Municipal Credit Union is a better choice for personal loans if you are a New York City resident and prefer personal service. PenFed does business nationwide, making it a good choice for personal loans no matter where you live.
PenFed is also Bankrate’s top credit winner, offering loan amounts starting at $600. That’s less than the $1,000 minimum required at Municipal Credit Union.
As long as you qualify for membership and meet the loan requirements, you may be able to borrow up to $50,000 from either lender.
Municipal Credit Union vs. PenFed at a glance
Both Municipal Credit Union and PenFed have good terms and identical competitive rates. PenFed offers the option to add a co-borrower, but Municipal offers a wider range of repayment terms.
| Municipal Credit Union | Pen Fed | |
|---|---|---|
| Bank rate score | 4.4 | 4.7 |
| Better for | Longer terms | Joint applications |
| Loan amounts | $1,000 – $50,000 | $600 – $50,000 |
| APRs | 7.99%-17.99% (with automatic payment) | 7.99%-17.99% |
| Length of the loan | 12-72 months | Up to 60 months |
| Costs | Late payment fees | Late payment and insufficient funds |
| Minimum credit score | Not specified | 700 |
| Time for financing | Not specified | As soon as the next working day |
Municipal credit union personal loans
Best for: Longer terms
Bankrate’s opinion
Municipal Credit Union was founded in 1916 to serve the banking needs of New York City residents. Membership is open to those who reside in New York City, New York State or federal employees, or family members of existing members.
The personal loans offered by Municipal Credit Union allow customers to borrow up to $50,000 with terms as short as 12 months or as long as 72 months.
Unfortunately, the site doesn’t provide much information about what’s needed to qualify for a personal loan, aside from noting that a pay stub and credit card information may be needed for debt consolidation.
Positives
- Autopay discount.
- Longer loan terms than PenFed.
- Competitive APRs.
Disadvantages
- The financing timeline is not disclosed
- Unclear eligibility criteria.
- Restricted to New York residents.
Personal loans from PenFed
Best for: adding a co-borrower
Bankrate’s opinion
PenFed offers nationwide loans to its members and also serves Guam, Puerto Rico and Okinawa. Membership is required to access PenFed’s financial products. Fortunately, membership is open to almost anyone in the US
PenFed allows joint applications, which is a plus if you need to borrow more than you qualify for on your own. There are no origination fees and you can only borrow $600. The maximum term is 60 months, shorter than the repayment term of 72 months offered by the Municipal Credit Union. The small minimum loan amount and short term make it a good option for small expenses.
If you have problems with your credit history, you may not meet PenFed’s credit score requirement. The minimum score, 700, is within the good credit range.
Positives
- Joint applications.
- Lower minimum loan amount than Municipal Credit Union.
- Competitive April.
Disadvantages
- Unclear eligibility criteria.
- Late and NSF fees.
- Minimum credit score of 700.
How to Choose Between Municipal Credit Union and PenFed
Because they are both credit unions, Municipal Credit Union and PenFed offer similar APRs, loan amounts and products. But PenFed is the clear choice for non-New York residents, as membership is open to everyone. American Municipal Credit Union has a slightly more competitive range of repayment terms if you live in its service region.
Municipal Credit Union has longer repayment terms
Municipal Credit Union offers members terms of up to 72 months, which can result in a significantly lower payment than you would pay with PenFed’s maximum term of 60 months.
MCU does not publish a minimum credit score or other details about how you qualify. You may qualify with a score lower than PenFed’s minimum of 700, but since there’s no prequalification, you’ll have to pass a hard credit check to find out.
Municipal Credit Union also does not specify how long it will take to fund a personal loan. Make sure you ask about the term for financing when you apply.
PenFed offers joint applications
If you need personal loans outside the New York area, PenFed personal loans are available in all US states and territories. They advertise next day financing, which gives you more certainty about when you will receive your money compared to Municipal Credit Union.
You can also qualify jointly with someone else, making it easier to afford the higher payment that comes with PenFed’s 60-month minimum term.
Compare lenders before applying
Credit unions are a good choice for personal loans if you prefer to have all your banking products under one roof. They offer regular banking products such as checking and savings accounts, in addition to loan products such as personal loans, car loans and even mortgages. You must open an account to become a member and qualify, but both Municipal Credit Union and PenFed allow you to easily apply for membership online.
Always compare personal loan rates from other sources to ensure you get the best loans, lowest rates, and best terms for your financial goals.
