Credit Union

5 Things Everyone Gets Wrong About Navy Federal Credit Union Personal Loans

Navy Federal Credit Union is a credit union that operates from Vienna, Virginia, in the United States. The institution offers various kinds of products and services, including the Navy Federal Credit Union personal loan that members can apply for multiple uses such as business development, payment of hospital fees, school fees, renovation of houses, and many more. Navy Federal Credit Union is also called Navy Federal. Since its establishment, the company members have increased from 7 to over 10 million.

The credit union operates under the regulation of the National Credit Union Administration (NCUA). The body regulates, charters, and supervises federal credit unions to ensure that they operate ethically. We all know that if financial institutions run without regulations, some may start exploiting their customers by charging high interest rates and making unnecessary deductions on their money. We have heard of credit unions that disappeared with their customers’ money there before, and most governments of the world have laid down strict rules on financial institutions.

When the credit union started its operations in 1933, it was known as the Navy Department Employees’ Credit Union. Only Navy Department employees in the federal employees’ labor union and their family members were eligible to join during that time. However, later in 1954, the credit union changed its charter to include Navy and Marine Corps officers. In 2003, the credit union opened doors for Navy contractors to join them. Later in 2008, the members of the Department of Defense were also allowed to enter.

Five things everyone gets wrong about Navy Federal Credit Union personal loans

There are various notions that people have about the Navy Federal Credit Union that are not true. The five things that people get wrong about the Navy Federal Credit Union personal loans are as follows.

1) That the credit union charges high interest rates

Since most banks and other financial institutions have high interest rates that may go up to 36%, people tend to think that the Navy Federal Credit Union personal loans have such high rates. However, the credit union offers personal loans with low interest rates of up to 18%. It makes it one of the best credit unions for personal loans.

There is a lot of saving when you pick personal loans from the union as compared to others. For example, if you apply for a $10,000 loan from the credit union to repay within three years, you will pay $13,014 in total,  which is far low compared to the $16,489 you could have repaid with a 36% APR from other institutions.

However, it does not indicate that the credit union rates are the best. There are other institutions with much lower APR whereby people with excellent credit scores should try their luck to lower the overall cost.

2) That members do not need security to borrow personal loans

People think that you can get a personal loan without presenting any security once you are a Navy Federal Credit Union member. The truth is that your credit scores determine whether you will get a personal loan or not. For good credit scores, one can get unsecured loans.

However, if your credit scores are poor, you will borrow loans against your Navy Federal savings account or CD. That means that the amount of loan you get cannot exceed the one you have in your savings account. Any of the two loans have a long repayment term of at least 15 years. The repayment options are monthly.

Furthermore, secured and unsecured personal loans have no origination fee. Also, there is a check processing fee or prepayment penalties. However, the late payment fee is $29, while the NSF/returned payment fee is also $29.

3) That application is tedious

It is not true when some people think that applying for a personal loan at Navy Federal Credit Union Personal Loan is a tiresome process. The credit union has three main ways in which members can apply for their loans.

They include; 

  • Online
  • By phone
  • In person

The online application requires you to log into your account online and submit your application. Applying by phone requires you to call the concerned loan officers via 1-888-842-6328  to help you apply for the loan while the in-person loan application requires you to visit a physical branch and submit your loan application by filling in the necessary paperwork manually.

When applying for the personal loan, you will have to provide your contact and personal information, employment status and annual income, and your Social Security Number. You can apply for a personal loan with a cosigner. You will also have to provide their details, including the address, date of birth, email, phone number, employer’s name, and number, annual income, NFCU access number, and Social Security Number.

Once you apply for the loan, you can get the money in your account within three days. The credit union does hard credit checks to those applying and thus affecting your scores. Interestingly, the credit unions report to the credit bureaus, and you can grow your scores if you pay your loan correctly.

4) That the personal loans are limited

It is wrong to say that the Navy Federal Credit Union personal loans are limited to few expenditures. The truth is that you can get a personal loan for various uses such as;

i) Personal expenses loan

You may need a loan to improve your lifestyle by buying new clothes, new shoes, household goods, and car repairs, among others. The Navy Federal Credit Union cannot decline such a request so long as you have met all the eligibility criteria.

You can have a 36-month repayment term with 7.49-18.00% or opt for the 37-60 months with an APR of 14.79-18.00%. You can get loans amounting from $250 to $50,000.

ii) Home improvement loan

If your house is leaking, the paintings are old, the doors and windows are weak, or the floor is bad, you can get a personal loan from the credit union to repair the house. There is no collateral needed. You can get a minimum loan amount of $25,000 for 61 to 84 months and a minimum loan amount of $30,000 for 85 to 180 months.

If you get a loan of up to 36 months, you will get an APR of 7.49-18.00%, while a personal loan with a repayment term of 37 to 60 months requires you to part with 14.79-18.00% APR. 61 to 180 months loan attracts an APR of 15.29-18.00%.

iii) Debt consolidation loan

You can get a loan to repay all your existing debts as one debt. There are loans with affordable monthly payments of up to 36 months, with a 7.49-18.00% APR. 37 to 60 months personal loan attracts an APR of 14.79-18.00%.

Other types of personal loans include savings secured and certificate secured loans. Being flexible in the kind of loan you can apply makes it the best credit union for small businesses.

5) That only Navy officers can apply for the personal loans

Navy Federal Credit Union Personal Loans

It is not true that only the Navy officers can apply for personal loans at the Navy Federal Credit Union. The credit union allows the DoD, all the armed forces, veterans, and their families to join the union. Furthermore, the credit union operates beyond the geographical borders of the US and is among the largest credit unions in the world.

How do I join the Navy Federal Credit Union?

The first qualification step is to either be a DoD member of the armed forces, a veteran or be a family member of the aforementioned. The family members who qualify include parents, grandparents, spouses, siblings who include children (adopted and stepchildren included), grandchildren, and household members.

If you fall in any of the above groups, the next thing is now having the proper documents. They include the following.

  • Social Security Number
  • Current home address
  • Driver’s license or government ID
  • Credit card or a bank account and routing number for funding your account

With the documents above, you can apply online, at a physical branch, or call  1-888-842-6328. Online application is fast and takes around 10 minutes to complete.

Can children become members of the Navy Federal Credit Union?

If you have an account with the credit union, you can sign up a minor who may be your child or your grandchild online. You must first log into your account to proceed with the signup process. Minor applications are for children between 13-17 years of age. Students between 14 and 24 years are also eligible for the minor membership account.

The minor membership account allows you to start saving for your child’s or grandchild’s financial goals after discussing how you will meet the objectives. The credit union account helps you to teach them how to handle money wisely.

When children start learning money management skills while young, they grow with such discipline to become responsible in the future. You can visit the Minor Membership Account page to begin the application process.

What is the Navy Federal Credit Union Routing number?

The routing number for the Navy Federal Credit Union is 256074974. It is easy to get since you do not have to sign in to your account either since you can find it on their website header. You can give your employer the routing and account number for direct deposits of your salary. When repaying your personal loan, you can also set up a direct deposit by using an account from a different financial institution.

Bottom line

Navy Federal Credit Union offers various kinds of personal loans such as personal expenses loans, home improvement loans, debt consolidation loans, etc. Some people hold the wrong perception that the credit union charges high interest rates, it is difficult to apply for a loan, and that all loan applicants do not undergo a credit check. Navy Federal Credit Union operates in similar ways to other credit unions. You can apply for an account online, at a physical branch, or via phone call. 

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