Best Credit Unions Personal Loans, April 2025

Credit unions have lower rates for personal loans than banks, on average, and less strict eligibility requirements. These qualities can make them a go-to source for personal loans — as long as you can qualify for membership. Fortunately, there are many excellent credit unions that make it easy to become a member. And we’ve curated a list of the ones with the best personal loans.

Compare personal loan rates

Best credit unions for personal loans

Best overall 
First Tech Federal Credit Union

• Starting APR: 7.89%
• Origination fee: None
• Loan amounts: $500 to $50,000
• Repayment terms: 6 months to 7 years
• Funding time: Typically within 1 business day

First Tech has the lowest starting rates on our list, which makes it a top choice if you have excellent credit. First Tech also stands out with repayment terms of up to seven years and an optional 45-day deferral on your first payment.

Its personal loans can be used for debt consolidation, home improvements, milestone events (like weddings or funerals), emergencies, and vacations.

While membership is geared toward people who work in the tech industry, there are several ways to gain access to membership, such as working for one of the 900-plus partner companies, including Amazon and Microsoft, or having someone in your family or household who is already a member. You can also join by becoming a member of the Computer History Museum or the Financial Fitness Association.

First Tech has 36 branches across eight states and also offers online banking and loan services. If you want in-person service, check the map of locations on the First Tech website to see if there’s a branch in your area.

Best for easy access
PenFed Credit Union

• APR range: 8.99% to 17.99%
• Origination fees: None
• Loan amounts: $600 to $50,000
• Repayment terms: 1 to 5 years
• Funding time: As soon as the next day

PenFed offers low-rate personal loans with no origination fees that can be used for a wide range of purposes, including debt consolidation, credit card refinancing, home improvements, medical expenses, family planning, weddings, and vacations. Though you'll need to become a member to receive a loan, membership is open to everyone. In fact, you can apply for a loan as a non-member. If approved, PenFed will open a savings account for you, pre-loaded with $5 to establish membership. 

If you don't have a FICO score above 700, you may not qualify.

PenFed is the second-largest federal credit union in the U.S., with branches nationwide. It offers live chat and an entirely online loan application process.

Best for large loans
Alliant Credit Union

• Starting APR: 8.99%
• Origination fees: None
• Loan amounts: $1,000 to $100,000
• Repayment terms: 1 to 5 years
• Funding time: As soon as the same day (when we checked, the application portal noted that processing times are delayed due to high volume)

Alliant Credit Union offers low-rate personal loans with no origination fees that can be used for debt consolidation, home expenses, or emergencies. Rates start at 8.99% APR for one-year loans and up to 11.99% for five-year loans. You’ll need excellent credit to be approved for the lowest rates. If you need a loan larger than $50,000, Alliant is one of two lenders on this list to offer that. 

There are several pathways to becoming an Alliant member. One option open to virtually anyone in the United States is to become an Alliant Credit Union Foundation digital inclusion advocate for $5 (Alliant will cover the fee on your behalf).

Alliant offers an autopay discount. Also, you may be eligible for a hardship program if you’re struggling to make personal loan payments. 

Best military loans
Navy Federal Credit Union

• Starting APRs: 8.99% (unsecured); 1.25% (Career Kickoff Loans)
• Origination fees: None
• Loan amounts: $250 to $50,000 (up to $150,000 for home improvement loans)
• Repayment terms: 6 months to 7 years (15 years for home improvement loans)
• Funding time: Typically within 1 business day

Navy Federal offers ultra-low rate loans to military members and their families. In addition to standard personal loans, Navy Federal offers:

• Career Kickoff Loans with rates as low as 1.25% APR to junior and senior students at U.S. military academies. ROTC and OCS/OTS officers and candidates, as well as appointed warrant and Navy select limited duty officers, are eligible for loans at 2.99% APR.
• Home improvement loans with loan available loan amounts up to $150,000 and repayment terms up to 15 years.

To be eligible for membership at Navy Federal Credit Union, you or someone in your household needs to have ties to the armed forces, Department of Defense, or National Guard. 

Methodology

To choose the best credit unions for personal loans, we looked for those with a national presence or established online footprint, then compared rates, available loan amounts, repayment terms, funding times, fees, loan uses, perks, and which credit unions make membership easy. Your local community credit union may also serve your needs, so be sure to use the NCUA's credit union locator tool to find options in your area.

How to compare personal loans

Not all credit unions let you prequalify for a personal loan, but if yours does, prequalify first. Prequalification can give you customized personal loan quotes based on a soft credit pull, which won’t hurt your credit. You can see the APR, loan terms, and loan amount you might qualify for. 

Here’s what to compare when choosing between credit union personal loans:

• Membership and eligibility: Whether you can become a member determines whether you can apply for a personal loan from a particular credit union. But most have minimum credit score requirements and may require a minimum income as well. Check to make sure you meet eligibility requirements before applying.
• APR: The annual percentage rate (APR) accounts for any upfront fees and the loan’s interest rate. Since credit unions don’t typically charge upfront fees, the APR and interest rate are often the same. Use this number to compare how much each loan costs when you prequalify.
• Repayment term: The repayment term you choose impacts the size of your monthly payment and your overall interest costs. For lower monthly payments, choose a longer term. For lower interest costs, choose a shorter term.
• Loan amount: Some credit unions offer different loan amounts for different loan purposes — commonly home improvement loans have higher maximum amounts.
• Funding time: Most credit unions can fund loans the same or next business day, once you’re approved.
• Fees: Credit unions tend to charge fewer fees than banks and online lenders and often don’t charge an origination fee. But it’s worth confirming that.
• Allowed loan purposes: Most credit unions, including the ones above, allow you to use your loan for a wide range of purposes. Still, make sure the credit union will approve your loan purpose before applying.
• Other benefits: Some credit unions offer hardship assistance, educational resources, discounts, or other benefits. If you're applying for membership, you might also want to evaluate the other banking and loan products the credit union offers and factor your future needs into your decision.

