Can I get a loan from a credit union with bad credit?

The minimum credit score for personal loan approval is 580, depending on the lender. That means it is possible to get an unsecured personal loan with a bad credit score, though such a loan will likely have an origination fee.

For your reference, WalletHub researched some of the most popular lenders to find out more about their specific loan requirements.... read full answer

Credit Score for Personal Loan Approval by Lender

*According to multiple third-party sources.

Your credit score is a measure of how risky it is for lenders to let you borrow money. The higher your score is, the better your chances of approval are and the better terms you’re likely to receive. Your credit score comes from a combination of factors that include your payment history, credit utilization, length of credit history, recent inquiries, and diversity of accounts.

But your credit score is far from the only thing that matters when it comes to personal loan approval. Lenders consider many other factors, including your income, existing debts, monthly expenses and more.

The minimum credit score needed for a personal loan with no origination fee and no collateral requirement is 660, which is fair credit. And borrowers will need good credit or excellent credit – a credit score of 700 or higher – to get the best personal loan rates. Personal loans for credit scores under 700 tend to be for relatively low amounts and have high APRs.

If your credit score is below 585, lower in the bad credit range, you still have options. For example, you could opt for a secured loan, where you put up something valuable as collateral. If you fail to pay back the loan, the lender can take the collateral as compensation. Because this greatly reduces the risk for the lender, people with any credit score may be considered for secured loans.

You can check your credit score for free on WalletHub. You’ll also get personalized advice for how to improve your score. The best way to estimate your odds of approval for a personal loan is to check to see if you’re pre-qualified for any offers before submitting an official application.

There’s no such thing as credit union personal loans for non-members. You have to be a member of a credit union to apply for one of its personal loans, credit cards or other financial products. Fortunately, there are a number of credit unions that are open to anyone, no matter where you live. You still have to become a member to take out a personal loan from them. But becoming a member may be as easy as making a small one-time donation to a charity or joining an organization for free.... read full answer

With most credit unions, membership is limited to people who live, work, worship or attend school in a certain area. Other ways to qualify include working at affiliated companies or being related to a member. You can find credit unions in your area and learn about what products they offer by using WalletHub’s free credit union search tool.

If you don’t find any good personal loan offers from credit unions in your area, you have other options.

Credit unions where anyone can be a member:

• Alliant Credit Union: Make a one-time $5 donation to Foster Care for Success.
• Aspire Federal Credit Union: Join the Marine Mammals Stranding Center for $25/year.
• Connexus Credit Union: Make a one-time $5 donation to the Connexus Association.
• First Tech Credit Union: Join the Financial Fitness Association for $8/year.
• Georgia’s Own Credit Union: Join the Georgia’s Own Foundation for a one-time fee of $10.
• Lake Michigan Credit Union: Make a one-time $5 donation to the ALS Foundation.
• NASA Federal Credit Union: Get a free National Space Society membership.
• Pentagon Federal Credit Union: Make a one-time $17 donation to the National Military Family Association or Voices for America’s Troops.
• SCE Federal Credit Union: Make a one-time $10 donation to the Center for Financial Empowerment.

You can’t get a personal loan from a credit union if you don’t want to become a member. But credit unions are not your only option when it comes to personal loans. You can also apply with banks or online lenders. These options do not require membership, so you won’t need to pay any kind of joining fee. And while some banks and online lenders only service certain areas of the country, there are tons that are nationwide.