initial deposit of just $5.
What makes it stand out is that PenFed offers co-signed and to personal loan customers. By adding someone with an improved credit score or income that is higher on your loan application you could increase your odds of being accepted. The co-borrowers are equally accountable for missed payments, but in a co-borrower arrangement, only the principal applicant is able to access funds from the loan funds.
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First Tech: Best for debt consolidation
First Tech serves mostly tech companies and their employees with personal loans that range from $5,000 to $50,000.
The reason it stands out is First Tech is a good choice for consolidating debts into a personal loan, thanks to its broad range of terms, amounts and ability to send funds directly to creditors. Although direct payments to creditors aren’t required to get the debt consolidation loan this means that it’s not necessary to transfer the money.
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Navy Federal: Best for military personnel
To be eligible to join Navy Federal, you must be active in either retired or veteran of any military branch and be a Department of Defense employee, contractor or retiree, or a household or family spouse of a servicemember.
What makes it stand out Apart from Navy Federal’s efforts to help military personnel as well as their family members, in the event that you’re active-duty or retired you’re eligible for the benefit of a 0.25 percentage point discount on the personal loan’s annual interest rate. This lowers the overall interest you’ll pay on the loan.
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Personal loan rates
The rates for personal loans will depend the credit scores of your the credit history, income and the amount of debt.
Rates may also differ by type of credit union federally chartered vs. state-chartered.
Federal credit unions cap annual percentage rates at 18 percent. Your credit union may require an upfront fee, which isn’t included in the APR.
As of September 2022, the average interest rate for 3-year credit union federal loan was 9.15%, according to data provided by the National Credit Union Administration.
Lender
APR rates that are typical
The amount of the loan
The ratings of NerdWallet are based on the opinions of the editorial staff. The scoring formula is based on factors we consider to be consumer-friendly, including impact to credit score, rates and fees, customer experience and ethical lending practices.
on NerdWallet’s secure website
6.24% – 27.24% .
From $1,000 to $50,000.
NerdWallet’s ratings are evaluated by our team of editors. The scoring formula is based on the factors we believe to be friendly to consumers, such as the impact on credit score, fees and rates as well as the customer’s experience and ethical lending practices.
on NerdWallet’s secure website
7.74% – 17.99% .
From $600 to $50,000.
NerdWallet’s ratings are determined by our team of editors. The scoring formula takes into account the factors we believe to be friendly to consumers, such as the impact on credit score, rates and fees as well as the customer’s experience and ethical lending practices.
on the secure website of NerdWallet.
6.70% – 18.00% .
$500 to $500 to.
The ratings of NerdWallet are based on the opinions of the editorial staff. The scoring formula takes into account the factors we believe to be a good choice for consumers, such as the impact on credit scores rates and fees, customer experience and responsible lending practices.
on NerdWallet’s secure site
7.49% – 18.00% .
From $250 to $50,000.
How to get a loan from the credit union
A poor credit score by itself will not necessarily prevent you from getting a loan from a credit union because the credit union will take into account your entire financial situation which includes your credit history and status as a member of the credit union, when evaluating the loan application. But a great score will get you a lower rate than someone with bad credit, so it pays to before applying for a loan.
Since credit unions are available in a variety of sizes, the process of applying, approval criteria as well as rates and other aspects of the personal loan vary. Many credit unions permit online loan applications. These generally require personal information and contact details, the applicant’s Social Security number, employment and income information, as well as any debts.
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Local or smaller institutions may require that you make an application in person, or end the loan in a branch.
Credit union vs. online lender
Online lenders provide loans across the credit spectrum They’re a good alternative for bad-credit borrowers (629 credit score or less) who need a personal loan.
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Credit unions can conduct one of these checks — which could cause a small temporary decrease on your score -the majority of online lenders conduct credit checks using soft methods to see if you are eligible for a loan.
Online lenders also provide online applications which don’t require you to visit a branch , and usually will fund loans quickly.
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But loans that are provided by credit unions are typically cheaper than those from online lenders, especially for borrowers who have good or poor credit scores. Credit unions that have fair credit scores received an average APR of 20 percent, based on the most recent data on offers that are anonymized from customers who were pre-qualified through NerdWallet’s market for lenders.
Lender
Min. credit score
Typical APR range
Loan amount
The ratings of NerdWallet are based on the opinions of the editorial staff. The scoring formula considers aspects we believe are beneficial to the consumer, such as impact on credit score, fees and rates as well as the customer’s experience and responsible lending practices.
on the website of Upgrade.
560 .
6.50% – 35.99% .
$1,000 to $5,000.
NerdWallet’s ratings are evaluated by our editorial team. The scoring formula considers aspects we consider to be beneficial to consumers, including the impact on credit score, fees and rates, customer experience and ethical lending practices.
on Upstart’s website
None.
8.49% – 35.97% .
From $1,000 to $50,000.
The ratings of NerdWallet are based on the opinions of our editorial team. The scoring formula considers factors we consider to be beneficial to consumers, including impact to credit score rate and fees, customer service and ethical lending practices.
on the website of LendingClub.
600 .
8.30% – 36.00% .
Between $1,000 and $40,000.
NerdWallet’s ratings are determined by our team of editors. The scoring formula takes into account aspects we believe are consumer-friendly, including impact to credit score, fees and rates customers’ experience, and ethical lending practices.
on the Best Egg’s website
600 .
8.99% – 35.99% .
$2,000 to $50,000.
NerdWallet’s ratings are evaluated by the editorial staff. The scoring formula considers aspects we believe are consumer-friendly, including impact to credit score, rates and fees customers’ experience, and responsible lending practices.
on the Universal Credit website.
560 .
11.69% – 35.93% .
$1,000 to $5,000.
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Next steps
When you’re an existing member, and are able to withstand a short-term impact on your credit score A credit union could get you the cheapest loan. NerdWallet recommends the comparison of loans from different lenders.
You can pre-qualify for online lenders through NerdWallet and then compare your estimated rate with one from your local credit union.
Check if you are pre-qualified for personal loan – without affecting your credit score
Just answer a few questions to receive customized rate estimates from several lenders.
Loan amount
on NerdWallet
About the author: Jackie Veling covers personal loans for NerdWallet.
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