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If you are a borrower with fair credit looking for a personal loan, both Achieve and Municipal Credit Union (MCU) may be worth considering. Achieve accepts borrowers with fair credit, although your rates may be higher. MCU does not disclose minimum requirements, but it is common knowledge that credit unions are more flexible with borrowers who already have an account.
Reach vs. municipal credit union at a glance
Achieve and Municipal Credit Union offer similar loans, but Achieve is likely more accessible to most borrowers.
| Reaches | Municipal Credit Union | |
|---|---|---|
| Bank rate score | 4.7 | 4.4 |
| Better for | Fast financing | Current members |
| Loan amounts | $5,000 – $50,000 | $1,000 – $50,000 |
| APRs | 8.99%-35.99% | 8.20%-15.70% (with automatic payment) |
| Length of the loan | 24-60 months | 12-72 months |
| Cost | Origination fees up to 6.99% | $25.00 late fee |
| Minimum credit score | 620 | Not known |
| Time for financing | Within 24 to 72 hours | Not known |
Obtain personal loans
Positives
- Loans are funded within 72 hours.
- Joint applications available.
- Accepts fair credit.
Cons
- Origination fee.
- High minimum loan amount.
- High maximum APR.
Achieving personal loans is relatively competitive for borrowers with fair credit. Although it has a high maximum annual percentage rate (APR), the initial APR is only 8.99 percent – much lower than other fair credit lenders.
The origination fee ranges from 1.99 to 6.99 percent, which is lower than what some lenders charge but still not the best-case scenario. Ideally, you should try to find a lender that doesn’t charge an origination fee.
If you have limited options because of your credit score, Achieve’s compensation is competitive when you consider what other fair credit lenders charge.
And unlike Municipal Credit Union, Achieve is upfront about minimum credit qualifications and how long it will take to receive a loan. Moreover, the eligibility criteria are also less stringent compared to MCU.
However, a major drawback of the lender is that it is not available in all states, but due to its eligibility criteria, it can serve a wider range of borrowers.
Municipal credit union personal loans
Positives
- No origination fees.
- Low maximum APR.
- Loan terms up to 72 months.
Cons
- MCU membership required.
- Eligibility criteria not disclosed.
- Funding rate not stated.
Municipal Credit Union generally has a better product if you qualify for membership. Membership is limited to people working in New York State and employees of companies that provide health insurance or hospital supplies in New York.
If you qualify, an MCU personal loan is a good deal. The maximum APR is set at just 15.7 percent, which is significantly lower than the maximum APR for an Achieve loan.
You can also borrow less and for longer, which can reduce the overall borrowing costs. Additionally, MCU does not charge origination fees, so you may end up paying less overall than if you borrowed a similar loan from Achieve.
How to Choose Between Achieve and Municipal Credit Union
Both Achieve and Municipal Credit Union have personal loans up to $50,000. However, Achieve has a high minimum loan amount of $5,000, compared to MCU’s $1,000 minimum.
Overall, Achieve may be the better choice if you can’t open an account with Municipal Credit Union. But if you can open an account – or are already a member – MCU may be the cheaper option.
Achieve has fast financing
Reach is best for borrowers who have fair credit and need fast financing. Turnaround time is one to three business days, which is about average for an online lender. The other fees and costs to borrow are also comparable to many other personal loans on the market.
That said, a personal loan from Achieve can be more expensive than a loan from MCU. If you are able, pre-qualify with both lenders to compare rates and choose the one that offers the best deal.
Municipal Credit Union has better benefits for members
Despite comparable loan sizes, MCU offers much lower rates and has no origination fee. But while this means you may qualify for a much cheaper loan, MCU isn’t for everyone. Membership requirements are strict – and if you don’t qualify, you won’t be able to borrow.
Compare lenders before applying
Achieve and Municipal Credit Union offer standard personal loans that suit a variety of borrowers. Both are affordable loan options that suit different budgets. However, you should always compare them with other lenders to determine which option best suits your budget and needs.
