Credit unions offer loans of up to $100,000, with an APR capped at 18%. They approve people with bad credit. Some of them offer up to $1,000 at 28%.

Credit unions perform a hard inquiry on the application process, so be careful with your credit report. Some credit unions can require you to add collateral or a cosigner.

ElitePersonalFinance found the best credit unions that offer personal loans for bad credit of December 2025!

Best Personal Loans from Credit Unions of December 2025

Credit unions have long been known as one of the most reliable sources of low-interest, flexible-term loans, with more lenient approval standards than banks. Plus, the employee member central approach, which focuses on its non-profit status to offer ongoing educational resources to all of its members. Not all credit unions are the same, with varying rates and approval requirements.

From understanding how credit unions operate to our top list of recommendations, Nationwide, ElitePersonalFinance gives you a better view of how to take out your next credit union personal loan.

Why Should I Trust ElitePersonalFinance

At ElitePersonalFinance, we thoroughly research more than 100 credit unions across all 50 states, evaluating them based on key criteria, including APR ranges, approval criteria, and membership eligibility requirements. We even deep dived into Better Business Bureau ratings and customer satisfaction scores to bring you only the most legit credit unions.

Whether it’s Navy Federal Credit Union, PenFed, First Tech, Alliant, DCU, and Tinker Federal Credit Union, or any of the other recommended credit unions, all of them are known to serve the members’ best interest with fully transparent loan terms, robust member benefits, and trusted proven performance so that you can rebuild credit or consolidate debt with ease.

Keep reading to learn more about the best personal loans from credit unions, including our top recommended lenders, how to qualify for credit union loans, and how banks and online lenders differ. That also breaks down the pros and cons of credit union loans and explains how to find the right credit union based on your personal situation.

First Tech Credit Union

For one of the leading credit unions, look no further than First Tech Credit Union. Loan amounts start at $500 and go up to $50,000, with terms ranging from 24 to 84 months. One of the best things is its competitive rates, which start at 8.99% APR; excellent credit qualifies for lower rates, especially for existing customers. Plus, it also offers co-borrower options that many major banks do not.

Another benefit to rolling with First Tech Credit Union is its secure lending options. Borrowers can choose to take out a Share Secured or Certificate Secured Loan, which allows them to borrow against their own savings while earning interest and provides an excellent credit-building opportunity. Plus, it has an innovative mobile app that makes it very easy to upload all of your documentation and receive same-day funding after approval.

Lastly, First Tech Credit Union also has an A+ rating by the Better Business Bureau with the Forbes “Best Credit Union for Personal Loans” (2024) distinction.

What We Like:

• Loans from $500 up to $50,000
• Repayment terms from 24 to 84 months
• Rates start at 8.99% APR
• Share Secured or Certificate Secured Loan options available
• A+ rating by the Better Business Bureau
• Forbes “Best Credit Union for Personal Loans” (2024)

What We Don’t Like:

• Not as widely recognized as larger credit unions
• Physical branches are limited to specific regions
• Higher minimum APRs than other recommendations
• Funding may take up to two business days

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Membership in First Tech Credit Union is required
• Minimum credit score of 660
• Apply through the First Tech Credit Union website or mobile app

Terms: First Tech Credit Union offers personal loans from $500 to $50,000 with repayment terms of 24 to 84 months for borrowers of all credit types. APRs start at 8.99%, with lower rates available for qualified existing members. First Tech also offers Share Secured and Certificate Secured Loans that allow borrowers to use savings or certificates as collateral for lower rates. Membership is required. Always read your official loan estimate before signing the contract.

Navy Federal Credit Union

Navy Federal Credit Union (NFCU) is one of the country’s largest credit unions, serving retired and active-duty military personnel and their families. It offers an excellent personal loan program with APRs ranging from 7.49% to 18%, with loan amounts from $250 to $50,000.

Plus, you can even extend unsecured loans up to 60 months, along with Savings Secured and Certificate Secured Loans that let its members borrow against deposits for a lower APR. Not to mention, on-time payments are reported to all three credit bureaus, allowing you to improve your financial standing.

On top of that, Navy Federal Credit Union even offers no prepayment penalties and an extensive branch network with more than 300 branches, along with same-day funding.

All in all, it gets no better than Navy Federal Credit Union (NFCU) for military personnel to get back on a solid financial footing.

