If you need to borrow money, credit union personal loans can be an excellent choice because of their affordability and individualized customer service. Credit unions often restrict membership by location, employer or other factors, making them more personalized to your needs. Credit unions also cap personal loan annual percentage rates (APRs) at 18%, much lower than many lenders and banks.
Getting approved for a personal loan at a credit union can be challenging since you’ll need to meet criteria to both become a member of the financial institution and get a loan. If you don’t qualify with a credit union, consider applying for a personal loan with a bank or online lender.
Generally, you’ll want a credit score of at least 640 to qualify for a loan, but the credit score requirement will vary by lender. You can check your credit score for free through LendingTree’s platform.
Credit union loans work like personal loans from a bank or online lender. The biggest difference is that you likely will have to become a member of the credit union first. You can check if you prequalify for a loan, then if you prefer its rates and fees, you can proceed with the loan process.