Is it hard to get approved for a loan at Navy Federal?

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The bottom line: Navy Federal Credit Union offers an impressive range of loan amounts, especially for borrowers who only need a small sum of cash. However, there are stringent membership requirements that make the credit union inaccessible to some borrowers. 

Navy Federal personal loan amounts and interest rates

Navy Federal Credit Union has personal loan amounts that range from $250 to $50,000. Navy Federal has one of the lowest minimums around, and comparable maximums to other credit unions. For example, PenFed's loan amount range is $600 to $50,000, and the range for Alliant's personal loans is $1,000 to $50,000. Most online lenders have higher minimum loan amounts. 

Navy Federal offers term repayment lengths from six months to five years. There are no prepayment penalties on your loan.

Navy Federal's interest rates vary from 7.49% to 18.00% APR. Navy Federal has a higher minimum interest rate than PenFed (7.74% APR) and Alliant, which starts at 10.49% APR. You may consider a different lender with lower minimum rates if your credit is in excellent shape. 

Pros and cons of Navy Federal personal loans

Pros

• Wide range of loan amounts. You can take out as little as $250 or as much as $50,000.
• No origination fees or prepayment penalties. Other lenders may charge these fees. 
• You can apply with a co-borrower. A co-borrower can help you get a better rate on your loan if they have a good credit score.
• 24/7 customer service over the phone. You can speak to someone around the clock, whenever you need.  

Cons

• You have to be a member to get your loan. It's relatively hard to qualify for Navy Federal membership. You're only eligible if you are active military member, veteran, employee or retiree of the Department of Defense, or family member of someone in one of those groups. 
• Late fee. The credit union charges a $29 late payment fee. 
• High minimum APR. If you have a great credit score, you can likely get a better rate elsewhere. 

Today's personal loan rates

How Navy Federal Credit Union personal loans work

Navy Federal Credit Union offers unsecured personal loans, which are loans that don't require collateral, such as a house or 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 need to be a member of Navy Federal to apply for and receive a personal loan. You're only eligible if you are active military member or a veteran, as well as an employee or retiree of the Department of Defense. Family members of any of the aforementioned groups are also eligible. 

You can get a personal loan from Navy Federal in all 50 states. Navy Federal allows you to apply with co-borrower, which may help you get a better rate if your co-borrower has a great credit score. You can fill out your application online and get your rate within several minutes. If you're looking for a debt consolidation or home improvement loan, you'll have to apply over the phone or in person. 

In most cases with Navy Federal, you'll get your money the same day you apply.  

There are many options to get your customer support questions answered. You can call customer support 24/7, send a secure message from your online banking account, set up an in-person meeting, message a chatbot, send physical mail, or reach out to the company on social media. 

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 computer. 

What credit score do you need for a Navy Federal personal loan? Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

Navy Federal Credit Union doesn't make its minimum credit score to be eligible for a personal loan public — though in general, a higher credit score will secure you a lower rate.

If you need to access your credit report, you can get it at no cost from any of the three major credit bureaus on annualcreditreport.com weekly through April 20, 2022. This report will give you information about your payment and credit history, but it won't provide you with your credit score. Looking over your credit report can help you spot errors 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 can't apply for a loan with Navy Federal without the credit union generating a hard credit inquiry. A hard inquiry gives a lender a complete view of your credit history, but might 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 show up on your credit report. Consistent payments can help boost your credit score, while late or missing payments may lower your score. 

Is Navy Federal Credit Union trustworthy?

Navy Federal Credit Union's Better Business Bureau profile is currently not rated as the credit union is in the process of responding to previously closed complaints. Previously, the business had an A+ trustworthiness rating from the BBB. The BBB measures its trustworthiness score by looking at how a company's responds to customer complaints, its honesty in advertising, and its transparency about business practices. 

There is one recent controversy related to the credit union. A Navy Federal employee alleged that the lender pressured mortgage underwriters to approve loans even without proper reason to believe applicants could pay back the loans. She then filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.

You might prefer a different lender if you're bothered by Navy Federal's recent controversy and lack of trustworthiness rating. 

How Navy Federal Credit Union personal loans compare

APR

7.49% to 18.00%

APR

7.74% to 17.99%

APR

starts at 10.49%

Loan amount range

$250 to $50,000

Loan amount range

$600 to $50,000

Loan amount range

$1,000 to $50,000

Apply for a loan

Apply for a loan

Apply for a loan

With a minimum loan amount of $250, Navy Federal offers the lowest minimum compared to PenFed ($600) or Alliant ($1,000). All credit unions let you borrow up to $50,000. 

Navy Federal has more strict membership requirements than PenFed or Alliant, as you only qualify if you are active military member or a veteran, as well as an employee or retiree of the Department of Defense. Family members of any of the aforementioned groups are also eligible. 

You can join PenFed if you've served in the military or worked at qualifying associations or organizations. You can also join by opening a savings account with a $5 minimum deposit. The easiest way to become a member of Alliant is to join Foster Care to Success, and Alliant will cover your $5 joining 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 Navy Federal legitimate? Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

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 outside of loans.  

Is it hard to get a personal loan from a credit union?

It isn't hard to get a personal loan from a credit union — as long as your credit is in good shape. You may have to join the credit union to take out a loan from it. 

Is a credit union a good place to get a personal loan?

Credit unions are a good option to get a personal loan. Credit unions often have high-quality customer service and smaller loan minimums than online lenders. Credit unions also have their maximum interest rate capped by the National Credit Union Administration at 18%, so you may get a lower rate with one than with an online lender. 

How much can you borrow from a credit union?

Your maximum borrowing amount depends on the credit union you chose to borrow from and your particular financial situation. With Navy Federal, you can borrow up to $50,000. In general, you'll be eligible for more money with a higher income and credit score. On our list of the best credit unions for personal loans, the maximum amounts range from $25,000 to $50,000. 

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