What We Like:

• Loans up to $50,000
• Lower APRs than traditional banks
• Secured and unsecured loan options available
• No prepayment penalties
• Reports on-time payments to the three credit bureaus

What We Don’t Like:

• Limited membership to military members, veterans, and families
• No cosigner loans available
• Not the most branches outside of military bases

Eligibility & Next Steps:

• Must be a Navy Federal Credit Union member
• Military affiliation required
• Minimum credit score of 600
• Apply through the Navy Federal Credit Union website or mobile app

Terms: Navy Federal Credit Union provides personal loans from $250 to $50,000 with APRs ranging from 7.49% to 18% and repayment terms up to 60 months.  Both unsecured and secured loan programs are available, including Savings Secured and Certificate Secured options. Membership and military affiliation are required. Always read your official loan estimate before signing the contract.

PenFed Credit Union

PenFed Credit Union, one of the largest credit unions in the United States, is another excellent choice that serves both military members and the general public. PenFed’s personal loans range from $600 to $50,000, with APRs starting at 7.74% and repayment terms of 12 to 60 months.

One of the best things about PenFed Credit Union is that it charges no origination, prepayment, or application fees, which really cuts down on your costs. All you need to do is open a savings account with as little as $5 to receive funding within 1 to 2 business days.

Plus, PenFed Credit Union has earned numerous recognitions, including Forbes’ “Best Credit Union for Everyday Banking” (2024) and an A+ rating from the Better Business Bureau. If you’re looking for a trustworthy credit union, there’s no better one than this one.

What We Like:

• Loans from $600 to $50,000
• No origination or prepayment penalties
• Fast approval in as little as one business day
• Available for non-military members

What We Don’t Like:

• Not available in all states
• No co-signed loan options
• No secured loans available
• Not as many branches nationwide as traditional banks

Eligibility & Next Steps:

• Must be a PenFed Credit Union member
• Military affiliation not required
• Minimum credit score of 600
• Apply through the PenFed Credit Union website or mobile app

Terms: PenFed Credit Union offers personal loans from $600 to $50,000 with repayment terms from 12 to 60 months and APRs starting at 7.74% for borrowers of all credit types. There are no origination, prepayment, or application fees, and funding typically occurs within 1 to 2 business days after approval. Membership is open to everyone. Always read your official loan estimate before signing the contract.

Alliant Credit Union

Suppose you’re looking for a fully digital credit union that offers ultra-quick processing and high-limit personal loans. Then, Alliant Credit Union is a solid bet. Good to excellent credit can qualify you for loans of $1,000 to $50,000 at 10.49% APR with repayment terms of 12 to 60 months.

One of the best things about Alliant Credit Union is its emphasis on customer service. For only a $5 contribution to the Foster Care Success organization, perks like no origination fees, a fee for co-borrowers, and joining the union enjoys an A+ rating by the Better Business Bureau and have been the recipient of numerous awards, including Forbes “America’s Best Credit Unions” (2024).

What We Like:

• Loans from $1,000 to $50,000
• APRs around 10.49%
• 100% fully digital experience
• No origination or prepayment penalties
• Broad national membership eligibility
• Fast funding by the next business day

What We Don’t Like:

• No secured or share-backed loans available
• No in-person customer support

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Must be an Alliant Credit Union member
• Apply through the Alliant Credit Union website or mobile app

Terms: Alliant Credit Union provides personal loans from $1,000 to $50,000 with APRs around 10.49% and repayment terms from 12 to 60 months for borrowers of all credit types. Alliant charges no origination or prepayment fees. It is a digital-only bank.  Membership requires a small donation to an affiliated nonprofit. Always read your official loan estimate before signing the contract.

DCU

If you’re looking for a borrower-friendly credit union, the Massachusetts-based DCU Federal Credit Union is highly regarded, offering loans up to $50,000 and repayment terms up to 60 months. There are also Share Secured and Certificate Secured loan options available to take advantage of lower rates, along with full nationwide membership availability and a fast funding process.

One of our favorite things about DCU is that it offers arguably the best financial education resources of any of the credit unions we’ve covered, with a well-established financial education venture that offers practical tips on saving as well as helpful articles on how to identify and report check fraud, how to protect your bank account from hackers, and much more.

When it comes to awards, DCU has also racked up plenty of them, such as Bankrate “Top Credit Union for Rebuilding Credit” (2024) and Forbes “Best Credit Unions in America” (2024).

What We Like:

• Loans up to $50,000
• Repayment terms up to 60 months
• Bankrate “Top Credit Union for Rebuilding Credit” (2024)
• Forbes “Best Credit Unions in America” (2024)

What We Don’t Like:

• No cosigner loans available
• Not as many branches outside of Massachusetts

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Apply online through the DCU.org website

Terms: DCU offers personal loans up to $50,000 with repayment terms up to 60 months for borrowers of all credit types. Share Secured and Certificate Secured loans are also available for members. Membership is open nationwide. Always read your official loan estimate before signing the contract.

