Our Take
If you’re looking for a lender offering a wide range of affordable personal loan options with excellent customer support programs, it’s hard to beat Patelco Credit Union. Even if you aren’t approved for a good loan now, Patelco CU offers plenty of ways to qualify through other methods, and it has a unique option for reducing your interest rate as you demonstrate your ability to repay your loan.
Top Rated For
- Best Credit Union 10 Best Personal Loans of July 2024
- Best Credit Union Best Emergency Loans for Bad Credit for July 2024
- Best Credit Union Best Secured Personal Loans for 2024
- Best Credit Union Best Loans for Excellent Credit for 2024
- Best Credit Union Best Joint Personal Loans for 2024
- Best for Repayment Terms Best Personal Loans for Fair Credit for 2024
- Best With a Co-Signer Best Personal Loans With a Co-Signer or Co-Borrower for 2024
- Best Credit Union Best Boat Loans for July 2024
- Best With a Co-Signer Best Loans for Bad Credit for July 2024
- Also Great for Small Loans Best Small Personal Loans for 2024
- Pros and Cons
- Key Takeaways
- Company Overview
- specifications
Quick loan funding
Two discount options
Broad membership criteria
Abundant service and support
Wide range of affordable loan options
Mediocre bank accounts
Limited customer review data
- Patelco Credit Union has membership requirements that include working at one of more than 1,100 sponsor companies or living in one of several counties.
- You can also join the Financial Fitness Association to become a member of Patelco and the credit union will reimburse you.
- Patelco offers secured and unsecured personal loans ranging from $300 to $100,000, with term lengths from six to 84 months.
- With Patelco Credit Union membership, you get valuable perks like access to free one-on-one financial counseling and support.
Patelco Credit Union is based in Merced, California, but it’s available for people to join nationwide. It was formed by employees of the Pacific Telephone & Telegraph Company in 1936, hence the condensed name “Patelco.” Today it offers a wide range of banking products and membership benefits, including personal loans, to its more than 450,000 members.
Despite its widespread availability and large member base, there’s actually very little information posted online from customers. Even so, we think it’s a good credit union to consider for personal loans given its robust support options and affordable personal loan program.
Pros Explained
- Quick loan funding: If you’re approved, Patelco can disburse the funds to a Patelco bank account as soon as the same day.
- Two discount options: Patelco offers two discount options: a 0.10% rate reduction if you meet certain banking requirements for Commitment Household Membership, and its LevelUp program that offers up to three yearly 0.50% rate reductions for paying on time.
- Broad membership criteria: Residents of any state can join Patelco online. If you don’t meet employer or county of residence membership requirements, you can join by becoming a member of the Financial Fitness Association; Patelco will even sponsor your membership fee.
- Abundant service and support: You can contact Patelco through numerous options, including a “virtual branch” where you can meet with a banker over the internet. The credit union also offers free one-on-one financial counseling options.
- Wide range of affordable loan options: Patelco can accommodate just about any personal loan need you might have, except for longer-term personal loans of over seven years. Its maximum loan amount is $100,000, which is high compared to many other lenders.
Cons Explained
- Mediocre bank accounts: Patelco offers low interest rates on its checking and savings accounts. You can keep a high-yield savings account open elsewhere to earn better yields on your deposit.
- Limited customer review data: Patelco Credit Union reviews are scarce online at sites like the Better Business Bureau, despite the fact that it’s a large and well-established banking institution. We’d expect more customers to be talking about their experience.
Types of Personal Loans Offered by Patelco Credit Union
Patelco offers two main types of personal loans: secured loans and unsecured loans. It advertises a debt consolidation loan, which is essentially its unsecured personal loan.
Patelco’s unsecured personal loans come with slightly higher interest rates and may be available in longer term lengths than its secured personal loans. If you’re looking for cheaper rates and can tuck some money away in a Patelco savings account or certificate while you’re repaying the loan, you may be able to borrow up to the value of your deposit amount.
