RateCity.com.au
powering smart financial decisions
RateCity.com.au

Find and compare credit union personal loans

Loan amount

$

Loan term

Credit score

Don't know your score? Find it out here.

Show Online Partners Only?

We provide links to our Online Partners. If you click through to an Online Partner, you can get more product information, apply for or purchase the product and RateCity may earn a fee for referring you. This is one of the ways RateCity makes money and how we can offer our comparison service to you for free. See how we make money for more.

Sort by

Default

All filters

Loan amount
$
Loan term
Credit score

Don't know your score? Find it out here.

Loan type
Security type
Features
Specials
Fees
Providers

Type of lender

Online Partner

Show Online Partners Only?

We provide links to our Online Partners. If you click through to an Online Partner, you can get more product information, apply for or purchase the product and RateCity may earn a fee for referring you. This is one of the ways RateCity makes money and how we can offer our comparison service to you for free. See how we make money for more.

Oops, no result found.

Include all products

Embed

Personal loan lenders we compare at RateCity

Learn more about personal loans

What is a credit union?

Credit unions are member owned financial cooperatives. Credit unions are “not-for-profit” organisations, which means that they work for their members rather than to turn over a large profit (they are still profit-driven, however). This enables them to provide competitive rates to their customers, as the revenue made is distributed amongst the credit union owners, aka its members and customers.

There are roughly 75 credit unions Australia-wide. 

How do I apply for a personal loan from a credit union?

 In order to get a personal loan from a credit union, you must first become a member of the credit union. Typically, joining a credit union requires you pay a one-time membership fee, as well as making a small deposit.

Credit unions come in all shapes and sizes, so depending on the institution, the application process and the loan eligibility criteria will vary. Some credit unions will accept online applications, but others may require you to come into a branch to sign any necessary paperwork in person.

Credit unions offer secured and unsecured personal loans at fixed rates. This means that the interest rate charged will remain the same for the duration of the loan period. As always, it’s advised that you talk to a financial planner to work out which suits your needs best.

Loan agreement and pen on desk

Is a credit union personal loan better than a personal loan from a bank? 

Credit unions, like banks, assign their rates based on your income, credit history, credit score and existing debts. Banks usually reserve their lowest rates for people with excellent credit scores, which makes them harder for most people to acquire. Credit unions tend to have lower rates and fewer fees than banks, even for people with less than perfect credit histories. Having a good credit score will still bag you a lower rate with a credit union, but they tend to be more forgiving of bad credit borrowers, as they take into consideration your standing in the union and your whole financial picture.

Like banks, credit unions are registered under the Banking Act as Authorised Deposit-Taking Institutions (ADIs), which means that they are as safe to borrow from as any other bank.

Customer satisfaction is rated higher amongst credit unions, scoring 90 per cent satisfaction rate in 2015, according to Roy Morgan research. Banks, specifically the big four, Commonwealth Bank, NAB, Westpac and ANZ, scored just 81.5 per cent. (It’s worth bearing in mind that not all institutions were included in this survey).

On the downside, you may find that there are fewer loan options with a credit union than with a bank. Banks have the monopoly of the market and are therefore able to offer a wider range of financial products.

Also, the requirement of some credit unions to come into branch can be an inconvenience for many people in an era where almost everything is available electronically.

Pros
  • Fewer fees or no fees
  • Lower interest rates
  • Better customer service
  • Flexibility for people with bad credit
Cons
  • Fewer products
  • Less branches in fewer locations
  • Fewer online services

Frequently asked questions

Where can I get a personal loan?

The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:

There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

How long do personal loans take?

Depending on the lender, some personal loan applications can be approved in as little as one hour, or you may need to wait until the next business day. If approved, you may receive your money on the same day, the next business day, or within the week.

How are personal loans regulated?

Personal lenders in Australia are regulated by ASIC (the Australian Securities & Investments Commission) and must follow responsible lending rules. That means they can’t lend money without making “reasonable inquiries” about a borrower’s financial situation and ensuring the loan is “not unsuitable” for them.

What are the pros and cons of personal loans?

The advantages of personal loans are that they’re easier to obtain than mortgages and usually have lower interest rates than credit cards.

One disadvantage with personal loans is that you have to go through a formal application process, unlike when you borrow money on your credit card. Another disadvantage is that you’ll be charged a higher interest rate than if you borrowed the money as part of a mortgage.

Can I get a personal loan if I receive Centrelink payments?

It is hard, but not impossible, to qualify for a personal loan if you receive Centrelink payments.