Tinker Federal Credit Union (TFCU)

Oklahoma’s largest credit union, Tinker Federal Credit Union (TFCU), offers unsecured personal loans from $500 to $50,000, with repayment terms of 12 to 60 months. Rates start at 9.49% APR and include a highly personalized lending process, where you can work with dedicated loan officers to understand how to best structure your loan—a nicer alternative to automated underwriting at larger banks.

TFCU also offers Share Secured Loans and Certificate Secured Loans, allowing users to use their savings or certificates as collateral to take advantage of lower rates.

With more than 450,000 members across 32 branches in the state, TFCU is all about personalized customer service while blending the best in digital. Forbes named it the best in-state credit union in 2024, and it has earned the Credit Union Times “Member Service Excellence Award” (2023).

What We Like:

• Loans from $500 up to $50,000
• Rates start at 9.49% APR
• Repayment terms of 12 to 60 months
• Credit Union Times “Member Service Excellence Award” (2023)
• Best In-state Credit Union in 2024 by Forbes

What We Don’t Like:

• Limited to the Oklahoma region
• Not as widely recognized as larger banks
• No mobile app coverage

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Resident of Oklahoma
• Open a savings account with a $5 minimum deposit
• Submit an online application through TinkerFCU.org or in person

Terms: Tinker Federal Credit Union provides unsecured personal loans from $500 to $50,000 with repayment terms from 12 to 60 months and APRs starting at 9.49% for borrowers of all credit types. TFCU also offers Share Secured and Certificate Secured Loans. Membership is limited to Oklahoma residents and select groups. Always read your official loan estimate before signing the contract.

Bethpage Federal Credit Union

If you’re looking for a well-rounded credit union, look no further than one of the largest New York-based community credit unions, Bethpage Federal Credit Union. It offers personal loans ranging from $500 to $50,000, with fixed APRs of 9.49% and repayment terms of 12 to 60 months.

One of Bethpage Federal Credit Union’s most significant strengths is that there are no application, origination, or prepayment penalties. Plus, its website is a one-stop shop for managing your loan from qualifying to same-day funding.

Like many of our recommendations, Bethpage also offers a Share Secured Loans program that allows users to qualify for lower rates than with unsecured loans. Plus, it has earned numerous awards, such as Forbes “America’s Best Credit Unions” (2024), and the distinction by Bankrate as “Best Credit Union for Low-Interest Personal Loans” (2024).

What We Like:

• Loans from $500 up to $50,000
• APR starting at 9.49%
• 12 to 60 months repayment terms
• Forbes “America’s Best Credit Unions” (2024)
• Bankrate “Best Credit Union for Low-Interest Personal Loans” (2024)

What We Don’t Like:

• Limited to New York State and surrounding areas
• No physical branches outside of New York
• No cosigner loans available

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Apply online at BethpageFCU.com

Terms: Bethpage Federal Credit Union offers personal loans from $500 to $50,000 with fixed APRs starting at 9.49% and repayment terms from 12 to 60 months for borrowers of all credit types. The lender charges no application, origination, or prepayment fees. Membership is open nationwide, though branch access is limited to New York. Always read your official loan estimate before signing the contract.

Golden 1 Credit Union

With more than 1.2 million customers, California-based Golden 1 Credit Union offers a robust personal loan program that ranges from $1,000 to $50,000, with repayment terms of 12 to 60 months. APRs are also in the 8.99% range, and there are no application or prepayment penalties with funding to your account within one business day of approval.

In total, it has 71 branches across California.

Like many of our recommendations, Golden 1 Credit Union also offers secured loan options that let you use your savings or share certificates as collateral. Plus, it reports on-time payments to the three credit bureaus, which will help you build your credit profile.

Along with awards such as NerdWallet “Best Credit Union for Member Experience” (2024) and Forbes “Best-In-State Credit Union – California” (2024), Golden 1 Credit Union is clearly one California residents should consider.

What We Like:

• Loans from $1,000 to $50,000
• APR starts at 8.99%
• No origination or prepayment penalties
• Secured and unsecured loan options available
• Funds by the next business day

What We Don’t Like:

• Limited to California residents
• No cosigner loans available
• Not as robust online tools as Alliant or PenFed Credit Union

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Resident of California
• $1 minimum deposit after opening a savings account
• Submit an online application through Golden1.com

Terms:  Golden 1 Credit Union provides loans from $1,000 to $50,000 with APRs starting at 8.99% and repayment terms of 12 to 60 months for borrowers of all credit types. Secured loan options are available for borrowers.  Membership is limited to California residents. Always read your official loan estimate before signing the contract.

