2023 Navy Federal Credit Union Auto Loan Review | LendingTree (2023)

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Sarah Brady

Jenn Jones

(Video) Navy Federal Auto Loan Review 2023 | How to Get $50k Navy Federal Car Loan Pre Approval Bad Credit

Pearly Huang

Updated on: November 2nd, 2022

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

Navy Federal Credit Union auto loans at a glance

2023 Navy Federal Credit Union Auto Loan Review | LendingTree (1)New auto loansUsed auto loansRefinance auto loans
Starting rates4.54%4.54%4.54%
Loan terms36-96 months36-96 months36-96 months
Loan amountsNot disclosedNot disclosedMinimum of $5,000

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See refinance rates

There’s a reason Navy Federal Credit Union (NFCU) is by far the largest credit union in the U.S. by assets. It offers some of the most competitive loan rates on the market, features discounts for military members and provides membership benefits like free credit alerts. You don’t have to be in the military to join, though you will need a military connection.

Here’s what you could receive from a Navy Federal auto loan:

  • Military rate discounts: Active-duty, senior enlisted members (E-7 through E-9) can receive a 1% APR discount. All active-duty and retired military members can receive a 0.25% APR discount.
  • Long payment terms: You can choose an auto loan repayment term of up to 85 to 96 months if you borrow a minimum of $30,000.
  • Loans for private purchases: Financing can be used to buy vehicles from both dealerships or private parties.
  • Some details aren’t disclosed: Navy Federal doesn’t disclose some details upfront, including credit score requirements, minimum loan amounts or maximum APRs.
  • Best for military members and families: Navy Federal is a good choice for anyone, but members of the military can receive special discounts.

On this page

  • Navy Federal pros and cons
  • A closer look at Navy Federal auto loans
  • How to get a loan with Navy Federal
  • How Navy Federal auto loans compare
  • Is a Navy Federal loan right for you?
  • Frequently asked questions

Navy Federal pros and cons

Navy Federal Credit Union offers many auto loan perks, but you’ll first need to qualify for membership.


Low starting APR

Preapproval is good for 90 days

Discounts available for active and retired military members

Membership is required

Maximum APR not disclosed

Credit requirement is not disclosed

NFCU auto loans have low starting APRs, and members of the military may be able to get even better deals. Plus, loan preapproval is available within seconds.

The biggest drawback, however, is that NFCU requires you to be a member in order to apply, and membership is limited to people with military affiliations. Consumers in the following groups are eligible:

Active duty, retired service members and veterans

Immediate family members of NFCU members (parents, grandparents, spouses, siblings, children and grandchildren)

Household members of NFCU members

Department of Defense civilians

In order to become a member and maintain membership, you’ll be required to open up a Membership Savings Account and keep a $5 minimum balance.

(Video) 🤔 How To Preapproved For A Navy Federal Car Loan! Credit Hack 2023!!

A closer look at Navy Federal auto loans

Navy Federal car loans are available for new and used cars bought from a dealership or a private seller. Refinancing is also available, as long as you aren’t refinancing an NFCU auto loan.

The credit union doesn’t charge a loan application fee, and you can receive a decision within minutes of submitting your application online.

Some other features to note:

  • Loan preapproval is good for 90 days
  • Your payment due date can’t be changed
  • Co-applicants are allowed
  • Member services are available over the phone 24/7

Flexible loan options

Navy Federal Credit Union offers very flexible loan terms and amounts. Borrowers can get 100% financing and choose a repayment term as long as 96 months (eight years).

Just beware that both of these options make borrowing more expensive in the long run. The more money you borrow and the longer you take to pay it back, the more interest you’ll be charged overall. Plus, if you finance your entire purchase, you risk being upside down on your auto loan.

The lowest Navy Federal auto loan rates are reserved for shorter-term payment periods. For example, the starting APR for a 36-month loan is 3.7%, but that figure jumps to 7.84% if you choose a loan repayment term of 85 months or more.

Military discounts

For members of the military, an NFCU auto loan can be a great deal. That’s because Navy Federal offers several discount programs based on military affiliation. Here’s an overview:

  • Loan discounts for active duty and retired military: Qualified applicants can get a 0.25% APR discount on an auto loan when they apply in person or by phone, and set up direct deposit.
  • Senior Enlisted Reward Program: NFCU offers a 1% rate discount exclusively for Active Duty, National Guard and Reserves E-7 through E-9. Note that it can’t be combined with other discounts.