Patelco offers a credit-builder loan to help you build credit, but it’s not really a way to borrow money. You make payments that Patelco saves up for you and then makes available when your “loan” is paid off. It’s a useful tool, but not a personal loan substitute.
Either option can be used for a wide variety of personal loan purposes, including:
- Vacations
- Weddings
- Debt consolidation
- Emergency expenses
- Medical or veterinary care
- Major home repairs or renovation
According to Investopedia’s 2023 Personal Loan Borrower survey, debt consolidation is the most common reason cited for getting a personal loan. Paying for home improvements and large purchases were the next two most common reasons.
Time to Receive Personal Loan Funds
You can get your funds quickly if your personal loan application is approved. Patelco offers same-day funding right to your Patelco bank account in some cases.
Patelco doesn’t specify how long it takes for the application to be approved, however. It also doesn’t say how long it’ll take for your loan funds to be disbursed via other routes, like a deposit to an account at another bank.
Borrower Requirements
You’ll need a credit score of 640 or higher in order to qualify for a personal loan from Patelco Credit Union. You don’t need to be a member of the credit union to check your rates, but if you want to officially apply, you will need to be eligible for membership.
Other than that, Patelco doesn’t specify the personal loan requirements you’ll need to meet, although lenders commonly investigate other factors like your income and other debt payments.
Patelco Credit Union Personal Loan Features
With the Patelco personal loan, you’ll also get access to a few other features:
- Mobile app: Get your banking done digitally, and schedule payments to your personal loan as well.
- Debt protection plans: For a price, Patelco offers optional debt protection insurance, which forgives your loan balance in case a catastrophe happens, like losing your job.
- Financial counselors: Patelco offers free one-on-one financial counseling and support for issues like creating a budget, buying a house, or creating a savings plan.
Co-Signers and Co-Applicants
Patelco Credit Union offers more flexibility to add someone else onto your loan compared to other lenders. You can apply with a joint applicant who will be equally responsible with you for the loan, or you can apply with a co-signer who only agrees to repay the loan in the event you default. Most personal loan lenders only offer one option or the other, if at all.
Adding someone else onto your loan can help you qualify if you’re denied a loan on your own. It can also help you secure lower rates.
Can You Refinance a Personal Loan With Patelco Credit Union?
Patelco allows you to refinance personal loans, but it doesn’t offer up many more details. It’s unclear, for example, whether you can refinance your same Patelco loan for a new one with Patelco, or if you can refinance a personal loan from another lender.
Customer Service
Many personal loan lenders are available nationwide like Patelco, but few of them have such a robust customer service department. Its “virtual branch” is especially convenient, allowing you to access nearly the same level of support as someone local to the Merced, California, area without the hassle of traveling across the country.
Medium | Contact | When |
---|---|---|
PO Box 2227 Merced,CA 95344 | 24/7 | |
Telephone | 800-358-8228, ext. 1212 | Weekdays, 8:30 a.m. to 5 p.m. PT |
Zoom call | Make an appointment on the website | Weekdays, 9 a.m. to 5 p.m. PT |
Live chat | Patelco: Contact Us | Weekdays, 9 a.m. to 5 p.m. PT |
X (formerly Twitter) | @PatelcoPays | 24/7 |
Customer Satisfaction
Patelco Credit Union lacks online customer reviews on sites such as the Better Business Bureau, where it has no reviews or ratings.
Patelco Credit Union Membership Requirements
Like any credit union, Patelco is only available to people who meet certain requirements for membership. If you work for one of Patelco’s partner employers, for example, or live in certain parts of California, you may be eligible without having to jump through any extra hoops.
Patelco also allows just about anyone in the country to join by first becoming a member of the Financial Fitness Association. Many credit unions use this strategy, but Patelco offers to pay for both your $8 membership fee, and the $1 you’re required to keep in a savings account to establish membership.
The process may still entail more work than for an online lender that does not require membership, per se, but at least you won’t need to spend any extra cash of your own.
