Municipal Credit Union personal loans: 2024 Review

Municipal Credit Union is best for consolidating debt 

When looking to consolidate debt, it is best to find a lender with the lowest possible costs and associated fees. Municipal Credit Union (MCU) offers personal loan annual percentage rates starting at a competitive 7.99 percent. Rates start at just 2.99 percent for share-secured loans. This lender also has low fees, only charging a $25 late payment fee.

These factors and its low minimum loan amount of $1,000 make Municipal Credit Union a favorable option for borrowers looking to consolidate their debt.

Municipal credit union personal loan purposes 

MCU states its loans can be used for any legal purpose, which is a rarity among personal loan lenders. In many states, for example, you cannot use their loans to fund higher education and business expenses.

Funds cannot be used for any illegal transactions. This includes, but isn't limited to, gambling, embezzlement and identity theft. 

Where Municipal Credit Union personal loans stands out 

• Physical branches: If you prefer face-to-face interaction with a loan officer and live in New York City, Municipal Credit Union could be an ideal lender for you. There are 14 brick-and-mortar locations you can visit if you need assistance with your application or lending process. 
• Few fees: Unlike some lenders, MCU doesn't charge origination fees or prepayment penalties. This could help you save money, because fees like those can decrease your loan value or increase what you owe.
• Low APRs: While not the lowest rates on the market, MCU's minimum annual percentage rate (APR) is low compared to most industry lenders at 7.99 percent. 

Where Municipal Credit Union personal loans falls short 

• Membership requirements: To apply for a personal loan, you must become a member. Individuals who live, work, worship or attend school in New York City, those who work for New York state or federal employers and immediate family members of existing members can qualify. 
• Eligibility criteria not disclosed: MCU doesn’t list the minimum credit score or income to qualify for its personal loans. However, it offers a share secured loan option geared toward helping individuals build and improve their credit. 
• Unclear funding timeline: Municipal Credit Union might not be right for you if you need the funds within a few business days. Unlike many institutions, MCU doesn't state how long it will take you to receive your funds. However, personal loan approvals can take as little as a few minutes.

How this lender compares

Municipal Credit Union vs. Achieve Personal Loans

Achieve lets you borrow up to $50,000 to consolidate debt, make a big-ticket purchase or meet other financial goals. A major upside is the rapid approval process and funding times — some borrowers receive loan proceeds as soon as 24 hours following approval.

However, Achieve charges an origination fee of up to 6.99 percent. MCU does not charge an origination fee. Its maximum APR is also significantly higher than what Municipal Credit Union charges, meaning MCU may be better if you have a less-than-stellar credit rating.

Municipal Credit Union vs. PenFed Credit Union

PenFed Credit Union offers loans with the same APR range as MCU, but PenFed has a lower loan minimum amount of $600. Unlike MCU, PenFed advertises financial assistance for borrowers who face temporary or permanent hardship. 

However, PenFed’s loan terms only go up to 60 months. That makes MCU a better choice if you need the smaller monthly payment a longer loan term offers.

How Bankrate rates Municipal Credit Union

Bankrate considers 20 factors when reviewing lenders. We weigh what makes a lender competitive on the market and appealing to borrowers with varying needs. The Bankrate Score for personal loans consists of four categories:

• Availability: Availability covers loan amounts, qualification requirements, available terms and time to approval and funding. Lenders that serve the widest variety of customers and needs with speedy loans get the highest scores.
• Affordability: This category measures interest rates, penalties and fees. Lower rates and fees and fewer potential penalties result in a higher score. We also give bonus points to lenders offering rate discounts, grace periods and the ability to change borrowers' due dates.
• Customer experience: Customers want a convenient application process and easy ways to contact the lender and manage their loan. We score lenders on their customer service hours and whether they offer an online application and account access, with a bonus for offering a highly rated app.
• Transparency: To effectively shop around, customers should be able to judge their eligibility and potential rates without a hard credit check. A lender scores higher if its website clearly discloses credit requirements, rates and fees, in addition to offering prequalification.