Car-buying service

Finding the right car in addition to the right loan can be a challenge, so Navy Federal partners with a car-buying service. TrueCar helps you filter and search for the right car, then connects you with dealerships that have that vehicle.

While this limits you to purchasing through dealers, it provides membership pricing so you have less pressure to negotiate. If you ultimately don’t get a Navy Federal auto loan, many other businesses also offer this exact service, including Costco, American Express and AARP.

Additional member benefits

Low APRs and rate discounts aren’t the only reasons to join NFCU. Members get additional benefits that can be useful when buying a car, including:

  • Free CARFAX vehicle history report on the car you want to buy
  • Discounts on car insurance through Liberty Mutual®
  • Discounts through other NFCU partners, like SiriusXM® and Enterprise Rent-A-Car®
  • Free monthly Vantage credit score, TransUnion® credit report and credit alerts
  • A car-buying service to help members of the military purchase vehicles while stationed overseas

How to get a loan with Navy Federal

You can complete an auto loan application with Navy Federal Credit Union in just a few minutes. Applications are accepted online, over the phone at 1-888-842-6328 or at bank branches. NFCU branches are located in 30 U.S. states, the District of Columbia and abroad. Here’s an overview of the process:

  1. Sign in. Log into your NFCU account either online or through the mobile app.
  2. Answer a few questions. Be prepared to provide the following information for yourself and your co-applicant, if you have one:
      • Phone number and email address
      • Housing, employment and income details
      • How much you expect to borrow
      • Length (term) of the loan you want

    If you already know which car you plan to buy, NFCU will ask for certain details about the car as well.

  3. Keep an eye out for communication. If NFCU needs more information to make a loan decision, you’ll receive a follow-up email or text.
  4. Receive the check. If you’re approved, you’ll receive a check at your home address or you can pick it up at a local branch.
  5. Complete the paperwork. You’ll need to sign a small stack of forms with the dealer or private seller to officially buy the car and start the loan.

Once your loan is finalized, your first payment will be due within 30 to 60 days.

How Navy Federal auto loans compare

If you’re looking for reputable credit unions that cater to the military, you have several other options to choose from, including USAA. PenFed also offers special incentives for military members, but unlike NFCU and USAA Bank, anyone can join.

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How Does LendingTree Get Paid?

(Video) Navy Federal Auto Loan Hack (NFCU CREDIT HACK)

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Navy FederalUSAAPenFed
APR4.54% and up4.49%* and up4.89% and up
Terms36-96 months12-84 months36-84 months
AmountNot disclosed$5,000 and up$500-$150,000
Min. Credit ScoreNot disclosedNot disclosedNot disclosed

* Rate includes an autopay discount

Is a Navy Federal loan right for you?

Navy Federal auto loans are great for service members and veterans, since NFCU offers special military discounts. If you don’t have a military affiliation, you’ll need to look elsewhere for an auto loan.

If you are a member of the credit union or you qualify for membership, you should consider NFCU when you shop around for an auto loan. NFCU offers preapproval, so you can get a rate quote and then check to see if any other lender will beat NFCU’s low rates and various perks.

Frequently asked questions

NFCU doesn’t specify the credit score you’ll need to qualify, but Navy Federal car loan rates are lowest for borrowers with high credit scores.

According to Navy Federal, you can have a loan decision within minutes of submitting a complete auto loan application.

You can join Navy Federal Credit Union if you — or a member of your family or household — is a service member or a veteran.

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(Video) How To Get APPROVED For an AUTO LOAN With Navy Federal Credit Union (No Money Down)
(Video) How to Join Navy Federal Credit Union (NON Military OK TOO!)


Is it hard to get auto loan through Navy Federal? ›

Apart from membership, Navy Federal Credit Union doesn't specify any requirements, like minimum credit scores. It does note that you can still get a loan if you have limited credit history — though you may need a co-applicant, depending on the amount you want to borrow.

How long does Navy Fed take to review auto loan? ›

After submitting your application, you'll receive a text* or email letting you know the status of your application. We understand that when shopping for a car, you can't always wait around for a decision. That's why we typically provide auto loan decisions in 5 minutes or less.