How to Qualify For and Apply For a Patelco Credit Union Personal Loan
Patelco makes it a quick and simple process to check your rates and apply for a loan online. Here’s how the process works:
- Get pre-qualified: It’ll typically take between five and 10 minutes to complete an online pre-qualification form on Patelco’s website, according to the credit union. Patelco will do a soft credit check when you apply so that it doesn’t affect your credit score.
- Shop for other rate quotes: Patelco may or may not be the best option for you, but unless you check your rates with other lenders, you won’t know. See what at least two other lenders would charge you before making a decision.
- Apply for Patelco’s personal loan: If you go ahead with your application, Patelco will do a hard credit check. It doesn’t specify what documents you’ll need, but with most personal loan applications you need to show proof of identity, income, and bank statements.
- Join the credit union: If you’re approved for the loan, you’ll need to join the credit union. Patelco requires that you link up either a credit card or another outside bank account to your new Patelco deposit accounts to get started.
- Receive funds: Patelco will deposit your funds to your new credit union account as soon as the same day you apply and are approved.
Other Banking Services and Loans Offered by Patelco Credit Union
Patelco Credit Union is a full-service financial institution. In addition to personal loans, it also offers a standard suite of products:
- RV loans
- Car loans
- Insurance
- Mortgages
- Credit cards
- Investments
- Savings accounts
- Checking accounts
- Money market accounts
- Home equity loans and lines of credit (HELOCs)
- Financial education and one-on-one counseling
Compare Patelco Credit Union With Other Personal Loan Lenders
Patelco Credit Union | SoFi | PenFed | |
---|---|---|---|
APR Range | 9.30%–17.90% | 8.99%–29.49% | 7.99%–17.99% |
Loan Amounts | $300–$100,000 | $5,000–$100,000 | $600–$50,000 |
Loan Terms | 6–84 months | 24–84 months | 12–60 months |
Recommended Minimum Credit Score | 640 | Not disclosed | 700 |
Origination Fee | None | None | None |
Time to Receive Funds | Same day | Same day | 1 day |
The Bottom Line
If you prefer working with credit unions but you don’t have any good credit union options in your area, Patelco may be a great choice for taking out a personal loan. Its products and services are available online anywhere in the country, and you can qualify for membership simply by joining the Financial Fitness Association, for which Patelco will reimburse you.
Importantly, this credit union offers flexible loan options to accommodate just about anyone. In addition, it’s easy to get ahold of customer support reps and there are abundant ways to save even if you don’t qualify for the lowest rate right from the beginning.
Does Patelco Credit Union Operate Nationwide?
Yes. Patelco Credit Union is available in all states and Washington, D.C., although you will need an internet connection to take advantage of its digital banking options. You will also have to meet membership eligibility requirements.
Is Patelco Credit Union FDIC Insured?
Deposits with Patelco Credit Union are federally insured by the National Credit Union Administration (NCUA) for up to $250,000, which is the same amount as the FDIC provides banks.
How Do You Become a Member of Patelco Credit Union?
You can join Patelco if you live in certain areas of California, work for one of Patelco’s partner employers, went to school at certain California universities, or live with or are related to another Patelco member. Finally, you can join the credit union by becoming a member of the Financial Fitness Association, and Patelco will even sponsor your membership fee.
Who Owns Patelco?
Patelco Credit Union, like all credit unions, is a co-op owned by its members. If you join Patelco Credit Union, you will become a partial owner too.
Does Patelco Use Zelle?
Yes, Patelco Credit Union offers Zelle for you to send and receive money quickly from your bank account. It doesn’t work with loans, however; just deposit accounts.
Methodology
To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:
- Loan costs (advertised APR, fees, and six other factors): 29.25%
- Loan terms (loan amount, repayment term, and three other factors): 22.25%
- Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
- Additional features (online application, pre-qualification, and eight other factors): 20%
- Learn more about how we evaluated personal loans in our complete methodology.