When you’re looking to borrow money, there are different lenders you can consider, including the Navy Federal Credit Union. There are a variety of personal loan levels and repayment options to choose from, making it a versatile lender. However, only current Navy Federal members, including active duty service members and their families, are eligible for personal loans. Navy Federal personal loan reviews break down the pros and cons of borrowing money from this financial institution, so here is an in-depth guide of what you need to know before putting pen to paper.
What Is the Navy Federal Credit Union?
The Navy Federal Credit Union is a nonprofit financial institution that was established in 1933. Currently, it’s the largest retail credit union in the United States and is based in Virginia. With over 350 locations and ATMs spread across the nation and abroad, the Navy Federal Credit Union serves over 11 million military community members.
If you want to join Navy Federal, you need to be:
- Active duty, retired, or a veteran in any branch of the military
- Immediate family or a household member of a service member
- DOD employee, contractor, or retiree
What Is a Navy Federal Personal Loan?
A Navy Federal personal loan is a form of financing that the Navy Federal Credit Union provides to individuals to enable them to pursue their personal goals, such as debt consolidation and home improvement. You could also apply for a personal expense loan to finance planned and unplanned expenses, such as auto repairs and vacations. Navy Federal personal loans range from $250-$50,000 and are available for up to 15 years, and you can opt for either a secured or unsecured personal loan.
Types of Navy Federal Personal Loans
Navy Federal’s unsecured personal loans attract a lower annual percentage rate than most lenders in the market, with a repayment period of up to 15 years, depending on the amount you borrow. For instance, the minimum you can borrow for an 85- to 180-month loan term is $30,000. An unsecured loan does not have origination or check processing fees. A late payment and a returned payment typically attract a penalty. There is no penalty for prepayment. Payments are required on a monthly basis.
Navy Federal also offers secured personal loans, which are backed by the value of your Navy Federal savings account. For this reason, the loan value cannot be greater than the amount of money in your account. If you have $25,000 in your savings account, for instance, a secured personal loan from Navy Federal cannot exceed that amount.
For a certificate pledged loan, the loan amount can only be up to the value of the CD. You are required to repay your loan every month. The Navy Federal Credit Union does not make direct payment to creditors. If a borrower has some payments to settle, they have to do it themselves.
Navy Federal Personal Loan Application Process
You can apply for the Navy Federal personal loan online, over the phone, or in person. You can apply for a personal cost loan on Navy Federal’s website. However, if you select any other one of its personal loans, you’ll have to contact Navy Federal or attend in person to complete the application.
Regardless of the application option you chose, you must inform the credit union of the length of the loan and the amount you wish to borrow for your application to be considered. Along with your Social Security number, you’ll also need to include details about your present employment, your yearly income, and your contact and personal information.
You may apply with a cosigner who is a credit union member at the Navy Federal. If you opt for this option, you will need your cosigner’s name, address, phone number, email address, annual income, employer’s name and number, Social Security number, and NFCU access number. When cosigning, the lender typically bases the loan rate on the cosigner’s credit score.
Credit Score for Navy Federal Personal Loans
Though a higher credit score may often earn you a lower interest rate, Navy Federal Credit Union doesn’t make public its minimum credit score to be eligible for a personal loan. The Union conducts a hard inquiry on your credit history. A hard inquiry may have a negative impact on your credit score, but it gives lenders a thorough picture of your credit history.
Any of the three major credit bureaus will provide you access to your credit report. They won’t include your credit score in this report, but it will contain details about your payment and credit history. You might discover inaccuracies and possibilities for improvement by reviewing your credit report.
Income Requirements
The Navy Federal Credit Union doesn’t make its minimum income requirements public, but it does take income into account. One advantage of establishing a relationship with them before taking out a loan is that it allows the lender to have a look at your previous banking history, which may increase your chances of qualifying for the loan.
Advantages and Disadvantages of Navy Federal Personal Loans
If you’re still trying to decide whether to take out a Navy Federal personal loan, reviewing the pros and cons can be helpful. Here are the primary advantages of taking a personal loan from the Navy Federal Credit Union:
- APR discount: Retired military personnel or those on active service will typically get an APR discount.
- Capped APR: While you might find a lower rate somewhere else, Navy Federal’s APR is significantly lower than most of its contemporaries.
- Same-day funding: The Navy Federal deposits your personal loan into your account the same day it’s approved.
- Customer-friendly: In order to make it simpler for members to repay their loans, Navy Federal also offers helpful resources to its customers. For instance, it provides 24/7 customer service and a monthly payment calculator to help users visualize their payments.
- Broad loan amounts: You can choose different personal loan amounts ranging from $250 to $50,000. This makes it suitable to cover small personal matters such as a car repair and major projects such as home renovation.
Some disadvantages of this loan include:
- Eligible only to union members
- Doesn’t offer discount for autopay
- Doesn’t give members options to change payment dates
- Conducts a hard credit inquiry on applicants
All in all, the Navy Federal Credit Union is a fantastic option for borrowers who simply require a modest amount of money to meet their personal obligations. However, this lender is inaccessible to some borrowers because of strict membership criteria. If you’re undecided about these loans, going through Navy Federal personal loan reviews from their customers can help you make the right decision.
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