Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated top personal loan providers
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Providers RatedOur team researched more than two dozen of the country’s most popular personal lenders, including large online companies like SoFi, big banks like Wells Fargo, and peer-to-peer lenders like Upstart.
660
Data Points AnalyzedTo create our rating system, we analyzed each personal loan company’s disclosures, licensing documents, marketing materials, sample loan agreements and websites to understand their loan offerings and terms.
41
Loan Features TrackedOur team regularly collects data on each company’s loan offerings and terms, such as minimum and maximum loan amounts, origination fees and discounts.
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Professionals ConsultedBefore we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
Our Thoughts on Navy Federal Credit Union Personal Loans
MarketWatch Guides Rating: 4.5 out of 5 stars
We rated Navy Federal Credit Union personal loans a 4.5 out of 5 stars after evaluating dozens of lenders based on various factors, such as affordability, loan features, customer experience and company reputation.
Navy Federal scored high in areas such as loan features and affordability. However, it scored lower in the customer experience category.
>> Related: Learn more about the biggest credit unions in the U.S.
Pros and Cons of Navy Federal Personal Loans
Navy Federal Credit Union has many advantages, such as fast funding and the ability to add a co-applicant. However, there are also a few disadvantages to consider.
Pros
Secured personal loans are available: Unlike other lenders, Navy Federal offers both secured and unsecured personal loans
Co-applicant loans offered: Navy Federal allows you to apply with a co-borrower — someone who agrees to share responsibility for repaying the loan
Possible same-day funding: Once approved, Navy Federal may deposit your funds the same day
Extended repayment term for home improvement loans: Navy Federal offers repayment terms of up to 84 months for home improvement loan amounts of $25,000 and higher and up to 180 months if you borrow at least $30,000
Cons
No option to prequalify: Navy Federal doesn’t allow you to see interest rates and terms that you might qualify for
Membership requirement: You must become a member before applying, which requires opening a Navy Fed savings account and depositing at least $5
Late fee: Navy Federal Credit Union charges a $29 fee for late payments
Higher minimum annual percentage rate (APR) for longer terms: Repayment terms of 37 months or longer come with a much higher rate than shorter loan terms
Who Are Navy Federal Personal Loans Best For?
Navy Federal personal loans are best for Department of Defense employees, active-duty military members, veterans and the families of members of the armed forces. You must belong to one of those groups to apply for a Navy Fed membership. It also might be a good option if you need a small loan since Navy Federal’s minimum loan amount is just $250.
However, Navy Federal won’t be the best option if you’re looking for an unsecured personal loan over $50,000. Plus, if no prequalification application is a deal breaker, you’ll have to consider a different lender.
>> Related: Learn more about the best personal loans for veterans
How To Get a Navy Federal Personal Loan
Take these steps to apply for a personal loan with Navy Federal.
Application Process
Start the process by filling out an application online, in person at a physical branch or by phone at 888-842-6328. When you apply, you’ll need to provide financial and personal information, including your desired loan amount and repayment term, income, current employer’s contact information, email and Social Security number.
If you’re applying with a co-borrower, you’ll have to provide the same information for them along with their Navy Fed Access Number.
>> Related: Learn more about the best personal loans with a co-borrower
Approval and Funding
Navy Federal Credit Union approves most of its loans the same day, according to its website. After signing the loan agreement, funds can be deposited to your account as quickly as the same day.
Navy Federal Personal Loans Reviews
Navy Federal has an excellent 4.6 out of 5-star rating on Trustpilot based on over 25,800 reviews. However, it has a 1.47 out of 5-star rating on the Better Business Bureau (BBB) website, based on just 131 reviews. This is likely a reflection that people only seek out the BBB when they have a negative experience. Also, it’s important to note that the reviews on these websites include Navy Fed’s other products, such as mortgages and home equity loans.
Positive reviews cite good experiences with Navy Federal’s customer service team, while some negative reviews mention higher-than-expected rates.
Here are some of the most recent reviews related specifically to its personal loan product:
“The process was way longer than it needed to be. The rates are higher than other non-secured loans I was offered, Only went with NFCU because they had my mortgage and I like the convenience of the website/app.“
— Michael, Sept. 15, 2023, Trustpilot
“Top notch service from Stephanie at Navy Fed! It was a painless process and her efforts kept us feeling ‘stress free’!“
— Celina, Sept. 18, 2023, Trustpilot
“I applied for a personal loan and was approved. When they gave me the terms and the interest rate, I refused the loan. They then turned around and sent me an email saying I did not get approved for the loan. I have emails to prove it all.“
— Dustan G., Oct. 21, 2022, BBB
Navy Federal did not respond to a request for comment.
