Should I get a personal loan from an online lender or a credit union?

Credit union advantages: Rates: federal credit union member loan rates are capped at 18% APR by law. Many credit union personal loan rates run 7%-15% for qualified members. No origination fees at many credit unions. Member relationship: credit unions may consider your full financial history as a member, not just your credit score. This can help borrowers with thin files or a one-time past issue. Physical branch: useful for complex loan questions, co-signers, or paperwork. Credit union challenges: membership requirement: you must qualify for membership (employer, geographic area, association, or family connection). Not everyone can join any given credit union. Slower processing: credit unions may take 3-7 business days to approve and fund, vs 1-3 days for online lenders. Less automation: the online account and app experience may be less polished.

Online lender advantages: Speed: same-day or next-day funding available at some lenders. Convenience: fully online from application to funding. No membership required. Competition: shopping multiple online lenders via prequalification takes 20 minutes and gives you 4-8 competing rate offers simultaneously.

Decision framework: If you are already a credit union member with a good relationship: start there. If you need money in under 48 hours: online lender. If you have a credit score above 720: compare both; online lenders (LightStream, SoFi) are competitive at this tier. If you have fair credit (600-660): credit union relationship lending may beat online lenders who price heavily on credit score.