Best Personal Loans from Credit Unions 2020

Credit unions offer loans of up to $100,000, with an APR capped at 18%.

Credit unions offer loans with low APR and great terms for people with good and excellent credit.

People with bad credit can’t get a loan from bank. However credit unions fund people with bad credit. Their APR is capped at 18%, which is not bad at all. Some credit unions have payday loan alternatives, aped at 28%. Credit unions evaluate your real ability to repay the loan on time, by paying more attention to your income and debt to income ratio, than your credit score.

Pros:

    Up to $100,000.

    Very low APR for people with good credit score.

    Cheap APR, which is capped at 18%.

    Flexible terms.

    People with bad credit can qualify for a personal loan.

    Payday loan alternatives for people with bad credit capped at 28%.

    Lower fees and better terms than banks, according to many studies.

    You can be a member to both banks and credit unions.

Cons:

    You have to become a member.

    Most credit unions have fees.

    Many credit unions are created by and for certain groups of people, such as employees of a certain company or residents of a certain town — and some are still fairly restrictive. This means that people who are not in these groups, can’t apply for membership.

    Hard credit pull. Be careful. Most online lenders perform a soft credit pull when you apply for a loan. Most credit unions perform a hard credit pull on the application process. This lower your credit score. Tip: Call the credit union before you plan to apply, give them details on your financial situation and ask what are your chances to get approved. Apply only if you are almost sure that you meet their criteria. Don’t waste time and points from your credit score, if you don’t meet their criteria.

    Less products available than banks.

PAL I vs. PAL II

As of December 2019, federally chartered credit unions can offer two types of payday alternative loans, known as PALs I and PALs II.

PALs I was the original type of payday alternative loan. According to the NCUA, these loans:

    Are between $200 and $1,000.

    Have a repayment term of 1 to 6 months.

    Have a maximum application fee of $20.

    Come with a maximum APR of 28%.

    Require a person to be a credit union member for a month before getting one.

    Are available up to three times in a rolling six-month period.

PALs II is the newer of the two loans. These loans have similar rules, with the following exceptions:

    They can be any amount up to $2,000.

    They have a minimum term of one month and a maximum term of 12 months.

    They can be taken out immediately after a person establishes membership with the credit union.

A borrower can’t have both types of loans at the same time.

Facts about Credit Unions

    Over the past five years, federal credit union loan APRs on three-year loans have averaged 9.29%, while banks charge 10.18%, according to data from the National Credit Union Administration.

    State-chartered credit unions have charged an average APR on loans with all term lengths of 11.43% over the past five years, according to economists with the Credit Union National Association.

Credit unions are national and local.

ElitePersonalFinance list both of them.

Here are all local credit unions by state.

Here are the best national credit unions.

If you plan to search for a loans from credit unions, we highly recommend to start with SuperMoney and Credible. These are the best loan comparison sites. Once you register with them, you will be matched with many online lenders, credit unions and banks. In fact they work with all big lenders in America. These sites can help you save time and find the best offer. Apply now and get offers in minutes! Credible even offer you $200, if you find cheaper loan than their!

You won’t receive any spam from them!

They don’t get percentage from your loan. If you get loan from them, they only get small percentage from the lender, not from you, which means that your loan wouldn’t become more expensive.

ElitePersonalFinance found the best credit unions for personal loans 2020!

See also:

Best Auto Loans from Credit Unions Up to $500,000, APR start at 1.99%.

Best Student Loans from Credit Unions Up to $500,000, APR start at 3%.

Best Mortgage Rates from Credit Unions Up to $1,000,000, APR start at 1.99%.

Best Business Loans from Credit Unions Up to $10,000,000, APR start at 5.99%.

Pro tip!

If you already have many loans and are with bad credit, try to consolidate them in one big loan!!! This way you significantly decrease your monthly payments; lower your total interest over the loan and rebuild your credit, lower your risk factor.

Review The Best Debt Consolidation Loans for Bad Credit 2020

Review Our Complete Debt Consolidation Guide for Bad Credit

Amount

$500-$50,000

APR

10.0% - 18.0% Unsecured & 3% - 18% Secured

Inquiry:

Hard

Loan Types
  • Secured and Unsecured Personal Loans

  • Unsecured Personal Line of Credit

  • Certificate Secured Loans

  • Savings Secured Loans

  • Credit Cards

Amount

$1,000 - $50,000

APR

6.49% - 10.49%

Inquiry:

Hard

Loan Types
  • Personal Loans

  • Home Loans

  • Auto Loans

  • Credit Cards

  • Home Equity Line of Credit

Amount

$300 – $25,000

APR

5% - 18%

Inquiry:

Hard

Loan Types
  • Credit Cards

  • Auto Loans and Refinance

  • Secured and Unsecured Personal Loans

  • Student Loans

  • Home Equity Loans

  • Credit Builder Loans

  • Saving Secured Loans

  • Quick Loans

Amount

$500 – $25,000

APR

6.49% - 18%

Inquiry:

Hard

Loan Types
  • Personal Loans

  • Auto Loans

  • Auto Loan Refinance

  • Student Loans and Refinance

  • Mortgage

  • Credit Cards

  • Quick Loans

Amount

$250 - $20,000

APR

10.45% - 18%

Inquiry:

Hard

Loan Types
  • Personal Loans

  • Auto Loans

  • Auto Loan Refinance

  • Student Loans

  • Student Loan Refinance

  • Mortgage

  • Credit Cards

  • Quick Loans

Amount

$1,000 - $20,000

APR

3% - 18%

Inquiry:

Hard

Loan Types
  • Secured and Unsecured Personal Loans

  • Line of Credit

  • Credit Cards

  • Mortgage

  • Auto Loans

Amount

$1,000 - $50,000

APR

8.99% - 18%

Inquiry:

Hard

Loan Types
  • Secured and Unsecured Personal Loans

  • Line of Credit

  • Credit Cards

  • Mortgage

  • Auto Loans

  • Auto Loan Refinance

  • Student Loans

  • Student Loan Refinance

  • Business Loans

  • FHA Loans

  • Payday Loan Alternative

Amount

$1,000 - $40,000

APR

5.09% - 18%

Inquiry:

Hard

Loan Types
  • Auto Loans

  • Personal Loans

  • Home Loans

  • Business Loans

  • Credit Cards

Amount

$1,000 - $15,000

APR

8.74% - 18%

Inquiry:

Hard

Loan Types
  • Auto Loans

  • Auto Loan Refinance

  • Personal Loans

  • Mortgage

  • Mortgage Refinance

  • Business Loans

  • Credit Cards

  • Line of Credit

Amount

$1,000 - $100,000

APR

2.70% - 18%

Inquiry:

Hard

Loan Types
  • Auto Loans

  • Auto Loan Refinance

  • Personal Loans

  • Mortgage

  • Mortgage Refinance

  • Business Loans

  • Credit Cards