Best Credit Union Loans of 2025: Personal Loan Rates, Terms, and Perks

Credit union personal loans often come with lower rates, fewer fees, and more flexible approval than banks. As nonprofit, member-owned institutions, credit unions typically pass savings to members and take a more personal approach—helpful if your credit or income makes qualifying elsewhere tough.

Many borrowers use them for debt consolidation, major expenses, or to benefit from capped rates and better service. If you want a loan that balances affordability with flexibility, a credit union could be your best fit. Here are our recommendations.

Table of Contents

1. Best credit union personal loans
   1. PenFed Credit Union
   2. Navy Federal Credit Union
   3. Alliant Credit Union
   4. Service Credit Union
   5. Connexus Credit Union
2. What are credit union personal loans?
   1. Do credit unions offer debt consolidation loans?
   2. Pros and cons of credit union loans
3. Are there credit union loans for bad credit?
4. How to get the best credit union personal loan rates
5. Credit union personal loan requirements
6. How to get a personal loan from a credit union

Best credit union personal loans

PenFed Credit Union

Best for Easy Membership

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Why it’s one of the best: Most credit unions restrict membership by employer, location, or military affiliation. PenFed Credit Union is open to everyone, making it one of the most accessible options for borrowers who want the benefits of a credit union personal loan without membership hurdles.

• Open membership with no restrictions
• Soft credit check for prequalification
• No origination fees

• Rates aren’t the lowest among CUs
• Loan amounts capped at $50,000

Rates (APR)	As low as 7.99%
Loan amounts	Up to $50,000
Terms	Up to 5 years
Origination fees	$0

Eligibility

• Soft credit check? Yes
• Minimum credit score: 700
• Minimum income: Not disclosed
• States: All 50 states and Washington, D.C.

Navy Federal Credit Union

Best for Military Families

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Why it’s one of the best: As the largest credit union in the U.S., Navy Federal Credit Union serves military members and their families with personal loans as small as $250 and as large as $50,000. That flexibility, paired with no origination fees, makes it a strong CU choice if you’re part of the military community.

• Wide loan size range — as little as $250
• No origination or prepayment fees
• Same-day funding available

• Membership limited to military community
• No soft credit check for prequalification

Rates (APR)	7.99% – 18.00%
Loan amounts	$250 – $50,000
Terms	Up to 5 years
Origination fees	$0

Eligibility

• Soft credit check? Yes
• Minimum credit score: Not disclosed
• Minimum income: Not disclosed
• States: All 50 states and Washington, D.C.

Alliant Credit Union

Best for Easy Approval Process

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Why it’s one of the best: Unlike most credit unions, Alliant lets you apply and get a loan decision before you’re required to join. That’s a big advantage if you’re not already a member and want to know if you qualify before going through the membership process.

• Very high maximum loan amount ($100,000)
• Loan decision before membership required
• No origination fees
• Fast approval and same-day funding

• Higher starting APR than peers
• Membership requires donation if you don’t meet other criteria

Rates (APR)	From 11.79%
Loan amounts	$1,000 – $100,000
Terms	1 – 5 years
Origination fees	$0

Eligibility

• Soft credit check? Yes
• Minimum credit score: 640
• Minimum income: Not disclosed
• States: All 50 states and Washington, D.C.
• Membership: Open nationwide with donation option if you don’t meet other criteria

Service Credit Union

Best for Member Perks

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Why it’s one of the best: Service Credit Union goes beyond low rates by offering unique perks, like a 0.75% APR discount for active-duty military, personal lines of credit, and multiple ways to qualify for membership. It’s a good fit if you want more than just a straightforward personal loan.

• 0.75% APR discount for active-duty military
• No origination fees
• Personal loans and lines of credit available

• Membership tied to military, employers, or partner organizations
• No soft credit check option

Rates (APR)	From 10.74%
Loan amounts	Up to $50,000
Terms	1 – 5 years
Origination fees	$0

Eligibility

• Soft credit check? No
• Minimum credit score: 600
• Minimum income: Not disclosed
• States: Primarily New Hampshire and Massachusetts branches, but membership open nationwide through military/affiliates or partner organizations
• Membership: Military members, family, employees of partner groups, or by joining an affiliated organization

Connexus Credit Union

Best for Secured Loan Options

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Why it’s one of the best: Connexus offers both secured and unsecured personal loans, with secured rates starting as low as 5.24% APR. That flexibility reflects a core CU benefit: giving members affordable ways to borrow, even if their credit isn’t perfect.

• Very competitive secured loan rates
• Secured and unsecured options available
• Discounts for digital banking and e-statements

• Membership eligibility somewhat limited (unless you donate)
• Unsecured loan rates start higher than some peers

Rates (APR)	Starting at 9.99% for unsecured; Starting at 5.24% for secured loans
Loan amounts	$1,000 – $50,000
Terms	2 – 7 years
Origination fees	$0

Eligibility

• Soft credit check? No
• Minimum credit score: 640
• Minimum income: Not disclosed
• States: Nationwide (membership available through donation if not otherwise eligible)
• Membership: Employees, family of members, select groups, or by joining the Connexus Association with a one-time $5 donation

What are credit union personal loans?

A personal loan lets you borrow a lump sum of money and repay it in fixed monthly installments over a set term. Like other personal loans, they may be secured (backed by collateral, such as a savings account or car) or unsecured (no collateral required).

