Credit union
A member-owned, not-for-profit financial cooperative. Often offers lower personal-loan APRs than banks for the same credit profile.
Full definition
A credit union is a member-owned, not-for-profit financial cooperative regulated under federal or state credit-union charters. Profits return to members as lower loan APRs, higher deposit rates, and reduced fees. For personal loans, credit unions are often the cheapest mainstream option for borrowers who qualify for membership and meet the credit union's underwriting standards.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Personal loanAn unsecured installment loan that can be used for almost any personal purpose. The most flexible mainstream U.S. consumer-loan product.
- Unsecured loanA loan that doesn't require collateral. The lender relies on your credit and income to underwrite. Most personal loans are unsecured.
- Secured loanA loan backed by collateral the lender can seize on default. Auto loans, mortgages, and HELOCs are secured. APRs are lower than for unsecured loans.
- HELOC (Home Equity Line of Credit)A revolving line of credit secured by your home equity. APRs are typically lower than personal loans, but the home is collateral.
- Online lenderA lender that originates and services loans entirely online. Decisions in minutes; funding as fast as the next business day.
- Marketplace lenderA platform that matches borrowers with multiple lenders from a single application, so you can compare offers without applying separately.
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