The best credit union debt consolidation loans are those offered by Alliant Credit Union, Pentagon Federal Credit Union and Connexus Credit Union. They have APRs below 8%, offer loan amounts up to $20,000-$50,000, and are available to the general public.
Most credit unions have strict requirements for membership. Typically, those requirements are living/working in a certain area or being related to an existing member. But Alliant, PenFed and Connexus are among a small group of credit unions whose membership is open to everyone. Regardless of location or affiliation, anyone can join by making a small donation.
It’s important to note that while these credit unions don’t offer products specifically called “debt consolidation loans,” they offer personal loans that can be used for any purpose. That includes debt consolidation. And that is the case with most lenders, not just credit unions.
Credit union debt consolidation loan options:
- Alliant Credit Union: Loans up to $50,000 with APRs as low as 6.49%. Anyone can join with a $5 donation to Foster Care for Success.
- Connexus Credit Union: Loans up to $20,000 with APRs as low as 7.99%. Anyone can join with a $5 donation to the Connexus Association.
- Pentagon Federal Credit Union: Loans up to $25,000 with APRs as low as 6.49%. Anyone can join with a $17 donation to the National Military Family Association or Voices for America’s Troops.
- Georgia’s Own Credit Union: Loans up to $25,000 with APRs as low as 8.24%. Anyone can join with a $10 donation to the Georgia’s Own Foundation.
- First Tech Credit Unions: Loans up to $50,000 with APRs as low as 10.25%. Anyone can join with an $8/year Financial Fitness Association membership.
- NASA Federal Credit Union: Loans up to $30,000 with APRs as low as 13.15%. Anyone can join with a free National Space Society membership.
Many banks and online lenders offer lower minimum APRs than some of these credit unions. But one important feature of credit unions is their mandatory APR cap. Federal credit unions cannot charge more than an 18% APR. And state credit unions have similar limits set by each individual state.
Banks and online lenders can have APRs as high as 36%. So a credit union can be a good place to get a cheaper debt consolidation loan.
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