The December 2022 Best Credit Unions for Personal Loans

Insider’s experts select the best products and services for you to make smart financial decisions.here’s how). In some cases, we may be paid a commission our partnersHowever, our opinions are not influenced by these offers. These offers are subject to terms.

The current maximum APR credit unions can charge on most loans, is 18%. National Credit Union Administration.

While you can get a loan personal from many types of institutions and credit unions, you might prefer to use one.

Compare personal loans

A personal loan from a credit cooperative offers many benefits over online lenders or banks. The NCUA caps the maximum interest rate, so if your credit is not in the best shape you might be able to get a personal loan from a credit union. online personal loan lenders. Some of our top picks have lower minimum loan amounts than other lenders. This could be helpful if your only need is for a little cash.

Personal loans can be used for a variety purposes. debt consolidation, home improvementsMajor purchases and, To get a personal loan from one of these credit unions, you will need to join. However, there are many great options to help you start your search.

Alliant Credit Union

Most cases you can get loan approval and financing the same day. AlliantLenders can get approvals faster than competitors, thanks to this. The lender does not charge origination fees and has no late payments penalty, which will lower the overall cost for your loan. 

You can also purchase debt coverage for your loan that covers death and disability as well as involuntary unemployed. This protects you from unexpected events that could cause you to be unable repay your loan. For every $1,000 of outstanding loan balance, debt protection costs $1.99 per month.

Check Rates with Alliant >>

Navy Federal Credit Union

Navy Federal Credit UnionOffers loans starting at $250, which is the lowest minimum loan amount of all the lenders we have on our list. Navy Federal’s personal loans could be a good alternative to payday loans with lower APRs. While the lender does not require a minimum credit score, eligibility requirements for personal loans will likely be higher than those required by payday lenders. 

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First Tech Federal Credit Union

A loan can be obtained for as low as $500 First Tech Federal Credit UnionThis is useful if your goal is to get a small amount of money and avoid the high APRs associated with payday loans. First Tech loans are free of application, origination, annual fees, or penalties for early repayment. 

First Tech has the longest maximum loan term of any lender we list, and it allows you to spread your payments over a longer time. You can split your payments over seven-years, which will reduce your monthly costs but increase your interest rate.

Check Rates with First Tech >>

Pentagon Federal Credit Union

Pentagon Federal Credit UnionIt has the shortest minimum repayment terms of any lender on our roster. PenFed has one of the lowest APRs in credit unions.

Personal loans from the company have no origination fees or prepayment penalties. If your co-borrower has good credit, you may be eligible for a lower interest rate. 

Check Rates with PenFed >>

Service Credit Union

We’ve selected the top lenders from all of them. Service Credit UnionThe shortest minimum repayment term length. This could be a good option if your monthly payments are larger and you want to lower the total interest. Service’s personal loans could be a good alternative to payday loans with lower APRs.

Check Rates with Service >>

Connexus Credit Union

Connexus Credit UnionThis lender is the only one on our list that has a minimum credit rating requirement. You can still qualify for this personal loan lender if you have good credit but your credit may not be as good. 

Connexus not only has the lowest minimum APR of any of the credit unions we list, but also has a maximum loan amount that is the lowest of any pick. Connexus is a good option if you have a good credit score and you need a modest amount of cash.

Check Rates with Connexus >>

Other personal loans that we considered

• BethPage Federal Credit Union personal loans. BethPage has a low minimum APR of 6.99%, and flexible loan terms ranging from one to seven. BethPage allows you to borrow up $15,000, which is a significantly lower limit than any of our top picks. 
• Wings Financial Credit Union personal loans. Wings Financial’s minimum APR is 8.99%. This is higher than any other lender on our list. The credit union offers only three repayment terms: four-, five-, and six years. 
• Consumers Credit Union personal loans. While you can take out up to $100,000 with Consumers Credit Union — a higher maximum than any of our top credit unions — the lender has a high minimum APR of 8.49%.

Which lender is the most trustworthy

We have compared the financial statements of each institution. Better Business BureauScore will help you make the best choice when choosing a personal loan from your credit union. The BBB assesses businesses based upon factors such as truthfulness in advertising, transparency about business practices, responsiveness to customer complaints, and responsiveness. Here’s how each company scored:

The BBB rates most of our top picks as A+, with the exceptions of First Tech Federal Credit Union (and Navy Federal Credit Union). Remember that a high BBB rating does not guarantee a good working relationship with a lender. It is important to continue researching the company and talking to family and friends who have used it.

First Tech is available through the BBB F gradeThere were 25 complaints against the company, including two unresolved ones. Navy Federal is not rated, as it is currently responding to previously closed grievances. 

How we chose the top credit unions for personal loans

Personal Finance Insider’s mission to help smart people make better financial decisions is our goal. We carefully reviewed several credit unions to ensure that we were clear on this point. To find the best credit unions to get personal loans, we considered many factors.

• Annual percentage rates The better the interest rate on your loan is, the lower it will be. We searched for lenders that offered low minimum or maximum rates across all credit scores.  
• Length of the loan term: Personal loans were given with various repayment terms. 
• The loan amount range: We selected lenders with different loan minimums and maximums. This means that depending on which lender you choose, your eligibility may range from $500 to $100,000. Your creditworthiness, among other factors, will affect the amount you can borrow. 
• Eligibility requirementsYou cannot take out a personal loans from a credit union unless and until you are a member. So we chose credit unions that make it easy for you to qualify for membership. 
• Trustworthiness: Many people consider it a top priority to borrow from a trustworthy lender. To ensure the most trustworthy lenders, we only selected lenders with A+ ratings from the Better Business Bureau. First Tech has been given a C by the BBB due to complaints filed against it. Navy Federal is currently not rated by the BBB since the credit union responds only to closed complaints.

See our full personal loans ratings methodology >>

Frequently asked questions