Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (2023)

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Ryan Wangman, CEPF

2022-10-20T19:21:19Z

Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (1)

Municipal Credit Union/Insider
  • Pros and cons
  • Who is Municipal Credit Union best for?
  • How Municipal Credit Union personal loans compare
  • Frequently asked questions
  • Is Municipal Credit Union trustworthy?

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Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (2)

Municipal Credit Union Personal Loan

3.5/5

3.5 out of 5 Stars

Fees

$25 late payment penalty

Regular Annual Percentage Rate (APR)

6.95% - 14.95%

On Municipal Credit Union's website

Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (3)

Municipal Credit Union Personal Loan

3.5/5

3.5 out of 5 Stars

(Video) 3 Best Personal Loan Companies

On Municipal Credit Union's website

Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (4)

On Municipal Credit Union's website

Details

Regular Annual Percentage Rate (APR)

6.95% - 14.95%

Fees

$25 late payment penalty

Editor's Rating

3.5/5

3.5 out of 5 Stars

Pros & Cons

Pros

(Video) How & Where to Get a Personal Loan (FULL GUIDE)

Excellent rates

Wide loan amount range

Variety of term lengths to choose from

Cons

Membership requirements

Late fee

Long approval process

Highlights

More Information

  • Repayment terms range from 12 to 72 months
  • To join MCU, you generally must work at a qualifying New York institution or be a family member of someone with an account
  • Up to 5 days to finish approval process, get your funds 24 hours later

Pros and cons of Municipal Credit Union personal loans

Who is Municipal Credit Unionbest for?

Municipal Credit Union is best for borrowers who want top-notch rates and a multitude of term options for their loan. You'll be able to borrow as little as $1,000 and as much as $50,000, while choosing from a term length between one to seven years.

The biggest knock on the credit union is its tough eligibility requirements. But if you qualify, the lender is a fantastic option.

How Municipal Credit Union personal loans compare

How Municipal Credit Union compares

  • Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (5)

    Municipal Credit Union Personal Loan

  • Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (6)

    Navy Federal Credit Union Personal Loan

  • Municipal Credit Union personal loans review: First-class rates, but stringent eligibility requirements (7)

    First Tech Personal Loan

Editor's rating

3.5/5

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Regular Annual Percentage Rate (APR)

6.95% - 14.95%

Recommended credit

640

Editor's rating

3.75/5

Regular Annual Percentage Rate (APR)

7.49% to 18.00%

Recommended credit

Undisclosed

Editor's rating

3.75/5

Regular Annual Percentage Rate (APR)

6.70% to 18.00%

Apply for a loan

On Municipal Credit Union's website

Check rates

On Navy Federal Credit Union's website

Compare rates

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On First Tech Federal Credit Union's website

You can get the smallest loan amount with Navy Federal Credit Union, as the credit union offers loans as small as $250. However, First Tech Federal Credit Union and Municipal Credit Union have similar minimums. The former will lend as little as $500, while the latter will let you borrow a minimum of $1,00. All three give you the option to borrow as much as $50,000.

First Tech has the simplest requirements to join. You can qualify to become a member simply by joining the Financial Fitness Association for $8. You may also be eligible if you live or work in certain parts of Oregon.

Navy Federal has more stringent membership requirements, as you only qualify if you are an active military member, veteran, or employee or retiree of the Department of Defense. Family members of any of the aforementioned groups are also eligible.

To Join Municipal Credit Union, you'll generally need some type of New York ties. This includes people who are employed by the New York City, or federal and state employees who work in one of the city's five boroughs. Family members of customers who already have an account are also eligible.

See our ratings methodology for personal loans »

Frequently asked questions

Is Municipal Credit Union trustworthy?

Municipal Credit Union has an A- rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB says the reason for its rating is the failure of Municipal Credit Union to respond to one complaint against it. The BBB evaluates companies by looking at their response to consumer issues, truthfulness in advertising, and transparency about business practices.

Municipal Credit Union hasn't been involved in a scandal in the past three years. Because of its solid history and very good BBB score, you might consider getting a loan from the lender. However, you aren't guaranteed to have a good relationship with the credit union, so reach out to others who have used the lender first before making a decision.

Is it better to get a loan through a credit union?

You can get a loan through many different avenues, including credit unions, banks, and online lenders. Credit unions are a great option because they often offer low rates and excellent customer service, though there is frequently a membership requirement to apply. There's no one-size-fits-all answer to this question, and different borrowers might prefer different options.

Do credit union loans affect your credit score?

Yes, personal loans from a credit union will affect your credit score. Payments, or lack thereof, will be reported to the three major credit bureaus and may improve your score if you pay reliably and on time.

Ryan Wangman, CEPF

Loans Reporter

Ryan Wangman is a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF). In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >>

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.

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FAQs

How long does it take a credit union to review a loan? ›

95%* of all credit unions loans are approved. (We like saying yes) Almost 80%** of standard loans are approved within 24 hours with just 8%** of loans taking longer than two days.

Is it easier to get a loan at a credit union? ›

Credit union loans often come with low rates and fees, which results in a lower overall cost of borrowing. 1 As an additional benefit, it can be easier to get approval for a loan through a credit union.

Which requirements are meant to be used to evaluate each of the 5 C's of credit? ›

Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.

What is the minimum salary required for personal loan? ›

Personal Loan Eligibility Criteria

The minimum salary for a personal loan for salaried individuals is INR 25,000 per Month (for residents of Mumbai and Delhi) or INR 20,000 per Month (for all other locations).

What is the minimum income required for loan approval? ›

Minimum income: Higher income indicates higher capacity to repay your loan on time, which further implies lower risk for lenders. For salaried professionals, the minimum salary requirement set by most lenders is Rs. 15,000 or above. Note that individuals with a minimum salary of Rs 25,000 are preferred by lenders.

What are the 6 requirements for a loan application? ›

Making sure that you submit these 6 pieces of information is vital:
  • Name.
  • Income.
  • Social Security Number.
  • Property Address.
  • Estimated Value of Property.
  • Mortgage Loan Amount sought.

What 4 things do you need for a loan? ›

Personal loan documents your lender may require
  1. Loan application. Each lender will have an application to initiate the loan process, and this application can look different from lender to lender. ...
  2. Proof of identity. ...
  3. Employer and income verification. ...
  4. Proof of address.
10 Oct 2022

What do banks look at to qualify for a loan? ›

Your income and employment history are good indicators of your ability to repay outstanding debt. Income amount, stability, and type of income may all be considered. The ratio of your current and any new debt as compared to your before-tax income, known as debt-to-income ratio (DTI), may be evaluated.

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