Best Credit Union Personal Loans in 2025
Credit union personal loans typically have lower rates, but you have to join to borrow
What is a credit union personal loan?
You may have heard from friends or family that credit unions are the best places to bank and get a personal loan. Depending on your needs, they might be right. Credit unions are member-owned nonprofits that are consumer friendly and offer low annual percentage rates (APRs). Membership also typically comes with benefits like discounts and financial planning.
However, you have to join the credit union to take advantage of these perks. Some credit unions have strict membership requirements (such as Navy Fed). Others (like PenFed) allow anyone to join.
Federal credit unions are regulated by a federal government agency called the National Credit Union Administration (NCUA). By law, federal credit unions cannot charge APRs higher than 18.00%.
State-chartered credit unions are regulated by the state in which they are located.
Employee credit unions are offered by businesses for their employees. Sometimes, non-employees can join if they are affiliated with a partner organization or live in a certain area.
Community development credit unions help low- and moderate-income communities access loans and banking products. These credit unions focus on helping their members borrow at a reasonable rate, gaining financial literacy in the process.
How to get a personal loan from a credit union
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Do the math
When used responsibly, a personal loan can be a great financial tool. Still, it’s important to only borrow what you need to avoid unnecessary interest. Use a personal loan calculator to figure out how much you can afford to borrow. -
Find credit unions that you’re eligible to join
You probably won’t be eligible to join every credit union you come across. Before checking out a credit union’s loan offerings, make sure you meet its membership requirements. You can usually find these in the FAQ section on the credit union’s website. -
Shop around and prequalify (when possible)
Not all credit unions allow you to prequalify for a personal loan. Prequalification lets you see what rates you might get without taking a hard credit hit. If you can’t prequalify, be sure to get your applications in within 14 days. If you do, only one hard hit will count against you. Try to get at least three offers so you can compare. -
Compare your offers
To get the cheapest loan, choose the one with the lowest APR. This measures how much your loan costs, including interest and fees.Also, pay attention to loan terms (or, how long you’ll have to pay back what you borrow). Paying off your loan faster usually means you’ll pay less overall interest. At the same time, a shorter loan term typically results in a higher monthly payment. -
Apply for membership and your loan
With some credit unions, you have to apply for membership before you can apply for your loan. Others will allow you to apply for membership and your loan at the same time. Either way, the application process should be straightforward, just follow the instructions the credit union provides.
Credit unions vs. banks vs. online lenders
Credit unions are great, but they aren’t right for everyone. Here’s what to consider when choosing between a credit union loan, a bank loan and an online loan.
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| Online lenders |
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Alternatives to credit union personal loans
Online personal loans can offer quick funding and are easier to qualify for if you have rocky credit. And if you have excellent credit, many online lenders have rates that are on par with banks and credit unions.
No matter where you get your loan, taking on debt is a major money move. It’s essential that you get more than one offer before signing on the dotted line. On LendingTree’s loan marketplace, you could get up to five online offers at once. It’s free, and checking rates won’t hurt your credit score.
Similar to personal loans, buy now, pay later (BNPL) works like an installment loan. There are multiple types of BNPL plans, but one of the most common is the zero-interest “Pay in 4” plan. With this, your purchase is split into four equal payments, which you’ll repay over a six-week period.
Not all BNPL sites and apps report payments to credit bureaus. If you’re looking to improve your credit score, this option might not be your best bet.
0% APR credit cards come with an introductory period that usually spans between six and 21 months. As long as you pay off your balance by the time your introductory period ends, you won’t pay any interest.
Beware, though. Making a late payment could cause the credit card company to put a premature end to your introductory period. Also, unlike a loan (which comes as a lump sum of money), you can use a credit card as much as you want, up to your spending limit. This might lead you to overspend.
Frequently asked questions
It can be. Compared to banks and online lenders, credit unions usually offer lower rates. In fact, federal credit unions aren’t allowed to charge more than 18.00% APR.
One thing to consider, though, is time. If you aren’t already a member, you’ll have to join before you can get a loan. This could be a cause for concern if you need money fast.
Every credit union has its own personal loan requirements, and these are rarely disclosed. You’ll need to prequalify or apply to see if you’re eligible.
PenFed is the easiest credit union to join on this list. It doesn’t require you to have any specific affiliation to become a member. If you don’t meet Alliant’s, BECU’s or First Tech’s traditional membership guidelines, you just need to make a small donation to a partner charity or organization.
Usually, you need a credit score of at least 640 to get an affordable personal loan. If your score is lower than that, explore fair credit and bad credit loans. First, figure out where you stand by checking your credit score for free with LendingTree Spring.
Our methodology
According to our systematic rating and review process, the best credit union loans come from Alliant Credit Union, Boeing Employees Credit Union, First Tech Federal Credit Union, Navy Federal Credit Union and PenFed Credit Union.
We reviewed more than 16 lenders to determine the overall best five credit union personal loans. To make our list, credit unions must offer personal loans with competitive APRs. From there, we prioritize lenders based on the following factors:
Accessibility. Credit unions are ranked higher if their personal loans are available to more people and require fewer conditions. This may include easy-to-meet eligibility requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms. We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
Repayment experience. For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.