America First Credit Union

Based in Utah, America First Credit Union (AFCU) is one of the state’s most reputable credit unions, offering more than 1.3 million members low-rate personal loans ranging from $500 to $50,000 with repayment terms of 12 to 60 months. APR is a competitive rate, starting at 9.49% for qualified applicants.

One of America First Credit Union’s most significant strengths is that it charges no hidden fees (including no origination or prepayment penalties) and offers fully transparent terms. They also provide Share Secured Loans or Certificate Secured Loans that allow you to use collateral for lower rates, along with a robust mobile app that includes real-time credit monitoring to support your financial health.

As for awards, America First Credit Union has won several, including the Forbes “Best-In-State Credit Union – Utah” (2024), the Credit Union Times “Excellence in Member Lending” Award (2023), and an A+ rating from the Better Business Bureau.

What We Like:

• Loans from $500 to $50,000
• Repayment terms from 12 to 60 months
• Competitive APR starts at 9.49%
• Secured and unsecured loans available
• Easy-to-use mobile app

What We Don’t Like:

• Mainly limited to Utah and Nevada
• Rates depend on your deposit history
• Larger loan requests require more extended verification

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Resident of Utah or Nevada (select regions)
• Minimum $1 deposit after opening a savings account
• Submit an online application through the America First Credit Union website

Terms: America First Credit Union offers personal loans from $500 to $50,000 with repayment terms of 12 to 60 months and competitive APRs starting at 9.49% for borrowers of all credit types. No origination or prepayment penalties apply. Secured and unsecured loan options are available. Membership is for residents of Utah and Nevada. Always read your official loan estimate before signing the contract.

What Are Personal Loans From Credit Unions?

Here are the different types of personal loans you can expect from credit unions:

Unsecured Personal Loans

Also referred to as signature loans: unsecured personal loans from credit unions typically start at $500 and go up to $50,000, with repayment terms of 12 to 84 months. With no collateral required, the list of recommendations includes Navy Federal for its Union (is flexible for its first-rate flexibility) and Alliant for better top-credit profiles. Whether you’re looking to consolidate debt or pay off a large medical bill, unsecured personal loans from credit unions can be a first go-to.

Secured Personal Loans

Secured personal loans use collateral, such as a vehicle title, savings account, or certificate of deposit, to offer lower APRs (as low as 3.00%–5.50%). Share-secured (secured by your savings account) and certificate-secured (secured by a CD) options are very popular. Institutions like DCU, Alliant, and Navy Federal are known for offering secured personal loans.

Fixed APRs typically lock in at 2% to 3% above the dividend rate on the collateral account, making it an excellent choice for anyone looking to rebuild their credit, especially when planning for larger expenses like an auto or mortgage.

Debt Consolidation Loans

To manage multiple high-interest debts into a single monthly payment, many credit unions offer consolidation loans. If you have strong credit, you might see APRs between 8.49% and 12.99%, versus 13.99% to 17.99% for good credit borrowers.

Payday Alternative Loans (PALs)

Federally regulated by the NCUA, alternative loans, or smaller-dollar loans, are designed as traditional payday loan alternatives with 28% APR caps and up to $2,000 in loan proceeds.

Depending on your membership status, you can expect to pay an APR between 12% and 18%. A representative loan example: a $600 loan with a 3-month repayment term and an 18% APR would give you a monthly payment of around $24. All in all, payday alternative loans are a safer choice than predatory payday loans.

Personal Lines of Credit (PLOCs)

Typically offered by larger credit unions like Navy Federal and First Tech, personal lines of credit are revolving credit accounts that work similarly to both credit cards and traditional personal loans, albeit with much lower APRs in the 10% to 17.99% range, depending on your credit score.

With personal lines of credit, you can secure limits of up to $20,000, offering nice revolving access to cash. One of the best things about PLOC programs is that you can make interest-only minimum payments during the draw period, freeing up your money for other expenses and providing greater flexibility.

Credit Builder Loans

If you’re looking to build credit through a controlled savings structure, we highly recommend credit builder loans.

What Are the Pros and Cons of Credit Unions’ Personal Loans?

Here are the pros and cons of credit union loans:

Pros:

Lower Interest Rates

One of the best things about credit union loans is that borrowers can enjoy lower interest rates than those offered by traditional banks and some online lenders. Remember, they are member-focused organizations interested in returning benefits to shareholders.

Many of our top recommended options, like Navy Federal Credit Union and PenFed, offer rates below the national average—sometimes several percentage points lower than banks—primarily for borrowers with good or excellent credit. Lesser-known institutions, such as regionally based Tinker Federal Credit Union (TFCU) and First Tech Credit Union, offer rates as low as 8% APR.