Some lenders won’t lend money to people who are on welfare. However, other lenders will simply consider Centrelink payments as another factor to weigh up when they assess a person’s capacity to repay a loan. You should check with any prospective lender about their criteria before making a personal loan application.

Does a business loan affect your credit score?

If you apply for a business loan, the lender will likely request your permission for a hard credit check in addition to checking your business’s credit profile. Typically, such a credit check will be a “hard enquiry”, meaning that the credit reporting bureau will add it to your credit history. 

While a single hard credit check may not affect your credit score, frequent credit checks can. Try to avoid making multiple loan applications at once, and consider boosting your credit score before applying for any business loans if it’s not in an ideal range. 

What is a credit rating/score?

Your credit rating or credit score is a number that summarises how credit-worthy you are based on your credit history.

The lower your score, the more likely you are to be denied a loan or forced to pay a higher interest rate.

Will comprehensive credit reporting change my credit score?

Comprehensive credit reporting may change your credit score, either positively or negatively, depending on an individual's situation.

Under comprehensive credit reporting, credit providers will share more information, both positive and negative, about how you and other Australians manage credit products. That means credit reporting bureaus will be able to make a more thorough assessment of everyone’s credit behaviour. That will lead to higher scores for some consumers and lower scores for others.

How do I know if I've got a bad credit history?

You can find out what your credit history looks like by accessing what's known as your credit rating or credit score. You're also able to check your credit report for free once per year.

What causes bad credit ratings/scores?

Failing to repay loans and bills will damage your credit score. So will falling behind on your repayments. Your credit score will also suffer if you apply for credit too often or have credit applications rejected.

Are there emergency loans with no credit checks?

While many personal loans require a credit check as part of the application process, some personal loans and payday loans have no credit checks, which may appeal to some borrowers with a bad credit score.

Keep in mind that even if a loan is available with no credit check, the lender will likely want to confirm that you can afford the repayments on your current income.

Can students with no credit history get loans?

It is possible for students with no available history of borrowing or managing money to get a personal loan, though it may be more difficult as well as expensive than for borrowers with a good credit history.

Having no credit history means having no credit score. While many lenders may consider having no credit score to be better than having a bad credit score, they may still consider it riskier to lend to an unknown borrower and may charge higher interest rates or fees than to borrowers with good credit scores.

How long does it take to get a bad credit personal loan?

In the best-case scenario, an application for a bad credit personal loan can be made within minutes and then be approved within 24 hours. However, if a lender needs more information or needs more time to verify the provided documents, the application process may take longer.

What is comprehensive credit reporting?

Comprehensive credit reporting is a system which includes both positive and negative information on a person’s credit file. Before comprehensive credit reporting was introduced, only negative information was included.

What causes bad credit history?

Bad credit history is caused by filing for bankruptcy, defaulting on your debts, falling behind on your repayments and having loan applications rejected. Lenders are wary of borrowers who demonstrate this sort of behaviour because it suggests they might struggle to repay future loans.

Borrowers with bad credit may find it more difficult to be approved for a loan, or they may get higher interest rates when they do get approved.

How much can I borrow with a personal loan?

It’s unusual for a lender to provide a personal loan of above $100,000, although there is no formal limit. As with all lending products, each lender sets its own policies, while each borrower is assessed on a case-by-case basis.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

What are the pros and cons of debt consolidation?

In some instances, debt consolidation can help borrowers reduce their repayments or simplify them. For example, someone might take out a $7,000 personal loan at an interest rate of 8 per cent so they can repay an existing $4,000 personal loan at 10 per cent and a $3,000 credit card loan at 20 per cent.

However, debt consolidation can backfire if the borrower spends the extra money instead of using it to repay the new loan.

How can I improve my credit rating/score?

Your credit score will improve if you demonstrate that you’ve become more credit-worthy. You can do that by minimising loan applications, clearing up defaults and paying bills on time.

Another tip is to get the one free credit report you’re entitled to each year – that way, you’ll be able to identify and fix any errors.

If you want to fix an error, the first thing you should do is speak with the credit reporting body, which may take care of the problem or contact credit providers on your behalf.

The next step would be to contact your credit provider. If that doesn’t work, you can refer the matter to the credit provider’s independent dispute resolution scheme, which would be the Australian Financial Complaints Authority (AFCA).

AFCA provides consumers and small businesses with fair, free and independent dispute resolution for financial complaints.

If that doesn’t work, your final options are to contact the Privacy Commissioner and then the Office of the Information Commissioner.