DCU Personal Loans Review: Enjoy a Skip-Payment Option

You might think that the Massachusetts-based Digital Federal Credit Union (DCU) is just one option for customers in that region. But DCU serves more than 700,000 customers in all 50 states.

DCU offers various products, including personal loans to credit unions. Find out in this DCU Personal Loans Review what One Stop Shop has to offer and if it is the right lender for you.

DCU Personal Loans Review

DCU has many offers, including bank accounts, credit cards, insurance plans, and loans for everything from your education to your home.

For its unsecured personal loan, DCU offers repayment terms of up to 60 months and competitive fixed interest rates (more details below). The credit union also offers a 0.50% rate reduction for making your monthly payment from a DCU checking account.

Other product benefits include:

  • No administration, set-up or prepayment fees
  • Possibility to apply with a co-borrower

On the personal loan front, DCU has three options to consider beyond its traditional personal loan, which can be borrowed for any purpose. Options include:

  • Credit creator: To improve your credit and build an emergency fund, you could borrow between $500 and $3,000 and pay it back over 12 or 24 months. The loan amount would be deposited in a savings account and you would not be able to access it until you repaid it.
  • Debt Consolidation: Consolidate your credit card or other debt into one new loan and pay it off over up to five years.
  • Secure savings: Borrow from your existing DCU bank account to get the lowest possible interest rate on a personal loan. You can choose a repayment term of up to 10 years. Unlike the unsecured personal loan options above, you put your savings at risk of being seized if your loan repayments deteriorate.

Like the Secured Savings option, DCU offers other secured loan products where you put up collateral to secure lower interest rates.

For example, you can borrow against the equity in your car (via an auto loan) or your home (via a mortgage or home equity loan). The downside to these DCU products – and secured personal loans in general – is that you could lose your property if you default on payment.

Important Note: You must become a member of the credit union to receive a loan. But if you don’t live near an agency, you can apply for a personal loan online or by phone 24 hours a day. You might even receive approval while you’re online.

DCU also offers a host of loan calculators to help you figure out how much you should borrow and how long it will take to repay.

Apply for DCU Personal Loans

You can apply for a personal loan before or after joining DCU, but the credit union won’t fund the loan until you’re a member, according to a customer service rep I spoke to online.

The online loan application includes three easy steps:

  • Apply for your loan: Enter the purpose of your loan, the loan amount and the repayment term.
  • Provide personal information: Enter your gross monthly income, occupation, and other financial information.
  • Review and submit: You agree to allow DCU to retrieve your credit report to determine your eligibility for a loan.

As with other lenders, DCU determines your loan amount, interest rate, and repayment term options based on your credit score. The better your credit, the more options you have.

In addition to being creditworthy, you must also have a social security number and prove that your income qualifies for a personal loan, according to the customer service representative.

How to Join and Use the DCU Online Platform

To join DCU, you can open a new DCU account online. If you are a new user, you will need to open a main savings account. You can also choose to open other types of bank accounts at this point.

You will then provide personal information and prove your eligibility. Finally, you will fund your account with a minimum deposit of $5 and pay your membership fees with a debit or credit card. Membership fees vary depending on your association with DCU.

Image credit: DCU

Within seven days of joining DCU, you will receive your Personal Identification Number (PIN) in the mail. Within two weeks, you will receive your ATM or debit card, depending on your initial account selection. The PIN code will come in handy when you log in to your online account.

You will also find this useful YouTube video below for connecting to DCU via your smartphone or tablet. DCU has iPhone and Android apps.

DCU Personal Loans Review: Interest Rates and Fees

Effective May 4, 2018, DCU advertises an APR of 9.00% on its standard personal loan product. For the latest available rates, contact DCU (more information below). You can borrow between $200 and $25,000, depending on the customer service representative.

Your actual rate will depend on your credit history and other factors, such as whether you sign up for autopay from a DCU checking account. Additionally, DCU does not charge origination fees and other loan fees, so the interest rate you will be quoted also acts as your APR.

The credit union does not provide its range of rates like other lenders. SoFi, for example, announced its fixed APR range between 5.74% and 20.28%.

DCU’s other three personal loan products also had fixed interest rates as of May 4, 2018:

  • Credit creator: From 5.00%.
  • Debt Consolidation: From 9.00%.
  • Secure savings: From 3.50%.

If you’re worried about late payment fees, consider that DCU gives you the option to skip a monthly payment for a $25 processing fee.

You might find lower interest rates from the best personal loan companies. When shopping, be sure to compare offers based on APR. Other lenders charge fees that increase their effective interest rates, or APR.

If you prefer to borrow from a credit union for more personalized service, DCU is an option. It would also allow you to do all your banking and borrowing in one place.

DCU Personal Loan Eligibility Requirements

DCU does not provide the minimum credit score or income you need to qualify for its personal loans. The credit union clearly states that you must be a member to borrow.

You may be eligible to join DCU in one of four ways:

DCU Personal Loans Customer Service

Here are some customer reviews we found while researching DCU personal loans.

The Reviews tab on DCU’s personal loan page shows over 100 customers recommending the product, giving it a rating of around 4 out of 5. Customers tend to give mixed reviews of DCU’s service on other websites such as WalletHub.

The credit union provides live email, phone and online support to customers. You can even send or fax documents to the DCU hub. Customer service operates from 8 a.m. to 9 p.m. ET on weekdays and from 9 a.m. to 3 p.m. ET on Saturdays.

You can also learn more about the lender through their Facebook page and YouTube channel.

Note: Student Loan Hero has independently collected the above information regarding personal loans from the Digital Federal Credit Union. Digital Federal Credit Union has neither provided nor reviewed the information shared in this article.

Interested in a personal loan?

LendingTree lets you compare rates from multiple lenders by filling out a simple form. How is the student loan hero paid?

How is the student loan hero paid?

Student Loan Hero is compensated by the businesses on this site and this compensation may impact how and where offers appear on this site (such as ordering). Student Loan Hero does not include all lenders, savings products or loan options available in the market.

Advertiser Disclosure

Hero Loan Hero Advertiser Disclosure

Student Loan Hero is an ad-supported comparison service. The site features products from our partners as well as institutions that are not advertising partners. Although we strive to include the best deals available to the general public, we do not guarantee that this information represents all products available.

How is the student loan hero paid?

How is the student loan hero paid?

Student Loan Hero is compensated by the businesses on this site and this compensation may impact how and where offers appear on this site (such as ordering). Student Loan Hero does not include all lenders, savings products or loan options available in the market.

Advertiser Disclosure

Hero Loan Hero Advertiser Disclosure

Student Loan Hero is an ad-supported comparison service. The site features products from our partners as well as institutions that are not advertising partners. Although we strive to include the best deals available to the general public, we do not guarantee that this information represents all products available.

PRICES (APRIL) Amount of the loan
5.74% – 8:28 p.m.%1 $5,000 for $100,000
4.37% – 35.99% $1,000 for $50,000
5.94% – 35.97%* $1,000 for $50,000
99.00% – 199.00%2 $500 for $4,000
5.99% – 24.99%3 $5,000 for $40,000
9.99% – 35.99%4 $2,000 for $36,500

NMLS #1136: terms and conditions apply

1 Includes AutoPay rebate. .
2 Includes AutoPay rebate. .
3 Includes AutoPay rebate. .
4 .
* .

About Judith J. George

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