Navy Federal Personal Loans Review
Navy Federal Credit Union is a nonprofit financial institution that offers financial products at reduced interest rates. However, there are requirements for becoming a Navy Federal member and specific ways to apply for a personal loan.
What we like:
Long and flexible term length options
|Rates (APR)||8.19% – 18.00%|
|Loan Terms||1 – 15 years|
|Loan Amounts||$1,000 – $50,000|
|Fees||Origination fee: None|
Prepayment penalty: None
Late fee: $29
Founded in 1933, the Navy Federal Credit Union is a nonprofit financial organization that provides financial products and services to more than 8 million members. Now, it’s the largest retail credit union in the U.S.
To become a Navy Federal member, you must be associated with either the military, the Department of Defense, or the National Guard. This includes members of the Army, Air Force, Marine Corps, Navy, and Coast Guard. Navy Federal offers a variety of products and services to its members, including personal loans.
If you meet the membership requirements and are in need of additional financing, a Navy Federal Credit Union personal loan could be the right choice for you. Let’s look more closely at how to apply for a personal loan through Navy Federal.
In this review:
- Applying for a Navy Federal Personal Loan
- Navy Federal Loan Rates, Terms, Fees, and Limits
- Benefits of a Navy Federal Personal Loan
- Downsides of a Navy Federal Personal Loan
Applying for a Navy Federal Personal Loan
If you want to consolidate credit card debt or finance a home improvement project, you may want to consider taking out a personal loan. If you meet the requirements, credit union personal loans, like those offered by Navy Federal, can be a good option because they tend to offer lower interest rates and fees than other lenders.
For instance, Navy Federal caps interest rates on their personal loans at 18%. In comparison, many online lenders cap their interest rates at 36%.
>> Read More: Personal loan interest rates
Before you can apply for a personal loan from Navy Federal, you have to become a member. Membership is open to the U.S. armed forces, U.S. Department of Defense, veterans, and their families.
When considering whether to approve members for a loan, Navy Federal looks at a borrower’s credit history, their debt-to-income ratio, and their current employment status. However, they are sometimes willing to lend to borrowers with little to no credit history.
It’s easy and fast to apply for a loan online. Navy Federal does have branches available in many states, though not everywhere.
Alternatives to Navy Federal Personal Loans
Navy Federal Loan Rates, Terms, Fees, and Limits
Navy Federal Credit Union offers a variety of loan terms at competitive rates and with low fees. Here is some basic information about taking out a personal loan through Navy Federal:
- Rates: Navy Federal offers personal loan amounts up to $50,000 with annual percentage rates from 8.19% to 18%.
- Terms: Loan repayment terms are between 12 and 60 months for all regular personal loans. Repayment terms between 60 and 180 months are available for home improvement loans only.
- Fees: There are no prepayment or origination fees.
- Limits: There are no minimum qualifications to taking out a personal loan from Navy Federal. However, borrowers must membership requirements.
Benefits of a Navy Federal Personal Loan
Navy Federal Credit Union loans offer borrowers several benefits such as the active duty discount. Members who are either out on active duty or are retired military members will receive a 0.25% APR discount on specific loans, including personal loans. This is a deal that is only available to active or retired members of the U.S. military.
Navy Federal also provides useful tools to make it easier for members to repay their loans. For example, it offers a monthly payment calculator so members understand what their monthly payment plan will look like for a personal loan.
Although you may be able to find a lower rate elsewhere, Navy Federal caps its maximum APR at 18%, which is much lower than many of its competitors.
Downsides of a Navy Federal Personal Loan
Navy Federal loans have a number of advantages, but there are a few downsides to consider. Unlike other lenders, Navy Federal will do a hard credit pull on all loan applications, so your credit score could temporarily go down as a result of applying.
Furthermore, you cannot take out a personal loan through Navy Federal unless you have ties to the U.S. military or the U.S. Department of Defense.
Plus, while Navy Federal’s rates are very competitive, it’s possible to find a lower rate with other lenders. Essentially, Navy Federal is a good option for borrowers with average credit and ties to the military — but borrowers with great credit may be able to find a better deal elsewhere.
If you are not a military member or if you want to consider other options, here are three other lenders with loans that might compete with Navy Federal:
- Wells Fargo offers unsecured personal loans with rates starting as low as 7.49% APR. Wells Fargo is a good choice because it offers repayment terms that are more flexible than what Navy Federal offers.
- SoFi offers personal loans for borrowers with excellent credit starting at 6.79% APR with autopay. Plus, SoFi offers flexible repayment terms and unemployment protection.
- Discover is another good option. Its personal loan rates range from 6.99% to 24.99%, which is fairly typical. But Discover offers a 30-day money back guarantee on their personal loans. So, if you change your mind, you can return the money within 30 days without getting stuck paying any interest.
>> Read More: Best personal loans
If you need a personal loan, Navy Federal Credit Union could be the right lender for you. It offers personal loans and other financial products for active military members, veterans, U.S. Department of Defense employees, and their family members. With the goal of serving members, Navy Federal can keep its rates low and its terms flexible.
However, you may be able to find a lower interest rate from another lender, so be sure to do your homework and consider all your options first.4.35 Navy Federal Credit Union Personal Loans
Author: Jamie Johnson
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