If you’re interested in a personal loan, it’s hard to go wrong with a credit union. Many offer similar rates as banks without forcing you to meet strict eligibility criteria. Municipal Credit Union and PenFed have competitive rates, but neither is clear on what it takes to qualify.

Still, they are solid options when you’re looking to borrow. As long as you qualify for membership, you may be able to borrow up to $50,000 with either lender.

Municipal Credit Union vs. PenFed at a glance

Both Municipal Credit Union and PenFed have good terms and competitive rates.

Municipal Credit Union personal loans

Municipal Credit Union is based in New York. Its membership is open to those who live in New York City, are New York state or federal employees or are related to an existing member.

The personal loans on offer by Municipal Credit Union are standard for the current market. You may be able to borrow up to $50,000, and only need to worry about late fees. However, the lack of information about its eligibility criteria and how long it takes to fund are big negatives. Most lenders, including other credit unions, are upfront about its requirements and the time it takes to process your application.

Pros

• Autopay discount.

• Long loan terms.

• Competitive APR.

Cons

• No disclosed funding timeline.

• Unclear eligibility criteria.

• Membership required.

PenFed personal loans

PenFed has over 2.5 million members nationwide and serves the entire U.S. as well as Guam, Puerto Rico and Okinawa. Like any credit union, you will need to be a member. Fortunately, membership is open to nearly anyone in the U.S.

Its loans are also on par for the market. While you may be responsible for a nonsufficient funds (NSF) fee in addition to a late fee, there are no origination fees or other costs. And unlike many other lenders, PenFed is open to joint applications. It isn’t specific about what you will need to qualify, but you can expect to need a solid income and good to excellent credit.

Pros

• Joint applications.

• Quick funding timeline.

• Competitive APR.

Cons

• Unclear eligibility criteria.

• Late and NSF fees.

• Membership required.

How to choose between Municipal Credit Union and PenFed

Municipal Credit Union and PenFed have similar products — their rates, loan amounts and terms are very similar. But PenFed will be a better choice for non-NYC residents. Municipal Credit Union does have a slightly more competitive range of APRs if you live within its serviced region. If you don’t, PenFed membership is open to anyone across the U.S.