Navy Federal Credit Union Personal Loans Review 2021
Loan amounts and interest rates
Navy Federal Credit Union has personal loan amounts ranging from $ 250 to $ 50,000. Navy Federal has one of the lowest minimums on the market and comparable to other maximums.
. For example, PenFed’s loan amount range is $ 600 to $ 50,000, and Alliant’s personal loan range is $ 1,000 to $ 50,000. Most online lenders have higher minimum loan amounts.
Navy Federal offers repayment terms ranging from six months to five years. There is no prepayment penalty on your loan.
Navy Federal interest rates range from 7.49% to 18.00% APR. Navy Federal has a higher minimum interest rate than PenFed (5.99% APR) and Alliant, which starts at 6.24% APR. You may want to consider a different lender with lower minimum rates if your credit is in excellent shape.
Advantages and disadvantages
How the Navy Federal Credit Union Works
The Navy Federal Credit Union offers unsecured personal loans, which do not require collateral, such as a house or a car.
You can get a personal loan from Navy Federal for several reasons, including auto repairs, vacations, and other major purchases.
Unlike other credit unions, you must be a member of Navy Federal to apply for and receive a personal loan. You are only eligible if you are an active military or veteran, as well as an employee or retiree of the Department of Defense. Family members of any of the above groups are also eligible.
You can get a personal loan from Navy Federal in all 50 states. Navy Federal allows you to apply with a co-borrower, which can help you get a better rate if your co-borrower has a great credit rating. You can complete your request online and get your rate in minutes. If you are looking for a debt consolidation or home improvement loan, you will need to apply over the phone or in person.
In most cases, with Navy Federal, you will receive your money the same day you request it.
There are many options to get your answers to customer support questions. You can call customer service 24/7, send a secure message from your online bank account, set up an in-person meeting, message a chatbot, send physical mail, or contact the company on networks. social.
Navy Federal has a mobile app in the Google Play Store, rated 4 out of 5 stars, and an app in the Apple Store, rated 4.8 out of 5 stars. Both are good options if you want to manage your loan away from your home. computer.
What credit score do you need?
The Navy Federal Credit Union does not make public its minimum credit score to qualify for a personal loan, although a higher credit score will generally guarantee you a lower rate.
If you need to access your credit report, you can get it for free from any of the three major credit bureaus at annualcreditreport.com weekly until April 20, 2022. This report will give you information about your payment and credit history, but it will not provide you with your credit score. Examining your credit report can help you spot mistakes and find areas for improvement.
You can get your score for free on your credit card statement or online account. You can also buy it from a credit reporting agency.
Unfortunately, you cannot apply for a loan from Navy Federal without the credit union generating a serious credit application. Thorough investigation gives the lender a complete view of your credit history, but can negatively affect your credit score. Other lenders allow you to check your rates without impacting your credit score.
After you accept the loan, your payments (or lack thereof) will appear on your credit report. Regular payments can help boost your credit score, while late or missing payments can lower your score.
Is the Navy Federal Credit Union Trustworthy?
The Navy Federal Credit Union Better Business Bureau profile is currently not rated as the credit union is in the process of responding to previously closed complaints. Previously, the company had an A + reliability rating from the BBB. The BBB measures its reliability score by examining how a business responds to customer complaints, its honesty in advertising, and its transparency about business practices.
There is a recent controversy related to the credit union. An employee of the Federal Navy alleged that lender pressured mortgage underwriters approve loans even without a valid reason to believe that the applicants could repay the loans. She then filed a complaint and said the Navy Federal retaliated against her denunciation by changing her duties. She dropped the case end of 2020.
You may prefer another lender if you are bothered by the recent Navy Federal controversy and unreliability.
How does the Navy Federal Credit Union compare
With a minimum loan amount of $ 250, Navy Federal offers the lowest minimum compared to PenFed ($ 600) or Alliant ($ 1,000). All credit unions allow you to borrow up to $ 50,000.
Navy Federal has more stringent membership requirements than PenFed or Alliant, as you are only eligible if you are an active military or veteran, as well as a Department of Defense employee or retiree. Family members of any of the above groups are also eligible.
You can join PenFed if you have served in the military or worked in qualified associations or organizations. You can also sign up by opening a savings account with a minimum deposit of $ 5. The easiest way to become an Alliant member is to join Foster Care to Success, and Alliant will cover your $ 5 membership fee.
Navy Federal has a higher minimum interest rate than PenFed or Alliant, so you may get a better deal with one of the other credit unions.
Frequently Asked Questions
Is the Federal Navy legitimate?
Yes, Navy Federal Credit Union is a legitimate credit union federally insured by the National Credit Union Administration. It offers a variety of financial products besides loans.
Is it difficult to get a personal loan from a credit union?
Getting a personal loan from a credit union is not difficult, as long as your credit is in good condition. You may need to join the credit union to borrow from it.
Is a credit union a good place to get a personal loan?
Credit unions are a good option for obtaining a personal loan. Credit unions often have high quality customer service and lower minimum loans than online lenders. Credit unions also have their maximum interest rate capped by the National Credit Union Administration at 18%, so you can get a lower rate with one than with an online lender.
How much can you borrow from a credit union?
The maximum amount you can borrow depends on the credit union you have chosen to borrow from and your particular financial situation. With Navy Federal, you can borrow up to $ 50,000. In general, you will be entitled to more money with a higher income and a higher credit rating. On our list of the best credit unions for personal loans, the maximum amounts range from $ 25,000 to $ 50,000.