At the same time, expect greater transparency with credit unions, with no prepayment or origination fees, so that you enjoy higher upfront savings.

Personalized Decision Making

Forget about algorithmic calculations and turn to humanized lending decisions by credit unions, which means you’ll be working alongside dedicated loan officers who understand your individual circumstances.

For example, Tinker Federal Credit Union and DCU are known for basing loan eligibility on factors beyond your credit score, such as employment history and existing membership status. Even those with limited or moderate credit histories can still qualify for low APRs and flexible terms.

Do you have a hardship or need forbearance? If so, many credit unions are designed for this purpose, which is not as common in larger commercial banks like Chase and Wells Fargo.

Secured and Share-Backed Loan Availability

Many of our recommended options offer savings-secured and certificate-secured loans, which allow you to put your savings or certificate of deposit as collateral to take advantage of lower APRs. Sometimes you can even get APRs in the 3% range (e.g., Navy Federal Credit Union).

Security and the ability to share back the loans also provide the added benefit of allowing you to earn interest on your deposits, making it a nice credit-building tool. However, keep in mind that the funds are locked until they’re paid off.

Lots of Member Perks

As a credit union member, you can enjoy several perks, such as no origination fees or prepayment penalties, so more of your money goes toward paying off your principal and interest.

At the same time, you can also enjoy direct deposit rate discounts and loyalty programs. For example, existing account holders at First Tech Credit Union enjoy lower rates, while Navy Federal Credit Union offers cash-back opportunities.

Cons:

Membership Requirements

Expect to meet the credit union’s inclusive eligibility criteria. For example, Navy Federal Credit Union is reserved for retired or active military personnel and their families, whereas Tinker Federal Credit Union is limited to Oklahoma residents. Note that some are easier to join, e.g., Alliant Credit Union, but you should expect to have to be part of an affiliation or employer group to enter.

Limited Availability

Unlike national banks, credit unions have limited reach. Although digital-first credit unions like Alliant do serve nationwide, TFCU or DCU have limited branch networks. That means there’s limited branch availability if you prefer in-person service and are uncomfortable with submitting documents electronically.

Longer Approval Times

Because credit unions don’t use automated systems to make decisions during the loan process, credit union loans take longer to process. Some may take up to a week to process, whereas others, such as PenFed Federal Credit Union, may take as little as one business day. Don’t be surprised if you are expected to provide additional income verification or participate in a phone interview.

If you’re looking for instant AI-driven underwriting, then we encourage you to turn to larger fintechs like Upstart or Upgrade.

Not as Much Variety

Another downside to credit union loans is the limited diversification of loan products. Many only offer unsecured loans and do not focus on specialized categories like debt consolidation loans. If you’re looking for higher amounts for significant projects, then $50,000 (as is the case with Digital Credit Union) may not be up to par either.

All in all, many of our top recommended options, like Navy Federal, PenFed, Alliant, DCU, Tinker Federal Credit Union, and First Tech, offer perks that banks cannot match. Whether it’s lower interest rates or manual underwriting that takes your unique personal situation into account, there are also limitations, such as membership requirements and regional restrictions, that may make you ineligible.

How Credit Unions Compare to Banks and Online Lenders?

Here are three ways credit unions compare with banks and online lenders:

Interest Rates/Loan Costs

Expect much lower APRs from credit unions and banks thanks to their non-profit status and membership-based model. Remember that they reinvest earnings into lower interest rates and lower fees while offering more flexible repayment terms.

Plus, they generally offer no origination or prepayment penalties and much lower late payment fees. For example, online lenders charge origination fees as high as 10%, which are deducted from the loan proceeds and applied to administrative and processing costs.

Approval Requirements

Thanks to the relationship-based approach, credit unions consider factors beyond your credit score to determine eligibility, such as your current standing, account history, and cash flow behavior.

At the same time, they also offer credit-builder loan options, secured loans, or fair credit loan programs that help you avoid the high cost of predatory payday loans. Remember, credit unions often use manual processes to assess your personal financial situation as part of the overall package.

Funding Speeds

Expect much longer funding times at banks that require branch applications and manual review, taking up to 7 business days to disburse funds.

In turn, many credit unions today offer same-day approval and next-business-day funding, especially if you have an established account. Navy Federal, PenFed, and Alliant are particularly known for this.

Note that online lenders have the fastest funding speeds overall, with funding as quickly as a few hours after you’re verified, thanks to their fully automated underwriting systems. However, you should expect to pay slightly higher APRs with less flexible repayment terms.

All in all, credit unions are faster than banks and slower than online lenders, but the trade-off is (in all likelihood) lower APRs and better terms.

Can I Get a Loan From a Credit Union With Bad Credit?

