Best credit union personal loans

Credit union personal loans usually offer low rates and flexible terms. If you’re in search of a personal loan from a credit union, here’s a list of our top picks.

• Best for large amounts: Alliant Credit Union
• Best for military families: Navy Federal Credit Union
• Best for no fees: PenFed Credit Union
• Best for secured loans: Connexus Credit Union
• Best for people with no credit: Golden 1 Credit Union
• What are credit union personal loans?
• When is a credit union personal loan a good idea?
• Alternatives to credit union personal loans
• FAQs about credit union personal loans

Best for large amounts: Alliant Credit Union

Why an Alliant Credit Union personal loan stands out: Alliant Credit Union personal loans go up to $100,000, which is higher than the maximum loan amounts at other credit unions. You can use the funds to cover a larger expense, such as a home improvement project.

Pros

• Same-day funding available
• No origination fees or prepayment penalties
• Debt protection plan for unemployment and other unexpected situations

Cons

• Must be an Alliant member for at least 90 days to qualify
• Longer loan terms have higher APRs
• No prequalification option

Read our review of Alliant Credit Union personal loans to learn more.

Best for military families: Navy Federal Credit Union

Why a Navy Federal Credit Union personal loan stands out: Navy Federal Credit Union personal loans are only an option if you’re an active-duty member, veteran, Department of Defense civilian, or an immediate family member. You can borrow anywhere from $250 to $50,000, depending on loan type.

Pros

• Offers secured and unsecured loans
• Can receive funds in as little as 24 hours
• Longer terms of up to 180 months for home improvement loans

Cons

• Must be part of the military community
• Higher APRs for longer terms
• Late payment fees

Read our review of Navy Federal Credit Union personal loans to learn more.

Best for no fees: PenFed Credit Union

Why a PenFed Credit Union personal loan stands out: Some lenders charge personal loan fees, but PenFed Credit Union does not. You don’t have to worry about origination fees, prepayment penalties or balance transfer fees.

Pros

• Low starting APR
• Autopay discount
• Next-day funding possible

Cons

• Must join the credit union to receive funding
• Late payment fees
• Doesn’t disclose eligibility requirements online

Read our review of PenFed Credit Union personal loans.

Best for secured loans: Connexus Credit Union

Why a Connexus Credit Union personal loan stands out: Connexus Credit Union lets you choose from a few secured loans, which require an asset like your savings account. Terms for its secured and savings-secured loans are based on your asset’s age and value, while its share-secured loans offer terms of up to 120 months.

Pros

• Secured and unsecured loan options
• Rate discounts available
• Can easily join and get a loan with a $5 donation

Cons

• Higher APRs than other lenders for unsecured loans
• No online prequalification
• Potential fees

Best for people with no credit: Golden 1 Credit Union

Why Golden 1 Credit Union stands out: It can be difficult to get a loan if you don’t have a credit history. But Golden 1’s “Credit Starter” loan, available in amounts of up to $2,500, allows you to establish new credit. You need to have less than 12 months of credit to apply, and higher loan amounts require a guarantor or co-signer. Unlike credit-builder loans where you pay off the loan first, you’ll receive the funds for this loan upfront.

Pros

• No collateral required
• Skip-a-payment feature
• Same-day decisions

Cons

• Must live in California, have a family member or domestic partner that is a member, or work for a partner employee group
• Higher APRs than its other loan products
• Late payment fees

What are credit union personal loans?

Credit union personal loans are personal loans offered by credit unions, which are not-for-profit financial institutions. Just like traditional bank loans, you get a lump sum of money upfront and pay it back with interest over a set term.

You can use a credit union personal loan to help pay for just about any unexpected or planned expense. Most credit union personal loans come with competitive rates, low fees, and flexible repayment terms. But the caveat is you’ll likely need to join a credit union before you can get a loan.

When is a credit union personal loan a good idea?

Consider a personal loan from a credit union if any of these situations apply to you.

• You’re already a credit union member: If you need to borrow money and have already joined a credit union, it’s a good idea to explore its personal loan options.
• You’re looking for low rates and minimal fees: You may be able to find a credit union personal loan with better interest rates and less fees than traditional banks and online lenders.
• You prefer a personalized loan experience: Many credit unions get to know their members and offer more individualized service than larger lenders.

If you don’t want to join a credit union, you should look elsewhere for a personal loan as most credit unions require you to become a member to take advantage of its products.

Alternatives to credit union personal loans

If you need some cash to cover an expense but don’t want to take out a credit union personal loan, here are a few alternative options:

• Buy-now, pay-later app: A BNPL app might make sense if you have a large purchase to make. You can break it up into multiple equal installments you pay over time.
• Home equity line of credit: For a flexible financing option, a HELOC can be a good choice, as long as you’re a homeowner with equity. You can take out as much or as little money as you want, up to your set credit limit.
• 0% APR credit card: If you have good credit, a card with a 0% introductory APR can allow you to cover an expense without paying interest. Just make sure to repay your balance before the intro period (usually six to 21 months) ends. Otherwise, regular interest charges will kick in.

Our methodology: How we pick the best personal loans

Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:

• Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
• Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
• Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.