What is a signature loan from a credit union? This question is about Signature Loans Guide

A signature loan from a credit union is a lump sum of money with a fixed interest rate that does not require collateral other than a signature from the borrower. This signature is a promise to the credit union that you will repay the loan and makes the loan agreement legally binding. The best signature loans from a credit union are from PenFed Credit Union, which offers $500 - $50,000, APRs of 5.99% - 17.99% and repayment periods of 12 - 60 months. You’ll need a credit score of at least 600 to qualify, according to multiple third-party sources. Best Signature Loans From Credit Unions Credit Union Loan Amounts APRs Repayment Periods PenFed Credit Union $500 - $50,000 5.99% - 17.99% 12 - 60 months Connexus Credit Union $5,000 - $25,000 5.99% - 18% 24 - 84 months Alliant Credit Union $1,000 - $50,000 6.24% - 17.24% 12-60 months First Tech Federal Credit Union $500 - $50,000 6.7% - 18% 24 - 48 months NASA Federal Credit Union $500 - $30,000 11.05% - 18% 12 - 36 months Navy Federal Credit Union $250 - $50,000 7.49% - 18% Up to 60 months (up to 180 for home improvement) For more information about the top-ranked offers, check out WalletHub’s picks for the best personal loans from a credit union.

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What is a signature loan from a credit union?

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This question is about Signature Loans Guide

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Grace Enfield, Content Writer

@grace_enfield • 07/18/22 This answer was first published on 07/18/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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A signature loan from a credit union is a lump sum of money with a fixed interest rate that does not require collateral other than a signature from the borrower. This signature is a promise to the credit union that you will repay the loan and makes the loan agreement legally binding.

The best signature loans from a credit union are from PenFed Credit Union, which offers $500 - $50,000, APRs of 5.99% - 17.99% and repayment periods of 12 - 60 months. You’ll need a credit score of at least 600 to qualify, according to multiple third-party sources.

Best Signature Loans From Credit Unions

Credit Union	Loan Amounts	APRs	Repayment Periods
PenFed Credit Union	$500 - $50,000	5.99% - 17.99%	12 - 60 months
Connexus Credit Union	$5,000 - $25,000	5.99% - 18%	24 - 84 months
Alliant Credit Union	$1,000 - $50,000	6.24% - 17.24%	12-60 months
First Tech Federal Credit Union	$500 - $50,000	6.7% - 18%	24 - 48 months
NASA Federal Credit Union	$500 - $30,000	11.05% - 18%	12 - 36 months
Navy Federal Credit Union	$250 - $50,000	7.49% - 18%	Up to 60 months (up to 180 for home improvement)

For more information about the top-ranked offers, check out WalletHub’s picks for the best personal loans from a credit union.

Answer Question

What is the difference between a signature loan and an installment loan?

A signature loan is an unsecured installment loan, so there isn’t much of a difference between the two terms. The biggest distinction is that a signature loan is always unsecured, while an installment loan can be either secured or unsecured. Signature loans also have stricter approval requirements than secured installment loans, and although signature loans don’t necessarily have to be paid in installments, they almost always are.... read full answer

Types of Installment Loans

Personal Loans / Signature Loans

Auto Loans

Mortgage Loans

Credit-builder Loans

Home Equity Loans

If you’re having trouble deciding which type of loan you should get, check out WalletHub’s complete picks for the best signature loans and the best installment loans. You can then pre-qualify for personal installment loans using our free pre-qualification tool.

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What is the difference between a signature loan and a personal loan?

The only difference between a signature loan and a personal loan is the collateral associated with them. A signature loan is always unsecured, which means it doesn't require collateral, and a personal loan can be unsecured or secured by collateral. The term "signature loan" is actually just another way of referring to an unsecured personal loan.... read full answer

Getting a signature loan may be difficult because it is risky for lenders to offer them due to the lack of collateral. To qualify for one, you'll need to be at least 18 years old, have a credit score of at least 580 and have enough income to make monthly payments.

If you're ready to start comparing options, check out the top-ranked signature loans and personal loans on WalletHub. You can also pre-qualify with multiple lenders by using WalletHub's free pre-qualification tool.

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Do signature loans hurt your credit?

Signature loans can hurt your credit score if the lender does a hard inquiry into your credit history, which will drop your score by about 5 - 10 points. Your credit score will also go down if you do not make the payments on time.

If you make on-time payments, however, the lender will report positive information to the credit bureaus. By the end of the loan term, your credit score should be higher than when you started. ... read full answer

To see how a signature loan could affect your credit score in particular, check out the free credit score simulator on WalletHub.

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