Which credit union offers the best personal loans? Personal loans are a good way to get quick money to fund large expenses. They can be used for almost any reason, including medical bills, a home renovation, debt consolidation, vacation, and many more. Personal loans are usually unsecured, and borrowers must repay regularly plus interest over a fixed period of time.
In recent times, there are various ways to get personal loans. Banks, online lenders, and credit unions offer convenient ways to qualify and apply for a personal loan. In this article are the best credit unions that offer personal loans.
6 Best Credit Union Personal Loans
When compiling this list of the best credit union personal loans, we evaluated different lenders. We looked at important factors such as the loan amounts, interest rates, term lengths offered, and fees. And other features like autopay, customer service, discounts, and how quickly you can get the funds. Check out our recommendations below:
1. Navy Federal Credit Union
Navy Federal Credit Union offers personal loans starting at just $250, making it ideal for those needing a small amount of money. They also have a minimum repayment term of six months, which is shorter than many other lenders. This can save you money on interest, though your monthly payments might be higher.
To qualify for a loan, you need to be an active or retired military member, a Department of Defense employee or retiree, or a family member of someone who fits these categories. Navy Federal doesn’t charge origination fees or prepayment penalties. However, you need to keep in mind that there is a $29 fee for late payments.
2. Patelco Credit Union
With Patelco Credit Union, you can borrow up to $100,000 and choose loan terms that fit your needs, with loan amounts starting as low as $300.
This credit union stands out with its low minimum APR and no origination fee. Plus, their LevelUp program rewards good payment behavior. Make 12 on-time payments, and your interest rate can drop by 0.5%, up to three times for a total reduction of 1.5%.
To get a loan, you need to join Patelco Credit Union, but anyone can join. Unlike other credit unions that restrict membership based on location or employer, Patelco allows you to join by becoming a member of the Financial Fitness Association, and they cover your first year’s $8 membership fee.
3. Alliant Credit Union
Alliant Credit Union offers personal loans up to $50,000, with a minimum amount of $1,000, which might not suit those needing less. However, Alliant provides flexibility and convenience, often depositing funds into your account the same day if all documents are in order. Alternatively, they can mail you a check.
Alliant’s APRs are tiered based on the repayment term. A 12-month loan can have an APR as low as 6.24%, 24-month loans start at 7.24%, 48-month loans at 9.24%, and 60-month loans at 10.24%. Your credit score also influences the rate, with higher scores qualifying for lower APRs.
4. PenFed Credit Union
PenFed Credit Union offers some of the lowest personal loan APRs. There are no origination fees, and you can borrow even small amounts. Membership is open to everyone.
Even if you don’t have a great credit score, you can apply with a co-signer. PenFed is well-regarded and has strong customer reviews, making it a trustworthy choice for a loan.
5. First Tech Credit Union
First Tech Credit Union offers long repayment terms of up to seven years, allowing borrowers plenty of time to repay their personal loans. You can borrow from $500 to $50,000, offering flexibility for both small and large purposes.
To apply, you need to be a First Tech member. You can join if a family or household member is already a member, if you or a relative works for a company on First Tech’s partner list, or for the state of Oregon. If you live or work in Lane County, or if you join the Financial Fitness Association or the Computer History Museum (with an $8 fee).
First Tech also allows you to defer your first payment for up to 45 days after receiving your funds, which can be helpful if you need more time before starting payments. However, interest will continue to accumulate during this period.
6. Lake Michigan Credit Union
Lake Michigan Credit Union stands out for its competitive APR and low minimum credit score requirement of 620, making it a solid option for those looking to build their credit. It reports to all three credit bureaus, helping improve your credit score with timely payments.
Although its repayment terms are less flexible and the maximum loan amount is about $25,000, it’s a good choice for those needing a smaller loan without a high credit score.
FAQs
What are the benefits of getting a personal loan from a credit union?
Some of the benefits of a credit union personal loan are a lower interest rate, good customer service, and flexible repayment needs. Credit unions are based on offering amazing perks to meet members needs.
How much personal loan can I borrow from a credit union?
Just so you know, the amount you can borrow depends on the credit union you go for. However. They usually range from $1,000 to $50,000. Keep in mind that some credit unions may offer higher limits to members with strong credit histories.
How long do credit unions approve a personal loan?
Depending on the credit union’s policies and your application, approvals can range from a few days to several days.
