Top Credit Union Personal Loans of 2025

A credit union can be an ideal first stop when you’re looking to borrow money, especially if you have a fair or bad credit score (689 or lower). Credit unions offer low rates and flexible terms and consider factors beyond credit score when evaluating your application.

Credit union loans can be used for debt consolidation, emergency expenses or home improvement projects.

If you don’t have a neighborhood credit union, nationwide options are available. The credit unions listed below lend in all 50 states and Washington, D.C., and you can apply for membership online.

» MORE: See where to get a personal loan

You may be eligible for an Alliant Credit Union member if you live or work near the corporate headquarters in Chicago, if you work at or retired from one of Alliant’s partner businesses and organizations, or if you’re a family member or domestic partner of an Alliant member. You can also join by pledging to become an Alliant Credit Union Foundation digital inclusion advocate. The credit union will cover the $5 fee to join.

Why it stands out: Alliant offers a wide range of personal loan amounts and can approve most borrowers the same day they apply. Once you sign the loan documents, Alliant can also provide same-day funding.

» READ: NerdWallet’s Alliant personal loan review

First Tech mostly serves tech companies and their employees with personal loans up to $50,000.

Why it stands out: First Tech offers co-signed and joint loans to personal loan borrowers. Adding someone with a higher credit score or larger income to your application may boost your chances of getting approved. Co-borrowers are equally responsible for missed payments, but with a co-signed loan, only the primary applicant has access to the loan funds.

» READ: NerdWallet’s First Tech personal loan review

PenFed is known for serving military members, but anyone can join the credit union by opening a savings account with an initial deposit of $5.

Why it stands out: Not only can anyone join PenFed, but unlike other credit unions, you can apply for membership as part of the loan application, letting you combine both these steps into one. PenFed also lets you pre-qualify online to see your potential rate, loan amount and monthly payment without affecting your credit score, so you get an idea of your loan options before you apply.

» READ: NerdWallet’s PenFed personal loan review

To be eligible for membership at Navy Federal, you must be active duty, retired or a veteran of any military branch; a Department of Defense civilian; or a family or household member.

Why it stands out: In addition to focusing on military members and their families, if you’re active duty or retired military, you can qualify for a 0.25 percentage point discount on your personal loan, which lowers the overall interest you’ll pay on the loan.

» READ: NerdWallet’s Navy Federal personal loan review

Credit unions are not-for-profit financial organizations that serve members who live, study, work or worship in a particular area. Each credit union is controlled by members, who elect volunteer board members to oversee the organization.

If you meet the credit union’s requirements, you can apply for membership, usually online. You may be required to open an account with an initial minimum deposit as low as $5. After your membership is approved, you can access banking services, including personal loans.

Once you apply for a loan and are approved, you’ll receive the funds in your account and then repay the credit union in fixed monthly installments, with terms ranging from two to seven years.

» MORE: Boost your chances of getting your personal loan approved

Pros and cons of personal loans from credit unions

As of December 2024, the average annual percentage rate for a three-year federal credit union loan was 10.80%, according to data from the National Credit Union Administration.

Rates for unsecured personal loans will depend on your credit score, credit history, income and debts.

Rates can also vary by type of credit union; federal credit unions cap APRs at 18%. Your credit union may also charge an application fee that isn't part of the APR.

» MORE: See average personal loan rates

1. Check eligibility criteria and apply for membership. If you’re not already a member, review the credit union’s membership criteria, as some only serve specific audiences, like military members or educators. You may be able to apply for a membership online or at the credit union’s branch. Some credit unions require you to open a savings account with a small deposit to gain membership. 

2. Pre-qualify or research loan rates and terms. Pre-qualifying for a personal loan lets you preview your rates and terms without a hard credit inquiry. If your credit union doesn't offer pre-qualification, talk to the branch or research loan options online to ensure they offer the loan amount and term you need. Use a personal loan calculator to estimate your monthly payments. 

3. Submit an application. Many credit unions allow online loan applications, which typically ask for your personal and contact information, Social Security number, and employment and income details — plus information about any current debts. Local or smaller institutions may require you to apply in-person or finalize the loan at a branch. The lender will perform a hard credit check when you apply, which can cause your score to dip a few points.

4. Sign loan documents and get funded. A lender will send you a loan agreement to sign when it approves your loan application. Read over this document carefully and make sure you understand all the terms before signing. Once you sign, the lender will usually disperse funds within the week, though some can send the money the same or following day. Your first loan payment is typically due in 30 days.

» MORE: How to get a personal loan

Tips for getting a credit union loan with bad credit

Credit unions consider your whole financial picture, including your credit history and standing as a member when reviewing a loan application, making it a good choice for borrowers with bad credit (629 credit score or lower).

Still, a higher score will get you a lower rate, so it pays to check your credit score before applying for a loan and do what you can to build your credit.

Adding a co-signer or co-borrower with strong credit can help you qualify or get a lower rate. Opting for a secured loan can also strengthen your loan application.

Lenders may view a large loan amount as risky, so make sure you only apply for the amount you need.

For more loan options, also consider online lenders who offer loans to borrowers with low credit scores.

» MORE: Bad-credit loans from online lenders

If you’re in need of a small, short-term loan, some credit unions offer payday alternative loans (or PALs). These loans range from $200 to $2,000 with repayment terms from one to 12 months.

Federal credit unions cap interest rates for PALs at 28%, making them more affordable than traditional payday loans, which can have APRs around 400%. Application fees for payday alternative loans at federal credit unions cannot be more than $20.

Personal loans are offered by credit unions, banks and online lenders, but loan amounts, terms and the experience of getting a loan are different at each.

Banks generally lend to borrowers with good to excellent credit scores (above 689). They have low rates and may provide discounts or a faster application process to existing customers.

Online lenders offer loans to borrowers across the credit spectrum, plus large loan amounts and a wide range of terms, but rates can be higher than credit unions or banks. Online lenders provide a streamlined application process and typically have fast funding.

If you are already a credit union member or are interested in becoming one, a credit union may get you the cheapest loan. NerdWallet recommends comparing loans from multiple lenders.