What credit score do you need to get an auto loan with Navy Fed? ›

Applicants with a credit score of at least 650 and up to 850 may be eligible for Navy Federal Credit Union Auto Loan. The minimum age to be eligible is 18 or the state minimum, whichever is higher. Navy Federal Credit Union Auto Loan does not have or does not disclose a minimum annual income eligibility requirement.

How long are Navy Federal loans under review? ›

Navy Federal Credit Union may approve you for a personal loan the same day you apply or within 3 - 10 business days. After your application is approved and you accept the offer, it takes 1 business day to receive your funds, which Navy Federal Credit Union will send to you by electronic bank transfer.

What FICO auto score does Navy Federal use? ›

Navy Federal normally uses TransUnion for credit card applications. However, they may pull an inquiry from any of the three major credit bureaus (Equifax, TransUnion, and Experian) when evaluating a credit card application.

Does Navy Federal offer good car loans? ›

The bottom line: Navy Federal offers fantastic starting rates on its auto loans, and it's a good option whether you need a small or large loan. However, you have to qualify for membership to get a loan from Navy Federal. If you aren't an active military member, veteran, or family member, you won't be eligible.

How long does a loan review take? ›

Getting approved for a personal loan generally takes anywhere from one day to one week. As we mentioned above, how long it takes for a personal loan to go through depends on several factors, like your credit score. However, one of the primary factors that will affect your approval time is where you get your loan from.

How long does it take to hear back from Navy Federal? ›

It is different for everyone. The process took about 2 weeks. I had the interview one week, heard something the next week and started working within 2 weeks after I left my other job.

How long does it take to review auto loan? ›

You can compare auto loan interest rates

The preapproval process is streamlined, and most applications are usually processed within 30 minutes. As a result, you can shop around with several lenders and compare offers to find the best loan rate.

What is considered good credit to Navy Federal? ›

The Navy Federal credit card approval requirements include a credit score of at least 700, in most cases; this is considered “good” credit. Other Navy Federal credit cards require a credit score of 750, i.e. excellent credit. Ultimately, Navy Federal also offers options for people with bad credit.

What is a good Navy Federal internal credit score? ›

Lenders decide their own credit score requirements. However, scores under 580 are generally considered to be poor, while “good credit” is usually anything over 670. A score over 800 is excellent.

What credit limit does Navy Federal give? ›

The Navy Federal Platinum Credit Card credit limit is between $500 and $50,000. Everyone who gets approved for the Navy Federal Platinum Credit Card is guaranteed a credit limit of at least $500, but the higher an applicant's credit score and income are, the higher the starting credit limit is likely to be.

What does it mean when a loan is under review? ›

This means a segment of the financial institution's loan portfolio is inspected to discover any credit weaknesses that may have arisen. Within the commercial loan category, larger loans usually receive the most scrutiny, since the bank will be impacted more if one of these loans default.

How long is final review loan? ›

Final Approval & Closing Disclosure Issued: Approximately 5 Days, Including a Mandatory 3 Day Cooling Off Period. How long does it take to get a Closing Disclosure (CD) in a home loan? Your appraisal and any loan conditions will go back through underwriting for a review and final sign off.

How do I know if Navy Federal approved my loan? ›

Over the phone: You can check the status of your Navy Federal Credit Union loan by calling 888-842-6328 and speaking to a representative. In person: You can speak directly to a customer service representative about the status of your loan application by going into a Navy Federal Credit Union branch.

What is an excellent FICO auto score? ›

The FICO® Score ranges from 300 to 850 and is broken down into five tiers, or bands: Exceptional: 800-850. Very good: 740-799. Good: 670-739.

What FICO do dealerships use? ›

Most car dealerships use the FICO Score 8 scale to determine your eligibility for a loan. The FICO score is the most widely used because it is considered to be the most accurate assessment of your credit standing. It takes the scores of all three major credit bureaus to create a FICO score.

What is the minimum credit score to buy a car without a cosigner? ›

In general, you'll need a credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required to finance a car loan varies by lender. If your credit score falls into the subprime category, you may need to look for a bad credit car loan.

Which company is best for car loan? ›

Best Car Loan Rates of 2023
  • Best Overall: PenFed Credit Union.
  • Best Online Auto Loan: LightStream.
  • Best Bank for Auto Loans: Bank of America.
  • Best Credit Union for Auto Loans: Consumers Credit Union.
  • Best for Used Cars: Chase Auto.
  • Best for Bad Credit: myAutoloan.
  • Best for Refinance: AUTOPAY.
  • Best for Fair Credit: Carvana.