Yes, it is very possible to get a loan from a credit union with bad credit. If you have scores in the 500–620 range, then you can take advantage of credit unions and their member-owned financial cooperatives that emphasize a member-centric approach over cold and hard automated underwriting.

One of the reasons credit union loans for bad credit are so sought after is their relationship-based approach, which considers your length of membership, recent repayment history, checking/savings activity, and other criteria unrelated to your credit score. That’s why you have a higher chance of being approved for a credit union personal loan than for a large national bank loan.

What Is the Difference Between the Approval Process of Credit Unions and Online Lenders?

The main differences between credit union and online lender approval processes boil down to membership requirements, evaluation criteria, and the speed of approval and funding.

For starters, credit unions require that you become a member before you can apply for a personal loan. Whether it’s a regional affiliation or through an employer, this counteracts online lenders, which allow anyone to apply directly through their website with no membership required.

Secondly, different evaluation criteria and underwriting practices apply to credit unions, which operate more on a relationship-based approach versus the data-driven, automated underwriting used by online lenders like Upstart and Best Egg.

How to Pick the Best Personal Loan From Credit Unions?

To identify the best personal loan from a credit union, here are the steps you can take:

Start with APRs

One of the most important things to consider with any credit union personal loan is the APR structure. Expect to pay an APR of 8.49% to 17.99% and understand how your credit score factors into that range. If you have excellent credit and a high income, you qualify for the lowest APRs.

Remember to focus on the actual APR ranges, not just the promotional rate. Plus, take into consideration other activities that can help lower your final APR, such as automatic payments, direct deposit, or relationship-based discounts. Try to understand how credit unions determine pricing as well (by fair, good, and excellent credit tiers, and whether your APR is fixed or variable for the entire term).

Keep in mind that almost all credit union loans are fixed-rate, meaning you should expect to make the same payment for the life of the loan.

Compare Loan Amounts, Borrowing Limits, and Access to Funds

When choosing the best personal loan from a credit union, pay attention to the loan amount and borrowing limits. One can offer loans as low as $250, while other credit unions allow you to borrow up to $50,000, so be sure to fit your exact need into the equation. Don’t make it so small that you need to take out a second loan later, or so large that you’ll be taking on more debt than you can afford.

Plus, with higher loan amounts, you should expect to provide additional documentation and adhere to tighter income and debt-to-income (DTI) rules.

Consider Repayment Terms

Expect a lot greater flexibility with credit unions’ personal loans than traditional banks when it comes to repayment. Expect anywhere from 24 to 84 months, depending on the loan amount and your credit score. Keep in mind that the shorter the repayment term, the lower your total interest paid, but the higher your monthly payments, whereas longer terms pay higher interest over time.

Make sure to keep in mind all available term lengths and whether you can choose between short-, mid-range-, and extended-repayment terms. Always use an APR calculator to calculate your monthly payment and total interest, and consider grace periods or skip-payment programs, especially during times of financial hardship.

Look Into Fees

Today, yes, credit unions charge a variety of fees, including origination fees, late fees, return payment fees, prepayment penalties, and optional add-ons for protection plans. All combinations of these can significantly increase your total loan cost, so we encourage you to review the fee structure. Hey, what’s going on? How are you?

Look Into Membership Rules

Before choosing a personal loan from a credit union, always check whether you meet all the requirements. Credit unions aren’t available to everyone and have their own rules, such as geographic location, type of affiliation, or even military service, as with PenFed Union. Luckily, two of our recommendations, Alliant and First Tech, have lowered eligibility requirements so that everyone can join. Don’t fall in love with any APR before you understand this.

At the same time, long-term members often enjoy the best benefits and firsthand access to checking and savings products. Plus, you can even benefit from relationship discounts that can cut up to 0.5% off your rate when you enroll in automatic payments or keep an account balance threshold.

Consider Customer Service

If you become a long-term credit union member, you should look into its customer service. Nowadays, credit unions offer no shortage of support options, such as dedicated loan officers, real-time online chats, and more. Some even provide forbearance programs in case you face hardship, such as the loss of a close family member or a job.

At the same time, credit unions are now just as agile as banks when it comes to producing mobile apps and making it easy to do everything from run a loan to pre-qualify with soft credit checks.

What Alternatives to Payday Loans Do Credit Unions Offer?

One of the safest, lower-cost credit union loan options is a payday alternative loan.

Also known as PALs, these serve as a direct deterrent to predatory payday loans, allowing you to enjoy capped APRs of 28% compared to the dramatic 500%+ APRs of traditional payday loans.