Personal loans from credit unions work much like personal loans from a bank, but they have distinct advantages thanks to the credit union model:

• Interest rates: Federal credit unions are subject to a legal interest rate cap. Through March 2026, the maximum annual percentage rate (APR) is 18%, which helps protect borrowers from extremely high costs. Many banks and online lenders don’t have this safeguard, meaning their top rates can run much higher.
• Qualification: Credit unions often take a more personal, holistic approach to underwriting. Instead of relying solely on credit scores, they may also weigh factors like income stability, relationship history with the CU, or willingness to use collateral. That can make approval easier if your credit profile isn’t perfect.
• Fees: Because credit unions are nonprofit, member-owned organizations, they usually keep fees lower. It’s common to find no origination fees, no prepayment penalties, and fewer “hidden” charges compared to traditional banks.

Do credit unions offer debt consolidation loans?

Yes. Credit union personal loans can be used to consolidate high-interest debt, such as credit card balances. By rolling multiple debts into one loan, you’ll have a single monthly payment—often at a lower interest rate. That can help you save money on interest while making repayment more manageable.

Pros and cons of credit union loans

Pros

• Low rates and fees

  Rate caps and lower fees help keep your cost of borrowing low.

• Easier qualification

  Credit unions may be more lenient in who they approve for loans. 

• Personalized lending

  A credit union may offer a more intimate feel than a traditional bank. 

Cons

• Membership requirements

  Some credit unions may be more difficult to join than others.

• Loan limits and terms

  Credit union loans may have lower limits than traditional banks. 

• Location and availability

  Where you live may determine your options for local credit unions.

Many of my clients are members of credit unions—or would prefer to join one if possible. When it comes to loans, however, the right option often depends on the amount needed. Credit unions typically have lower lending limits compared to other personal loan providers, so if a client needs a larger amount (for example, $100,000), we may need to explore alternatives, such as an online personal loan or a HELOC.

Are there credit union loans for bad credit?

Yes. One of the biggest advantages of turning to a credit union for a personal loan is that approval may be easier if you have fair or poor credit or if you’ve already been denied by a bank. For context, a FICO score of 580–669 is considered fair, and anything below 580 is poor.

Credit unions are often more willing to look at the whole picture—including your income, relationship with the CU, or ability to provide collateral—instead of relying only on your credit score. This member-first approach can make it possible to qualify even when your credit history isn’t strong.

That said, you may face a higher interest rate if your score is low. To improve your chances, consider:

• Secured loans: Offering collateral (like a savings account or car) may help you qualify and unlock a lower rate.
• Cosigners: Some credit unions allow you to apply with a cosigner who has stronger credit and is also a CU member.
• Small loan amounts: Credit unions sometimes approve smaller loans that banks wouldn’t touch, giving you a stepping stone to rebuild credit.

If you’re in this situation, a CU personal loan can be more than just a way to borrow—it can also be a tool to rebuild your credit history with on-time payments.

How to get the best credit union personal loan rates

Rates at credit unions are often lower than what you’ll find at banks or online lenders, and they can’t exceed the federal cap. Within that range, though, your exact rate depends on your credit profile, income, and the type of loan you choose.

Here are a few ways to improve your odds of getting the lowest rate available:

• Compare multiple credit unions: Each credit union sets its own pricing and membership requirements, so it’s worth shopping around.
• Check credit and income requirements: Make sure you know your credit score and debt-to-income (DTI) ratio before applying.
• Offer collateral: Secured loans (backed by savings or a vehicle) generally unlock lower rates than unsecured loans.
• Apply with a cosigner: A cosigner who has strong credit and a credit union membership can help you qualify for a better rate.
• Build a relationship: Some credit unions reward longer-term members with more favorable terms, so joining ahead of time and opening checking and savings accounts may help.

Even a small difference in APR can add up. On a $25,000 loan with a five-year term, a 12% APR means a payment of about $556/month and $8,367 in interest. At 10% APR, the payment drops to $531/month with $6,871 in interest—nearly $1,500 saved.

Credit union personal loan requirements

To get a personal loan from a credit union, you’ll need to meet two sets of requirements: financial qualifications and membership eligibility.

• Financial qualifications: Credit unions will review your credit, income, and debt-to-income ratio, but often with more flexibility than banks. If your credit history isn’t perfect, a credit union may still work with you, especially if you can offer collateral or apply with a co-signer.
• Membership eligibility: Unlike banks, credit unions require you to be a member before you can borrow. Eligibility may depend on where you live, your military status, your employer, or belonging to a partner association. Many credit unions also allow you to join by making a small donation to a nonprofit they support.

Online credit unions are typically the easiest to access, since some allow nationwide membership with minimal requirements. Joining usually just means opening a small savings account—sometimes with as little as $5—to establish your membership.

How to get a personal loan from a credit union

If you’re interested in how to get a personal loan from a credit union, researching membership requirements is the first step. Here’s what comes next:

1. Join the credit union. Submit an application online or in-person to open a new credit union account.
2. Review loan options. Decide how much to borrow and select the loan repayment term you’d like.
3. Apply for the loan. Complete the lender’s application and provide any supporting documentation. You may need tax forms, pay stubs, or bank statements.
4. Wait for a decision. This may take a few minutes, or a few days.
5. Receive loan funds. If approved, sign the final paperwork for the loan and set up direct deposit of the funds into your credit union checking or savings account. 

What if you’re denied? Consider credit union loan alternatives, such as credit cards or installment loans. Keep in mind, however, that poor credit could make these options more expensive.

If you don’t have an urgent need to borrow, you might focus on improving your credit. You could also explore options for tapping home equity. RenoFi partners with a network of credit unions to offer home equity and personal loans. It could be another option or your next step if a credit union personal loan isn’t the right move for you.

Recap of the best credit union personal loans