Skip to Main Content

Municipal Credit Union personal loans: 2024 Review

Updated on Jan. 1, 2024
Bankrate logo

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

At a glance

4.2
Rating: 4.2 stars out of 5
Bankrate Score
Caret Down
Availability
Rating: 4 stars out of 5
4.0
Affordability
Rating: 3.4 stars out of 5
3.4
Customer Experience
Rating: 4.7 stars out of 5
4.7
Transparency
Rating: 4 stars out of 5
4.0

About Bankrate Score

Municipal Credit Union, the largest credit union in metropolitan New York, was founded in 1916 to help city workers avoid loan sharks. It now has 14 branches, more than 600,000 members and more than $4 billion in assets.

Moneybag
Loan amount $1,000-$50,000
Rates
APR from 8.20%-15.70% (with autopay)
Clock Wait
Term lengths 12-72 months
This lender is best for borrowers looking to consolidate debt.

Find personal loan offers in 2 minutes or less

Choose your loan amount and answer a few questions to see personalized offers.

Find my best rates

Best for consolidating debt

When looking to consolidate debt, it is best to find a lender with the lowest possible costs and associated fees. Municipal Credit Union offers APRs starting at 8.20 percent for personal loans — competitive, though not the lowest on the market. Rates start at just 2.99 percent for share-secured loans. This lender also has low fees, only charging a $25 late payment fee.

These factors and its low minimum loan amount of $1,000 make Municipal Credit Union a favorable option for borrowers looking to consolidate their debt.

Municipal Credit Union pros and cons

PROS

  • Checkmark

    Physical branches.

  • Checkmark

    Few fees.

  • Checkmark

    Low APRs.

CONS

  • Close X

    Membership requirements.

  • Close X

    Eligibility criteria not disclosed.

  • Close X

    Slower approval process and funding times.

Do you qualify?

You must be an MCU member to qualify for a loan. Membership is restricted to:

  • People who live, worship, work or are enrolled in school in New York City.
  • People who work for federal or state government in New York.
  • Existing members’ immediate family.

What Municipal Credit Union doesn't allow loan funds to be used for

MCU states its loans can be used for any purpose, which is a rarity among personal loan lenders. In many states, for example, you cannot use their loans to fund higher education and business expenses.

How this lender compares

logo
Rating: 4.2 stars out of 5
4.2
Bankrate Score
APR from
8.20%-15.70% (with autopay)
Loan Amount
$1,000-$50,000
Term Length
12-72 months
Min Credit Score
Not disclosed
logo
Rating: 4.7 stars out of 5
4.7
Bankrate Score
APR from
8.99% to 35.99%
Loan Amount
$5,000 to $50,000
Term Length
24 to 60 months
Min Credit Score
620
logo
Rating: 4.7 stars out of 5
4.7
Bankrate Score
APR from
7.99%-17.99%
Loan Amount
Up to $50,000
Term Length
Up to 60 months
Min Credit Score
Not disclosed

Municipal Credit Union vs. Achieve Personal Loans

Achieve lets you borrow up to $50,000 to consolidate debt, make a big-ticket purchase or meet other financial goals. A major upside is the rapid approval process and funding times — some borrowers receive loan proceeds as soon as 24 hours following approval.

However, Achieve charges an origination fee of up to 6.99 percent. MCU does not charge an origination fee. Its maximum APR is also significantly higher than what Municipal Credit Union charges, meaning MCU may be better if you have a less-than-stellar credit rating.

Read a full comparison of Municipal Credit Union vs. Achieve Personal Loans

Municipal Credit Union vs. PenFed Credit Union

PenFed Credit Union has similar offerings to MCU. Unlike MCU, PenFed advertises financial assistance for borrowers who face temporary or permanent hardship. However, PenFed also has a higher maximum APR than MCU, meaning if you just meet the minimum requirements, you may end up with a higher rate than you would with MCU.

Municipal Credit Union: In the details

What we like and what we don’t like

Municipal Credit Union offers reasonable rates to the few who qualify for membership. 

What we like

  • Physical branches: If you prefer face-to-face interaction with a loan officer, Municipal Credit Union could be an ideal lender for you. There are 14 branches throughout New York you can visit to apply for a loan.
  • Few fees: MCU does not charge origination fees or prepayment penalties.
  • Low APRs: The APR you’ll receive on a personal loan is quite low compared to what many other industry lenders charge, though not the absolute lowest available.

What we don't like

  • Membership requirements: Personal loans are only accessible to MCU members. But if you’re not eligible to join, you must seek funding elsewhere.
  • Eligibility criteria not disclosed: There’s no mention of minimum credit score or income requirements on the website. Plus, it’s unknown if the lender allows co-signers or co-borrowers on personal loans.
  • Slower approval process and funding times: Municipal Credit Union might not be right for you if you want to get money fast. Many online-only lenders offer same-day application approval, but this lender does not specify on its website how long the process takes.

How to contact Municipal Credit Union

If you have questions about MCU’s loans, you can call 844-628-6969. Representatives are available Monday through Friday from 7 a.m. to 7 p.m. and Saturday from 9 a.m. to 2 p.m. ET.

You can also schedule an online appointment with a representative at its virtual lending location.

How to apply for a loan with Municipal Credit Union

To borrow from MCU, you must have an account in good standing with MCU — meaning at least $5 in your account without any unpaid charge-offs or outstanding bankruptcies.

The application process is straightforward and can be done at a branch, over the phone, through the MCU online banking platform or the credit union’s mobile app. Before applying, you'll need to have the following information or documentation on hand: 

  • Proof of identity. This can be any of the following: birth certificate, certificate of citizenship, military ID, passport, drivers license, Social Security card or your state-issued ID.
  • Employer information. You may also be asked to provide income information, so you'll need to have pay stubs, tax returns, W-2s and 1099s, bank statements or employer contact information on hand. 
  • Other personal or financial documentation. MCU states that you may also be required to submit additional documentation, but if that's the case you'll be notified during the application process. 

The application will ask for the loan amount, terms you’re seeking and the general purpose of the loan. If you filled out your application online, you can electronically sign and finalize the loan agreement. If you choose to set up a direct deposit at MCU, you can choose autopay, which automatically deducts loan payments.

Features and perks

In addition to solid rates, MCU allows you to set up automatic payments for added peace of mind. If you authorize direct deposit from your MCU savings or checking account, you’ll qualify for a 0.25 percent rate discount.

Fees and penalties

MCU does not charge origination fees or prepayment penalties, but there is a $25 late fee if a payment is more than 30 days late. Additionally, your APR will increase by 0.25 percent if you cancel direct deposit to your MCU account.

Municipal Credit Union FAQs

How Bankrate rates Municipal Credit Union

Score Explanation
Overall 4.2
Availability 3.4 MCU offers a low minimum loan amount, but many eligibility and funding timeline details are missing.
Affordability 4.7 The minimum and maximum APRs are low and the only fee is a late fee.
Customer experience 4.7 You can get online, in-person or phone-based customer support six days a week.
Transparency 4.0 Municipal Credit has all fees and rates listed, but none of its credit requirements.

 Methodology

To select the top personal loan lenders, Bankrate considers 20 factors. These factors include credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Bankrate reviewed over 30 lenders and gave each a Bankrate rating, which consists of four categories:

  • Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
  • Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
  • Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
  • Transparency: This category is measured by how accessible credit requirements, rates and fees are on the lender's page. We also took into account whether prequalification was available, as all these factors are key for consumers to make an informed decision.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.