Loan amounts typically range from $200 to $2,000 with repayment terms of 1 to 12 months, allowing you to enjoy greater monthly flexibility. Plus, they follow the same process as standard unsecured loans: you can apply online and receive approval within minutes, with funds by the next business day.

As always, membership requirements may vary. You can qualify by putting as little as $5 down in a checking or savings account, depending on the credit union.

There are two types of payday alternative loan programs: PAL I and PAL II.

PAL I loans range from $200 to $1,000, with a capped APR of 28% and repayment terms of 1 to 6 months. Generally, you need to be a credit union member for at least one month before applying.

PAL II loans go up to $2,000 with a 28% cap on APRs, and repayment terms range from 1 to 12 months with no minimum membership waiting period, making it an excellent choice for anyone looking for quick, emergency cash immediately after joining a credit union.

And it is that payday alternative loans are better than payday loans because they offer lower APR caps, predictable fixed payments with no rollovers, and longer repayment windows of up to 12 months. Plus, strict NCUA rules limit credit unions’ ability to charge and allow them to rebuild credit. At the same time, on-time payments are reported to Experian, Equifax, and TransUnion, making it a win-win.

If you want to take advantage of payday alternative loans today, then we recommend Navy Federal, PenFed, DCU, or Alliant.

What Are The Best Local Credit Unions?

Benefits of joining a local credit union include lower rates, personalized service/community-based support, and membership-exclusive benefits tied to the local community, such as region-specific education resources.

According to Forbes, here are the top-rated credit unions in each state as of 2025:

• Alabama – Redstone Federal Credit Union
  Alaska – Alaska USA Federal Credit Union
  Arizona – Desert Financial Credit Union
  Arkansas – Arkansas Federal Credit Union
  California – Golden 1 Credit Union
  Colorado – Elevations Credit Union
  Connecticut – American Eagle Financial Credit Union
  Delaware – Del-One Federal Credit Union
  Florida – Suncoast Credit Union
  Georgia – Delta Community Credit Union
  Hawaii – Hawaii State Federal Credit Union
  Idaho – Idaho Central Credit Union
  Illinois – Alliant Credit Union
  Indiana – Indiana Members Credit Union
  Iowa – GreenState Credit Union
  Kansas – CommunityAmerica Credit Union
  Kentucky – Commonwealth Credit Union
  Louisiana – Barksdale Federal Credit Union
  Maine – Maine Savings Federal Credit Union
  Maryland – SECU Credit Union
  Massachusetts – Digital Federal Credit Union
  Michigan – Lake Michigan Credit Union
  Minnesota – Wings Financial Credit Union
  Mississippi – Keesler Federal Credit Union
  Missouri – First Community Credit Union
  Montana – Montana Credit Union
  Nebraska – Centris Federal Credit Union
  Nevada – Silver State Schools Credit Union
  New Hampshire – Service Credit Union
  New Jersey – Affinity Federal Credit Union
  New Mexico – Nusenda Credit Union
  New York – Bethpage Federal Credit Union
  North Carolina – State Employees’ Credit Union
  North Dakota – First Community Credit Union
  Ohio – Wright-Patt Credit Union
  Oklahoma – Tinker Federal Credit Union
  Oregon – OnPoint Community Credit Union
  Pennsylvania – PSECU
  Rhode Island – Navigant Credit Union
  South Carolina – South Carolina Federal Credit Union
  South Dakota – Black Hills Federal Credit Union
  Tennessee – ORNL Federal Credit Union
  Texas – Randolph-Brooks Federal Credit Union
  Utah – America First Credit Union
  Vermont – Vermont Federal Credit Union
  Virginia – Virginia Credit Union
  Washington – BECU
  West Virginia – Element Federal Credit Union
  Wisconsin – Summit Credit Union
  Wyoming – Blue Federal Credit UnionBelow, I mention that we have a complete list of the top credit unions, and I will add the full list of the best in all states.

How We Picked These Credit Unions

Operating as member-owned financial cooperatives, credit unions choose the right way to work very differently from banks or fintech lenders. That means we not only look at APRs but also at how they operate on a relationship basis.

For my research, we’ve covered more than 100 credit unions across all 50 states, narrowing our final list based on criteria such as low APRs, flexible terms, and excellent customer support.

Here are all the criteria we used to evaluate each credit union covered in our guide:

Reputation

One of the biggest reasons Navy Federal Credit Union, DCU, Golden 1, and others were selected for our list is their nationally recognized reputations and proven records of serving their customer bases.

For example, Navy Federal Credit Union has been in business for more than 90 years, whereas DCU focuses heavily on consumer education. Plus, all of our recommendations have received critical accolades, such as a plus Better Business Bureau rating, Forbes inclusion, and Bankrate distinctions, which set them apart from the rest.