What's so special about Navy Federal Credit Union? ›

Pros Explained. Competitive rates on certificates – There are four certificate options available through Navy Federal, and many of them offer better rates than found at most national banks. No monthly fees on most savings and checking accounts – Most deposit accounts through Navy Federal have no monthly maintenance fee ...

Will Navy Federal lower my interest rate? ›

However, effective April 1, 2022, Navy Federal is offering a lower maximum interest rate of 4% to eligible member accounts. The following individuals are eligible for protection under SCRA: All branches of the military (Army, Marine Corps, Navy, Air Force, Space Force and Coast Guard) Reservists called to active duty.

How long does it take for lender to review documents? ›

You can apply for a Lendly loan on desktop or mobile within five to 10 minutes. You could get a decision on your application within 24 hours, and funds as soon as the next business day once your information is confirmed.

How often do loans not get approved? ›

You may be wondering how often underwriters denies loans? According to the mortgage data firm HSH.com, about 8% of mortgage applications are denied, though denial rates vary by location and loan type. For example, FHA loans have different requirements that may make getting the loan easier than other loan types.

How long do you have to bank with Navy Federal to get a loan? ›

3 - 11 business days

Does Navy Federal run a background check? ›

Navy Federal does background checks. The recruiting process can take a while depending on when they have training classes coming up.

Does Navy Federal investigate? ›

We'll investigate your fraud claim on your behalf and issue you a provisional credit. Further information may be gathered as we investigate. You'll receive a final letter stating the outcome of the investigation and closing of the case.

Can a car loan be denied after approval? ›

While it is rare, a car loan can be denied after you thought it was already approved.

Does pre-approval mean you will get the car loan? ›

Pre-approval is a conditional approval given to you from a lender to finance the purchase of a car. For example, if you're pre-qualified or pre-approved, you may see estimated financing terms, including the financing amount or range, and/or APR.

How long does it take an underwriter to approve an auto loan? ›

Though the length of the process can vary depending on your particular situation, it can last for as little as two to three days. The process could last longer, though, because it may take multiple days or several weeks for a lender to review your financial records and documents and render a decision.

Does everyone get approved for Navy Federal? ›

Active Duty, Retired & Veterans. Servicemembers in all branches of the armed forces are eligible for membership. This category includes: Active Duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard and Space Force.

Does Navy Federal give instant approval? ›

No, Navy Federal Credit Union does not give instant approval, but applicants could be approved within Same day.

What is the 91 3 rule with Navy Federal? ›

line of credit. so what this means. is that you are going to wait 91 days and. three full statement cycles before you decide. to ask either for a credit limit increase. or for a new line of credit all together. to maximize the amount of funding that you get.

How often does Navy Federal increase credit limit? ›

We generally grant credit line increases on an existing credit card account no more than once every six months. Your credit report shows you've paid one or more creditors late. Based on information provided in your application, your current credit line is appropriate given your stated income.

What tier is a 670 credit score? ›

Lenders generally view those with credit scores of 670 and up as acceptable or lower-risk borrowers. Individuals in this category are often considered “subprime” borrowers. Lenders may consider them higher-risk, and they may have trouble qualifying for new credit.

How to get a high credit limit with Navy Federal? ›

How to Get a Navy Federal Credit Limit Increase
  1. Online: To request a Navy Federal credit limit increase by logging in to your online account.
  2. Via secure message: You can also get a credit limit increase by sending a secure message through online banking.
  3. Over the phone: Call customer service at (888) 842-6328.

How big can a Navy Federal loan be? ›

At Navy Federal, members can request a personal loan of $250 to $50,000, with an APR that starts at 7.49% for a loan term of up to 36 months, 14.79% for 37 to 60 months and 15.29% for 61 to 180 months. The maximum APR for all loan terms is 18%.

Does Navy Federal do a hard pull for credit? ›

Navy Federal does not carry out a hard credit pull when you apply for membership. However, you may expect a hard pull if you apply for any form of credit, be it a credit card, a personal loan, an auto loan or a mortgage.