What are credit union personal loans and how do they work?

Credit union personal loans are just like other personal loans, except they may have lower rates, especially if you have good credit. However, you generally will need to be or become a member of the credit union to qualify for a personal loan. And credit unions tend to have lower minimum loan amounts compared to banks and fintechs. For instance, if you need a loan of less than $1,000, PenFed, Navy Federal, and First Tech are all options. 

Personal loans are installment loans with a fixed interest rate. With personal loans, you receive a lump sum of money, often deposited into your bank account, that you pay off in regular, often monthly deposits. The amount of your payment won’t change. Personal loan repayment terms typically range from one to seven years; amounts range from under $1,000 to over $50,000. But what you can qualify for depends primarily on your credit score, income, and current debt.

You’ll need to specify what you’ll use the loan for when you apply, but credit unions tend to allow for a wide range of loan uses, including debt consolidation, credit card refinancing, home improvements, medical expenses, event planning, vacations, and more. 

Payday alternative loans

Payday alternative loans (PALs) are offered exclusively by federal credit unions and work similarly to personal loans but are not the same. They’re designed for people who might struggle to be approved for a regular personal loan due to bad credit. As such, they have higher rates than personal loans from credit unions, plus smaller loan amounts and shorter repayment terms. 

• Repayment terms: up to 12 months
• Loan amounts: up to $2,000
• APR: 28%
• Credit check: Typically, no

Average credit union personal loan rates

In the last quarter of 2024, the average interest rate for a 36-month unsecured personal loan from a credit union was 10.80%, compared to 12.03% at banks. 

Credit union personal loans typically also have lower maximum interest rates than banks since they're limited by the NCUA's 18% rate cap. In most cases, banks aren't subject to interest rate caps, but some banks choose to cap interest rates on personal loans at around 25%.

Credit unions vs. banks vs. online lenders

As noted, credit unions tend to have lower interest rates, on average, than banks. They also tend to have lower interest rates and fewer fees than online lenders, especially if you don’t have good credit. APRs from online lenders range from around 7% to 36%, while credit union APRs top out around 18%.

However, it may be harder to prequalify with a credit union compared to a bank or online lender, which could make it harder to compare rates and terms you might qualify for. 

What can I use a credit union loan for?

You can use a personal loan from a credit union for almost any purpose, from moving expenses to home improvement to veterinary care, though credit unions typically prohibit borrowers from using the funds to pay for postsecondary education.

In addition to unsecured personal loans, many credit unions also offer low rates on auto loans and other secured loans, such as:

• Boat loans
• Motorcycle loans
• Land loans
• Used-car loans
• RV loans

Related: What Can't You Use a Personal Loan For?

How to apply for a credit union loan

You can apply for most credit union loans online. While the process of getting a personal loan varies from one credit union to the next, you can generally expect the following steps:

1. Apply for membership: If you're not already a credit union member, you'll need to be eligible for and establish membership. You may be able to do this with your personal loan application or may need to apply separately. In addition to meeting the eligibility requirements for membership, you may also need to open and fund a checking or savings account with a small deposit. 
2. Prequalify: Some credit unions can provide an interest rate estimate with only a soft credit pull, which won't impact your credit score. It's a good idea to check your rate before formally applying. Remember, prequalification is an estimate and not an official offer of credit. Rates may vary once you formally apply. Compare the prequalified rate to estimates from a few online lenders.
3. Complete the application: If you prequalify with the lender of your choice, fill out the full application. This typically involves providing supporting documentation (like proof of income) and authorizing a hard credit check, which can cause your credit score to temporarily decrease by a few points.
4. Review and sign the loan agreement: If approved, review your final rate and loan details, such as the amount and schedule of monthly payments. Sign the documents if everything looks correct to initiate the transfer of funds.

Alternatives to credit union personal loans

• Online personal loans: Another option is to get a personal loan from an online lender. You might have a better chance of qualifying with an online lender if you have bad credit. You might also get a lower rate if you have excellent credit.
• Bank loans: In some cases, personal loans from banks may be available in larger amounts than from many credit unions. For example, the online lender-bank hybrid SoFi and traditional bank Wells Fargo offer personal loans up to $100,000. The downsides may include higher interest rates (on average) and stricter eligibility requirements.
• Payday alternative loans: If you sign up to be a member of a credit union only to find you can't qualify for a personal loan, you might have luck with a PAL I or PAL II loan. The maximum amount you can borrow is $2,000.
• Secured loans: Secured loans require you to pledge an asset as collateral, which the lender can take if you fail to repay. Secured loans may be easier to qualify for and offer lower interest rates. Many credit unions offer a variety of secured loans, such as savings- or stock-secured personal loans and home equity loans, which can also be used for a variety of purposes. 
• Credit cards: If you need to pay off debt or make a large purchase, you may be able to take advantage of a 0% introductory APR offer for up to 21 months on new purchases or balance transfers, especially if you have good credit. Just remember that the card’s regular APR goes into effect after the introductory period, and some cards charge a balance transfer fee (typically 3% to 5% of the amount transferred).