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Municipal Credit Union personal loans: 2023 Review

Updated on Jun. 22, 2023
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At a glance

4.4
Rating: 4.4 stars out of 5
Bankrate Score
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Availability
Rating: 4 stars out of 5
4.0
Affordability
Rating: 4.7 stars out of 5
4.7
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 16 branches, over 586,000 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 to 72 months
This lender is best for borrowers looking to consolidate debt.

Municipal Credit Union is 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 low APRs starting at 8.20 percent for personal loans and 5.00 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

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    Physical branches.

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    Few fees.

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    Low APRs.

CONS

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    Membership requirements.

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    Eligibility criteria not disclosed.

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    Slower approval process and funding times.

Do you qualify?

You must be an MCU member to qualify for a loan. Membership is restricted to certain employees within the state of New York or employees of companies that offer health-related insurance or hospital supplies in the state of New York. You may also be eligible if you have a family member who qualifies for membership. Unfortunately, credit score or income requirements are not disclosed on the website.
 
 

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

Borrowers can use the funds however they see fit as there are no usage restrictions.

How this lender compares

logo
Rating: 4.4 stars out of 5
4.4
Bankrate Score
APR from
8.20% – 15.70% (with autopay)
Loan Amount
$1,000 – $50,000
Term Length
12 to 72 months
Min Credit Score
Not disclosed
logo
Rating: 4.7 stars out of 5
4.7
Bankrate Score
APR from
7.99% to 29.99%
Loan Amount
$5,000 to $50,000
Term Length
24 to 60 months
Min Credit Score
620
logo
Rating: 4.8 stars out of 5
4.8
Bankrate Score
APR from
7.74%-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 does charge an origination fee of up to 6.99 percent. 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. In terms of features, PenFed offers financial assistance for borrowers who face temporary or permanent hardship.

But you will need to have a good to excellent credit score to take out a loan with PenFed — it's minimum credit score is 700. 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

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.

Municipal Credit Union FAQs

How Bankrate rates Municipal Credit Union

Score Explanation
Overall 4.4
Availability 4.0 Low minimum loan amount but many details are not available
Affordability 4.7 The minimum and maximum APRs are low and the only fee is a late fee
Customer experience 4.7 Online and in-person options as well as 24/7 customer support but low rated mobile apps
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.