Eligibility Requirements for Navy Federal Personal Loans
Other than having to be a member to apply, Navy Federal doesn’t list specific eligibility requirements. That said, lenders typically review your financial situation and credit to determine whether you qualify.
Credit Score and Financial History
Navy Federal doesn’t disclose its minimum credit score requirement on its website. But generally speaking, applicants with higher credit scores have better approval odds and chances of qualifying.
Income and Employment
Navy Federal also doesn’t list any specific income or employment criteria on its website. However, it does review your income when you apply to assess your ability to make monthly payments over the life of the loan.
Navy Federal Personal Loans Usage Rules
You can use a Navy Federal personal loan for just about anything, including the following:
- Home improvements
- Vacations
- Weddings
- Relocation expenses
- Car repairs
- Medical bills
- Emergencies
- Consolidating high-interest credit card debt
However, Navy Federal doesn’t allow you to use its personal loans to cover postsecondary education expenses.
Navy Federal Personal Loans Fees and Penalties
When searching for an option that best fits your budget, knowing which fees a lender charges can help you estimate the total cost of the loan.
Loan Origination Fees
Navy Federal Credit Union doesn’t charge origination fees on its personal loans, so you don’t have to factor them in when evaluating overall costs. Origination fees are typically a percentage of the loan amount deducted from what you actually receive.
Early Repayment Penalties
You can pay off your Navy Federal loan early without worrying about a prepayment fee. When shopping around for a loan, choose a lender that doesn’t charge this fee if you are considering paying off your loan early without additional fees.
Late and Returned Payment Fees
Navy Federal Credit Union will charge you a $29 late fee if your payment becomes past due. You’ll also have to pay a $29 fee if your payment is returned.
>> Related: Learn more about loan origination fees
How Navy Federal Compares to Other Lenders
While shopping around, research and compare several lenders to find the best deal for your unique needs and budget. Here’s how Navy Federal personal loans stack up against a few competitors.
LightStream offers a broader range of loan amounts than Navy Federal — $5,000 to $100,000. As a result, it makes it a better choice if you need to borrow over $50,000. LightStream’s minimum APR is the same as Navy Federal’s, but its maximum rate is significantly higher.
Unlike Navy Federal, LightStream requires applicants to have good to excellent credit and at least five years of credit history to qualify.
SoFi also offers larger loans — qualified applicants can borrow from $5,000 to $100,000. SoFi’s starting rate is slightly higher than Navy Federal’s, and its maximum rate is much higher as well. You need a credit score of at least 680 to qualify for a SoFi personal loan.
PenFed offers a similar loan amount range to Navy Federal: $600 to $50,000. It also has the same APR range as Navy Fed. However, the key difference is that, unlike Navy Federal, PenFed doesn’t offer rates based on the loan term you select. This means that securing the lowest rate on loan terms of up to 60 months is possible.
Like Navy Fed, you must become a member of PenFed before accepting the loan. Membership, however, is open to a broader range of consumers — you can become a member as long as you open a PenFedsavings accountand deposit at least $5.
>> Related: LightStream vs. SoFi personal loans
The Bottom Line
Navy Federal Credit Union could be an excellent option if you’re a military member or a military family member. It offers competitive minimum rates on loans with repayment terms lower than 36 months, and funds can be deposited into your bank account the same day upon approval. But if you’re seeking a longer repayment term, you might want to look elsewhere, as Navy Fed charges a much higher rate at the 37-month threshold. Before you choose a lender, always compare terms, rates and fees from multiple companies.
>> Related: Review our list of the best personal loans
How We Rate Navy Federal Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability (35%): How expensive each company’s loans are to pay back.
- Loan features (35%): The breadth of loan terms and features available to prospective customers.
- Customer experience (20%): Ease of application, prequalification and customer service interactions.
- Company reputation (10%): An exploration of lenders’ BBB files, customer reviews and outstanding regulatory actions.
| Affordability | 35/35 |
| Loan features | 29/35 |
| Customer experience | 12/20 |
| Company reputation | 5/10 |
| Total | 81/100 |
Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.
Frequently Asked Questions About Navy Federal Credit Union Personal Loans
Navy Federal Credit Union doesn’t disclose its minimum credit score requirement on its website. The higher your credit score, of course, the better your chances of securing the lender’s minimum APR. If you have poor credit, adding a co-borrower with good credit to your loan application may help you qualify.
How challenging it may be to get approved for a Navy Federal loan depends on many factors, such as your credit profile, income, current monthly debt load and desired loan amount.
Once approved, Navy Federal can deposit funds into your bank account as early as the same day in most circ*mstances.
Unfortunately, there’s no way to know if your Navy Federal loan application will be approved or denied before applying. Although some other lenders, unlike Navy Federal, allow you to check estimated rates and terms without affecting your credit before submitting a formal application, prequalifying doesn’t mean guaranteed approval.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
