In a Nutshell
If you’re looking for a personal loan to finance a major purchase or to consolidate high-interest debt, Municipal Credit Union offers loans with competitive interest rates and loan terms as long as 72 months. But you must be a member of the credit union to be eligible for a loan, and membership isn’t open to everyone.Pros
- Competitive interest ratesnLower rates with automatic paymentsnCo-signers permitted
Cons
- Late-payment feesnMust be a member of Municipal Credit UnionnNot available in most states
What you need to know about a Municipal Credit Union personal loan
Municipal Credit Union, or MCU, is the oldest credit union in New York state. With more than 550,000 members, MCU offers a wide range of financial products, including auto loans, credit cards, checking accounts and savings accounts.
To qualify for a loan with MCU, you need to be a member. MCU personal loan amounts range from $1,000 to $50,000, with repayment terms of 12 months to 72 months for unsecured loans. MCU lets borrowers use the money for a variety of purposes, including debt consolidation, new appliance purchases or even tuition payments.
Here are some more things you should know about MCU loans before submitting an application.
MCU loans have competitive interest rates
MCU personal loans have competitive interest rates. Consolidating high-interest credit card debt with a loan from MCU could help you save money if you qualify for a favorable interest rate.
MCU offers its lowest interest rates for loans of $15,000 or less. If you need to borrow more than $15,000, higher rates apply. Your credit is a factor in determining rates, too.
Automatic payment options available
Signing up for automatic payments may help you avoid missing a loan payment — and it can help you qualify for a lower interest rate on your MCU loan.
The low rates MCU advertises are based on loans set up with automatic payments. If you cancel automatic payments, MCU says that your APR will increase by 0.50%. That can be a big difference that can affect how much you pay back in interest over time.
You can apply with a co-signer
According to a company representative, MCU accepts applications with co-signers. So if you don’t qualify for a loan on your own, you may still be able to qualify by applying with a co-signer.
As long as your friend or relative is also a member of MCU, that person can apply for a loan with you. This may help you qualify or even get a lower interest rate.
You must be an MCU member to qualify for a loan
To apply for a loan, you must be an MCU member. You can join if you’re a public employee of the city of New York, attend certain colleges in the area or work for another qualifying employer. And if you have a family member who’s already an MCU member, you may be eligible for membership.
A closer look at an MCU personal loan
- Late-payment fee: If you fall behind on your loan payments, MCU charges a $25 late fee.
- No prepayment penalties: According to a company rep, if you want to pay off your personal loan early, you won’t have to pay a fee for that transaction.
- Secured loans available: If you have money in an MCU savings account, you can apply for a secured loan to borrow against those funds. For secured loans, you can borrow as little as $500 and may be approved quickly without needing a credit check. And you may qualify for a lower rate than you’d get with an unsecured personal loan from MCU.
Who an MCU loan is good for
MCU loans may be a good option for credit union members with strong credit. MCU loans have competitive interest rates, and if you use one of these loans to consolidate debt, it could help you save money in interest rate payments over time.
If you need a co-signer for your application and know someone who qualifies, an MCU loan could be a good option for you.
How to apply for an MCU loan
We reached out to MCU for loan application information, which came from an MCU representative.
You can apply for an MCU personal loan in person at a branch, via phone or online. You’ll have to join MCU if you’re not already a member.
To get started with a loan application, you’ll need the following information:
- Name
- Address
- Social Security number
To be considered for approval, MCU also requires the following documentation:
- Proof of income, such as a pay stub or tax return
- Government-issued photo ID for each applicant
After you submit your application, MCU will review your information and decide whether to issue you a loan.
If you’re approved, you may be able to get your loan funds through direct deposit into your MCU bank account as soon as the same day.
Not sure if Municipal Credit Union is right for you? Consider these alternatives.
- Wells Fargo: If you need to borrow more money than MCU’s maximum, Wells Fargo offers personal loans up to $100,000.
- Best Egg: If you aren’t eligible for MCU membership and still want to find out quickly if you’re approved, consider applying for a loan from Best Egg.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.