Municipal Credit Union personal loans: 2023 Review

Do you qualify?

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

Municipal Credit Union: in the details

What we like and what we don’t like

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 to what many other lenders in the industry are charging.

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 reside in the greater New York City area, you can Call MCU at 212-693-4900 to speak with someone from the Member Solutions team. Those who live outside of the New York City area can call 800-323-6713. 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.

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.

 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.