Navy Federal Personal Loans Review: Everything you need to know

Navy Federal Credit Union has millions of members all around the world. Members of the US armed forces, military veterans, Department of Defense personnel, and their immediate family members make up the organization.

Personal loans are among the banking services offered by the credit union. It offers secured and unsecured loans, with payback terms dictated by the loan’s purpose and the borrower’s credit history.

If you apply for a loan and are approved, you can get the money in as soon as one day, making Navy Federal Personal Loan a smart choice if you need money quickly.

What Is Navy Federal Credit Union?

Navy Federal Credit Union, based in Vienna, Virginia, has been supporting the military community since 1933.

The lender has expanded significantly, presently serving over 8 million customers. They provide everything from checking and savings accounts to loans and credit cards.

It’s no surprise that NFCU is the world’s largest credit union, with over 343 locations worldwide. They believe in sustainability and demonstrate it through energy-efficient structures and the use of hundreds of tons of recyclable materials.

How From Navy Federal Personal Loan Work

Navy Federal Credit Union offers unsecured personal loans, which are loans without the need for collateral such as a house or car.

Navy Federal offers personal loans for a variety of reasons, including auto repairs, vacations, and other large purchases.

To apply for and get a personal loan from Navy Federal, you must be a member, unlike other credit unions. You can only apply if you’re an active military member or veteran, as well as a Department of Defense employee or retiree. Any of the aforementioned groups’ family members are also eligible.

Navy Federal provides personal loans in all 50 states. You can apply with a co-borrower at Navy Federal, which may help you receive a better rate if your co-borrower has a good credit score. You can complete your application online and receive your rate in a matter of minutes. You’ll have to apply over the phone or in person if you’re seeking for a debt consolidation or home improvement loan.

In most circumstances, you’ll obtain your money the same day you apply with Navy Federal.

There are a variety of ways to acquire answers to your customer service questions. You can contact customer service 24 hours a day, send a secure message from your online banking account, schedule an in-person appointment, communicate with a chatbot, send physical mail, or use social media to communicate with the organization.

Navy Federal offers a Google Play app with a rating of 4 out of 5 stars and an Apple app with a rating of 4.8 out of 5 stars. If you wish to handle your loan without using your computer, both of these choices are viable.

Advantages Of Navy Federal Personal Loan

l Low-interest rate: At 18.00 percent, Navy Federal Credit Union’s highest annual percentage rate (APR) is much lower than many other personal loan lenders. Because credit union APRs are capped at 18.00 percent, this is the case. 1 Some lenders that approve clients with bad credit charge interest rates as high as 35.99 percent, which is nearly twice as much as Navy Federal.

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l Small loans are available: Navy Federal Personal loans start at $250, which is significantly less than all other major personal loan providers. A Navy Federal personal loan is a wonderful option to payday loans if you don’t need a large quantity of money. Payday loans typically have significant costs on small loan amounts.

l No origination or prepayment fees: Navy Federal isn’t the only personal loan lender that doesn’t charge these fees, but it’s a nice bonus to have—especially when you consider the reduced interest rate.

Drawbacks Of Navy Federal Personal Loan

To apply, you must meet the following membership eligibility requirements:

l You must be a member of the Navy Federal Credit Union to apply for a loan. You or a family member must be a member of the military forces or a linked department in order to enlist. Many potential borrowers may be deterred from applying for a Navy Federal personal loan because of this condition.

l No prequalification option: A prequalification option allows you to check if you qualify for a personal loan without negatively impacting your credit score. However, because Navy Federal does not provide this option, your credit score may suffer as a result of the hard credit pull after you apply. This issue may deter you from applying if you don’t have good enough credit to almost guarantee a loan.

l Longer-term loans have higher interest rates: the lowest APR is 7.49 percent for a loan of up to 36 months. The lowest feasible rate climbs to 14.79 percent for loans of 37 to 60 months. With some other lenders, such as LightStream, the hike for the lowest rate on lengthier loans isn’t quite as steep.

l High late-payment price: The $29 fee is nearly twice as much as some of the biggest personal loan lenders charge for late payments.Late fees are typically around $15, however some lenders, such as SoFi and Marcus, don’t charge any at all.

