Navy Federal Personal Loan Review
8.99% - 18.00%
Up to 60 months
$250 to $50,000
Not specified
LendingTree rating: 3.8/5
Accessibility: 2.5/5
Rates and terms: 4.8/5
Repayment experience: 4.0/5
Navy Federal Credit Union offers a variety of financial products, including credit cards, bank accounts and investments. Here’s what you need to know about Navy Federal’s personal loans:
- Must have military affiliation: Navy Federal’s loans are exclusive to people with connections to the military. This includes anyone who has previously or currently serves in the military, plus their families and household members.
- Quick funding: Navy Federal typically deposits your money the same day you close on your loan agreement.
- Low APRs: Federal credit unions cap their personal loan annual percentage rates (APRs) at 18.00%, which is much lower than the 36% maximum from many banks and online lenders.
- Long repayment terms: For home improvement loans, Navy Federal offers repayment terms as long as 180 months. Loans for other purposes go up to 60 months.
- Co-applications available: If you have a low credit score, consider applying for a Navy Federal loan with a second person. Getting a personal loan with a cosigner can help you qualify for better rates — or get a loan in the first place. The other person is equally responsible for paying off the loan.
- Best for small loan amounts: At $250, Navy Federal offers some of the smallest loans on the market. Loans from other reputable lenders usually start at $1,000 or more.
Navy Federal pros and cons
Navy Federal personal loans are affordable, and credit union membership has its perks, but you should consider the downsides before signing on the dotted line.
| Pros | Cons |
|---|---|
APRs are under 18.00% No upfront fees Same-day funding available Can apply with another person | Need to have a military connection Must become a Navy Federal Credit Union member $29 late fee Recent action from Consumer Financial Protection Bureau on Navy Federal overdraft fees |
Since Navy Federal’s APR only goes as high as 18.00%, borrowers may receive lower rates than they would with a bank or online lender, especially if they have bad credit. Borrowers may also be eligible for same-day funding and can use a co-applicant if they don’t qualify for a loan with Navy Federal otherwise.
On the downside, getting a loan from a credit union like Navy Federal means you’ll have to become a member first. Membership is only available to those with past or current military connections.
Navy Federal skips common fees like upfront origination fees, but it does charge a $29 late fee, which is on the pricey end for a personal loan lender. And Navy Federal is in hot water after the Consumer Financial Protection Bureau ordered the credit union to pay millions of dollars for illegally charging overdraft fees.
Keep in mind your rates and terms are limited depending on why you need the money.
| Navy Federal loan type | APR | Loan terms | Loan amounts |
|---|---|---|---|
| Personal expense loan | 8.99%-18.00% | Up to 60 months | $250 to $50,000 |
| Debt consolidation | 8.99%-18.00% | Up to 60 months | $250 to $50,000 |
| Home improvement | 8.99%-18.00% | Up to 180 months | $250 to $150,000 |
Navy Federal requirements
To get a loan, Navy Federal requires that you become a member first. Navy Federal is specific when it comes to who qualifies for credit union membership. However, it doesn’t specify a minimum credit score or income for loans, so it can be hard to know if your credit is up to Navy Federal’s standards.
| Military member requirements |
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| Military member family requirements |
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| Other requirements |
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While Navy Federal does allow borrowers to use its funding for a variety of purposes, there are certain expenses you cannot put the money toward.
| Navy Federal loans CAN be used for… | Navy Federal loans CANNOT be used for… |
|---|---|
Personal expenses Home improvement projects Debt consolidation | Education expenses |
If Navy Federal’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
How to get a personal loan with Navy Federal
Since you have to be a Navy Federal member to get a loan, this lender’s application process is slightly more involved.
Apply for membership
To become a member of Navy Federal, you’ll need to specify your military connection. If you are a current or former servicemember, you’ll need to divulge the branch you served in, your rank and when you served.
You’ll also need to provide your personal information, including your Social Security number, citizenship status and whether someone referred you to Navy Federal.
Fill out loan application
Once you’re approved to become a member, you’ll be eligible to apply for a personal loan. During this process, you’ll need to share and verify information such as your income, employment status and credit score.
Unfortunately, Navy Federal doesn’t provide the option to prequalify for a loan. Prequalification services allow you to see what potential rates and terms you may be eligible for without any impact to your credit score.
When you submit your application, Navy Federal will run a hard credit inquiry. This will allow Navy Federal to see your credit reports and can cause your credit score to go down temporarily by several points.
Close on loan
If Navy Federal approves you for a loan, you’ll need to sign your personal loan contract. Once you accept your loan, Navy Federal can deposit your funds that same day.
If you’re not approved for a Navy Federal personal loan, consider ways to boost your chances — things like using a co-applicant, improving your credit score and checking your credit reports for any errors.
How Navy Federal compares to other personal loan companies
Even if you believe Navy Federal aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Navy Federal stacks up against similar personal loan lenders.
| Lender | Navy Federal Credit Union | PenFed Credit Union | Upstart |
|---|---|---|---|
| LendingTree’s rating | 3.8/5 | 4.3/5 | 4.5/5 |
| Minimum credit score | Not specified | Not specified | 300 |
| APRs | 8.99% - 18.00% | 8.99% - 17.99% | 7.40% - 35.99% |
| Loan amount | $250 to $50,000 | $600 to $50,000 | $1,000 to $50,000 |
| Repayment term | Up to 60 months | 12 to 60 months | 36 or 60 months |
| Origination fee | None | None | 0.00% - 12.00% |
| Funding timeline | As soon as the same day | As soon as the same day | As soon as the next business day |
| Bottom line | Navy Federal Credit Unions narrow eligibility requirements make it difficult for many people to qualify. But for those who do, it offers competitive features such as low APRs, no origination fees and long terms. | PenFed Credit Union has several similar features to Navy Federal, but you don’t need a military connection to qualify. | Upstart is an online lender that offers competitive starting rates and low eligibility requirements — no military affiliation necessary. |
How we rated Navy Federal
To determine our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent but also competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Frequently asked questions
Navy Federal doesn’t publicize its credit requirements for personal loans, but it does say it lends to members across the credit spectrum. If you have a bad credit score and aren’t sure you’ll qualify, try applying with a co-applicant. A co-applicant can lower your risk in the eyes of lenders because both you and the other person will be responsible for repaying the loan.
After Navy Federal approves you and you accept your loan terms, Navy Federal can deposit your money on the same day. Quick loans can be especially helpful if you have an unexpected financial obstacle in your way that you can’t afford up front.
Navy Federal will likely need to verify your income if you apply for a personal loan. This allows the lender to determine if you can afford to repay it and that you won’t default on the loan. You can verify your income by providing Navy Federal with financial documentation, such as bank statements, recent pay stubs and W-2s.