APRs & Loan Amounts

Putting promotional rates or unrealistic APRs by the wayside, we focus on actual borrower costs. We already know that credit unions offer lower rates than traditional banks, but all of our recommendations consistently hit competitive APRs and reasonable minimums. For example, you should expect an APR of 7.49% to 9.49% on all personal loans, depending on your credit score.

At the same time, we also looked at repayment options. Some of our top picks, like TFCU, Alliant, PenFed, DCU, and America First, offer terms of 60 or 84 months, giving you greater flexibility to cut down your monthly payments or shorten your repayment term, depending on your financial objectives. They also come with higher maximum loan limits of up to $50,000, and you can even borrow as little as $250.

Frequently Asked Questions

What credit score do I need for a credit union loan?

With credit unions, you will usually need a credit score in the low 600s, though some accept the high 500s. Remember that your entire financial profile is assessed, not just your credit score, using criteria such as income, past payment history, and your debt-to-income ratio.

Even if you have average credit, you may qualify for better rates as long as you’re an established member with a good deposit history.

Are credit union loans cheaper than bank loans?

Yes, credit union loans are generally cheaper than bank loans since they are non-profit financial cooperatives that are interested in passing savings back to members. Expect anywhere from 1.00 to 3% points lower than banks, while avoiding many origination and prepayment penalties, resulting in longer-term savings for borrowers.

Can I get a credit union loan with bad credit?

Yes, it is very possible to get a credit union loan with bad credit, since your entire financial profile is assessed. You’ll be assessed on all things, from checking and savings account behavior to employment stability. Plus, if you take out secured loans backed by vehicles, savings, or a certificate of deposit, you can achieve a lower APR while helping to rebuild your credit.

How fast can I get approved at a credit union?

Expect credit union loans to be approved in as little as one to three business days. Two of our recommendations, Alliant Credit Union and PenFed Credit Union, offer same-day approval with next-day funding. Expect the longest processing times at smaller credit unions, which often require signal verification, such as your past pay stubs or tax returns.

Do I need to be a member to apply?

If you want to take advantage of credit union loans, then you must become a member. Some require membership up front, while others require that you apply first and be pre-qualified thereafter. To join, you usually have to put down a savings deposit of anywhere from $1 to $25, and eligibility is based on employer affiliation, where you live, or other similar criteria.

What’s more, long-term members often enjoy the best benefits and firsthand access to checking and savings products. Plus, you can even benefit from relationship discounts that can cut up to 0.5% off your rate when you enroll in automatic payments or keep an account balance threshold.

What documents do credit unions ask for?

Most credit unions require different types of identity verification, from proof of income through electronic pay stubs to tax returns. Expect to hand over business tax schedules or contracts if you’re self-employed. Don’t forget about proof of address and more detailed financial statements if you’re looking for higher loan amounts. Please read your credit union terms and conditions to understand what you need to submit.

How much can I borrow from a credit union?

Expect to be offered loan amounts anywhere from $250 to $50,000. Your eligibility for any sum depends on several factors, such as your creditworthiness and your good standing with the institution. Expect to qualify for the highest credit limits if you have good credit and a higher income. Plus, there is always the option of secured loans that allow you to borrow more by using savings as collateral.

Do credit unions charge origination fees?

Most of the credit unions on our list do not charge origination fees. However, you can expect to pay a small administrative fee depending on the loan you’re looking for. Expect late payment and return payment fees, as that’s a normal cost of doing business. Thanks to their non-profit status, you can expect simple, transparent fee structures. However, it’s important to confirm before applying.

What’s the difference between secured and unsecured credit union loans?

The difference between secured and unsecured credit union loans is that secured loans require collateral, such as a vehicle, savings account, or certificate of deposit. Unsecured loans do not require any collateral. Thanks to posing less of a risk to the lender with secured loans, you can enjoy significantly lower APRs, especially if you have a less-than-stellar credit score.

Which credit union is best for personal loans?

All of the credit unions on our list are doing an exceptional job with personal loan programs. If you’re looking for low APRs and quick funding, consider leaders like PenFed, Alliant, and Navy Federal. If you live within a service area, then DCU, Golden 1, Bethpage, or America First can be excellent options. If you want to find the right fit, always compare APRs, fees, terms, and membership requirements.

Conclusion

In short, credit unions offer an excellent opportunity to enjoy member-first underwriting and credit-building perks. From Alliant’s digital-first approach to Tinker Federal Credit Union’s community-focused programs, every lender brings something new to each unique borrower. Trust that this ElitePersonalFinance guide has done an excellent job of helping you understand which credit union best fits your financial profile.