Features Of a Navy Federal Personal Loan

The following characteristics distinguish Navy Federal Credit Union from other personal loan lenders:

Term of the Loan

You may have up to 180 months to repay your loan, depending on how you want to use it. The longest term available from other personal loan lenders is usually 84 months or less. The lengthier durations offered by Navy Federal may result in a cheaper monthly payment than you would get from another lender.

Although a longer loan term will result in a lower monthly payment, you will pay more in interest due to a higher APR and the fact that interest accrues over a longer period of time. To save money on interest, choose the shortest loan period you can afford.

Joint Submissions

Including a co-applicant on your loan application may increase your chances of getting approved, or it may help you qualify for a cheaper interest rate than you would otherwise get. You can add co-applicants who will share repayment responsibilities for the loan with you at Navy Federal.

App for mobile devices

Navy Federal provides a mobile app for its members that is available on the App Store, Google Play, and Amazon App Store. You can manage your account, change your information, and make payments using your phone using the app.

How To Get a Personal Loan From Navy Federal Credit Union

A variety of criteria influence whether or not a personal loan application is granted. Underwriting standards vary per lender, but they often include information from an applicant’s credit record as well as other elements that reflect the ability to repay the loan, such as income. Although meeting the standards listed below does not guarantee approval, they can assist you in determining whether a personal loan is the perfect fit for you.

Eligibility for Membership

To apply, you must be a member of NFCU. To join, you or a member of your family or household must have ties to the military, the Department of Defense, or the National Guard. Members can apply for membership online.

Requirements for Credit Scores

Although NFCU does not have a minimum credit score, applicants with higher credit scores have a better chance of qualifying and securing advantageous terms. A minimum score of 670 is recommended.

Requirements for Income

Similarly, NFCU does not reveal its minimal income requirements, although it does consider them. NFCU will also look at your previous banking history with them, so creating a relationship with them before borrowing money could be beneficial.

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Read: American Express Personal Loans | Reviews

Co-signers and co-borrowers are two types of people who can help you get a loan.

You can have a co-borrower but not a co-signer with NFCU. A co-borrower is someone who shares responsibility for loan repayment with the principal borrower, whereas co-signers are only accountable if the original borrower defaults.

How To Get a Personal Loan From Navy Federal Credit Union

Pre-qualifying for a personal loan, completing a formal application, and waiting for loan approval are all common steps in the process. To apply for a personal loan from NFCU, follow these steps:

1. Complete the application form.

The application can be completed online or through the credit union’s app. You can also apply in person at a branch or over the phone at 1-888-842-6328.

2. Be patient and wait for permission.

NFCU will review your application and determine whether or not you will be approved. Keep an ear to the ground in case they contact you for additional information.

3. Sign the loan contract.

Sign the agreement if you are satisfied with the fees and terms offered by NFCU. You are not obligated to take the loan if you are unhappy with the offer.

4. Obtain the funds.

An automated deposit, which you can receive immediately after approval, is the quickest option to receive your funds.

5. Pay back the debt.

Always set up autopay on your loans to make things easy. You’ll never miss a payment again, causing damage to your credit or incurring a fee.

Is Navy Federal Credit Union a Reliable Financial Institution?

The Better Business Bureau profile of Navy Federal Credit Union is presently unrated because the credit union is in the process of responding to previously closed complaints. Previously, the BBB gave the company an A+ rating for trustworthiness. The BBB assesses a company’s trustworthiness by looking at how it handles consumer complaints, advertises honestly, and is transparent about its business processes.

The credit union has been the subject of a recent controversy. According to a Navy Federal employee, the lender urged mortgage underwriters to accept loans even when there was no reason to believe the borrowers could repay the loans. She subsequently filed a complaint, alleging that Navy Federal changed her job tasks in retaliation for her whistleblower. In late 2020, she dropped the case.

If you’re concerned about Navy Federal’s recent controversy and lack of trustworthiness rating, you might want to look for another lender.

Read: TD Bank Personal Loans Review: Everything You Need to Know

How Navy Federal Personal Loans Stack Up

When it comes to personal loans, NFCU isn’t your only option. Here are a few personal loan lenders that are similar and how they compare:

USAA vs. Navy Federal Personal Loans

Another credit union that serves veterans and military personnel is USAA. However, when compared to NFCU, its loan levels pale in comparison. USAA, for example, only offers personal loans ranging from $2,500 to $20,000, but NFCU offers loans ranging from $250 to $50,000.