Is it OK to go under debt review? ›

5 Reasons why you SHOULD GO under debt review

Debt review protects you from losing your property and assets. Your Debt Counsellor will deal with all your creditors, you no longer have to avoid their phone calls. You get a clearance certificate and a clean slate at the end of it.

Is Debt Review a good thing? ›

Though, in the long run, this is actually a very good thing, as it prevents you from racking up more debt and helps you become debt free. If you are over-indebted and cannot afford your monthly repayments, you have only to benefit from opting to undergo debt review.

Can I get credit while under debt review? ›

According to the NCA, the consumer under debt review cannot enter into any new credit agreements while under debt review. Any credit provider who extends credit to a consumer flagged as under debt review is deemed to be reckless lending.

How long does it take to review loan application? ›

Almost every online lender, as well as most banks, can fund personal loans within five to seven business days. And in some cases, lenders may even offer same-day funding.

Who makes the final loan approval decision? ›

The underwriter will ensure your financial profile matches your lender's qualification guidelines and loan criteria. Then, the underwriter will make the final decision to approve or deny your loan application.

How long does underwriting take for final review? ›

How long does underwriting take? The underwriting process typically takes between three to six weeks. In many cases, a closing date for your loan and home purchase will be set based on how long the lender expects the mortgage underwriting process to take.

How long does it take Navy Federal to approve a car loan? ›

After submitting your application, you'll receive a text* or email letting you know the status of your application. We understand that when shopping for a car, you can't always wait around for a decision. That's why we typically provide auto loan decisions in 5 minutes or less.

Who qualifies for Navy Federal auto loan lending? ›

Membership required: Auto loans are available only to those who qualify for Navy Federal membership: active duty service members, immediate family members, veterans and Department of Defense employees. To become a member of Navy Federal, you must also maintain a Navy Federal savings account with at least a $5 balance.

Does Navy Federal verify income? ›

Yes, Navy Federal Credit Union will verify your income when you apply for a personal loan.

What does Navy Federal consider a new car? ›

New Vehicles: 2022, 2023 and 2024 model years with 7,499 miles or less. Minimum loan amount is $30,000 for terms of 85-96 months. Late Model Used Vehicles: 2022, 2023 and 2024 model years with 7,500-30,000 miles. Used Vehicles: 2021 and older model years or any model year with over 30,000 miles.

What credit score is needed for a bank auto loan? ›

In general, you'll need a credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required to finance a car loan varies by lender. If your credit score falls into the subprime category, you may need to look for a bad credit car loan.

What score do I need to get a loan from Navy Federal? ›

A personal loan from Navy Federal is exclusive to Navy Federal Credit Union (NFCU) members who want to get quick cash reasons such as funding big purchases, home improvement and debt consolidation. Since it uses a membership-based structure, it does not have a minimum credit score requirement.

Do pre approvals hurt credit? ›

Inquiries for pre-approved offers do not affect your credit score unless you follow through and apply for the credit. If you read the fine print on the offer, you'll find it's not really "pre-approved." Anyone who receives an offer still must fill out an application before being granted credit.

Does Navy Federal accept everyone? ›

Navy Federal Credit Union (NFCU) provides membership to people from all branches of the armed forces, veterans, the Department of Defense (DoD) employees and contractors, and these individuals' immediate family members.

Will auto loan rates go down in 2023? ›

Auto loan interest rates are expected to remain high due to moves made by the Fed and vehicle prices potentially remaining high. Five-year new car loans are predicted to reach 6.9 percent and four-year used car loans to hit 7.75 percent over the coming year.

What is a good credit score to buy a car? ›

What Is the Minimum Score Needed to Buy a Car? In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.

What is a good interest rate for a car for 72 months? ›

An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.

How much is a 40k car payment? ›

If you take a car loan of $40000 at an interest rate of 4.12% for a loan term of 72 months, then using an auto loan calculator, you can find that your monthly payment should be $628. When the loan term changes to 60 months, the monthly payment on a $40000 car loan will be $738.83.

Can I get a car with a 500 credit score? ›

And, yes, if you are in that 500–600 credit score range, obtaining the financing to buy a car is doable. Even a small percentage of individuals with deep subprime credit scores – 500 or below – obtained auto financing in 2021.

What APR is too high for a car? ›

Bad: 300-629. Fair: 630-689. Good: 690-719. Excellent: 720-850.


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