However, if your primary concern is loan conditions, the best credit union for you will be determined by the purpose of your loan. NFCU offers terms up to 180 months—or 15 years—if you want to use the cash for home repair projects. If you’re spending your money for personal costs or debt consolidation, though, USAA offers periods of up to seven years, compared to five years at NFCU.

PenFed vs. Navy Federal Personal Loans

Although PenFed was founded to serve mainly veterans and military personnel, anyone can now join. It has durations ranging from 12 to 60 months, which is comparable to NFCU unless you want to use your loan for home improvements. NFCU offers terms of up to 180 months (15 years) in this case.

In addition, the loan limits for personal needs and debt consolidation are comparable: NFCU offers loans between $250 and $50,000, whereas PenFed gives loans between $600 and $50,000.

SoFi vs. Navy Federal Personal Loans

SoFi caters to the general population and offers the lowest interest rates and largest loan amounts of the three options. Personal loans, for example, range from $5,000 to $100,000.

SoFi also has several unique benefits that you won’t find anywhere else. It offers an unemployment protection program, for example, where if you are accepted, it will put your loan into forbearance and assist you in finding a new work.

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What Credit Score Do You Need For a Navy Federal Personal Loan?

Navy Federal Credit Union does not disclose the minimum credit score required to be approved for a personal loan, yet a higher credit score will generally result in a lower rate.

If you need to check your credit report, you can do so for free on annualcreditreport.com every week until April 20, 2022 from any of the three main credit bureaus. This report will offer you with information on your payment and credit history, but not your credit score. Examining your credit report might assist you in spotting problems and identifying opportunities for improvement.

Your credit card statement or online account might provide you with your score for free. A credit reporting organization can also sell it to you.

Unfortunately, you can’t apply for a loan without the credit union running a hard credit check on you. A hard inquiry provides a lender with a thorough picture of your credit history, but it may lower your credit score. You can examine your rates with other lenders without affecting your credit score.

Your payments (or lack thereof) will appear on your credit report once you accept the loan. Consistent payments can help you improve your credit score, however late or missed payments can hurt it.

Read: Best Personal Loans with a Cosigner for 2022

FAQs on Navy Federal Personal Loans Review: Everything you need to know

Is Navy Federal Credit Union a genuine company?

Navy Federal Credit Union is a federally insured credit union, according to the National Credit Union Administration. It provides a wide range of financial services in addition to loans.

Is getting a personal loan from a credit union difficult?

It’s not difficult to receive a personal loan from a credit union if your credit is in excellent standing. To take out a loan from the credit union, you may need to become a member.

Is it possible to acquire a personal loan from a credit union?

A personal loan from a credit union is a smart alternative. Credit unions are known for providing excellent customer service and having lower loan minimums than online lenders. Credit unions’ maximum interest rate is similarly restricted at 18 percent by the National Credit Union Administration, so you can receive a better deal with one than with an online lender.

What is the maximum amount you can borrow from a credit union?

The maximum amount you can borrow is determined by the credit union you choose to borrow from as well as your personal financial status. You can borrow up to $50,000 from Navy Federal. With a greater income and credit score, you’ll be eligible for more money in general. The maximum loan amounts on our list of the finest credit unions for personal loans range from $25,000 to $50,000.

Is Navy Federal a good place to refinance a personal loan?

Although a Navy Federal personal loan can be used to consolidate high-interest credit card balances or other debt, it does not currently offer personal loan refinancing.

What information will you need to apply for Navy Federal personal loan?

Make sure you have the following information before filling out the online form:

Date of birth

How much money do you need to borrow?

What you intend to do with the funds.

Who Is Navy Federal Credit Union Best For?

People who are active or retired military, have a military family member, work for a Department of Defense contractor, or are related to a current NFCU member should join.

Conclusion

If you qualify for Navy Federal personal loan, it can be a cost-effective option. It has a wide range of loan amounts and offers home improvement loans with longer durations.

Plus, its interest rates are competitive, and it doesn’t charge origination costs, so borrowing from Navy Federal Credit Union instead of another lender could save you money.

However, Navy Federal’s loans will not be available to everyone.

Furthermore, if you have less-than-perfect credit, you should be aware that there is no pre-qualification tool available, which means there is no way to determine whether you are eligible for a loan without first passing a credit check.

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