How to Get a Navy Federal Personal Loan With Bad Credit

(April 2024)

How to Get a Navy Federal Personal Loan With Bad Credit

In This Article

Do you have poor personal credit but need to finance an unexpected event or remodel your home, just to name two examples? Even though you have bad credit, you can get a Navy Federal personal loan to meet your needs. There are certain dos around achieving this goal, and this article will reveal them to you.

To get a Navy Federal personal loan with bad credit, follow this step-by-step guide:

  • Understand Navy Federal Personal Loans
  • Work on Your FICO Credit Score
  • Boost Your Navy Federal Internal Score
  • Gather Your Documents
  • Contact a Navy Federal Customer Rep
  • Consider Other Loan Options

Now, let’s consider these steps!

1. Understand Navy Federal Personal Loans

First, understand Navy Federal loan options to see which option suits borrowers with bad credit. You can use a Navy Federal personal loan to cover unexpected expenses, consolidate debts, improve your home or take a course to advance your career. As a borrower with bad credit, you can apply for one of these five basic Navy Federal personal loan options:

Personal Expense Loan

Navy Federal personal expense loans are best for dealing with emergencies involving huge amounts.

Home Improvement Loan

Navy Federal provides the home improvement loan specifically to borrowers who have home improvement or remodeling goals or repair projects.

Debt Consolidation Loan

A Navy Federal debt consolidation loan helps you offset existing high-interest debt with a more favorable interest rate.

Savings Secured Loan

A Navy Federal savings secured loan allows you to get financing at a lower rate without touching your savings. Besides helping you build credit, this personal loan allows you to earn dividends.

Certificate Secured Loan

A Navy Federal certificate secured loan lets you borrow 100% of your certificate’s principal balance for various terms at 2.00% APR above the certificate’s rate.

Depending on your needs, choose the type of Navy Federal personal loan to apply for. Check each loan’s terms, APR and minimum amount to understand the full implications of taking the loan.

2. Work on Your FICO Credit Score

Want to get a Navy Federal personal loan with poor credit? Work on your credit score first and try to increase it gradually. This process could take some time, though. But you’d better start sooner rather than later. Use these tips to improve your credit score:

Pay Your Bills on Time

Pay your bills on time—all the time. This is an important tip if you’re serious about improving your credit score. Late or no payments reflect on your credit report poorly and negatively impact your credit score. Paying your bills on time on all debts helps you build a positive payment history that favorably impacts your FICO score.

Become an Authorized User

If you have a friend or family member with a credit card account and stellar credit, ask him or her to add you as an authorized user. Adding this account to your credit report boosts your credit utilization. To get the best effect, ensure the account reports to the three major credit bureaus: Equifax, Experian and TransUnion.

Keep an Eye on Your Credit Report

Know what’s going on with your FICO score by keeping an eye on all three credit reports. One mistake on your credit reports has a negative effect on your credit score. So, check your credit report from time to time on to ensure that there are no errors or shortcomings. (Having said that, there are other free score providers, such as Credit Karma, NerdWallet, WalletHub…and Navy Federal itself.)

Dispute Credit Report Errors

Systematically dispute errors on your credit report so you can quickly improve your credit score. Dispute any error you find on your credit report immediately after detecting it—for example, an early payment marked as late or a mix-up with another person’s credit.

3. Boost Your Navy Federal Internal Score

To get a Navy Federal personal loan with bad credit, try to boost your Navy Federal internal score.

“How can I boost my Navy Federal internal score?” you might ask.

Build a Relationship with Navy Federal

Build a solid relationship with the institution. Open different accounts with Navy Federal: money market, checking and savings.

Maintain a clean slate—pay your credit accounts on time, have no overdrafts, and avoid any other derogatory items on your Navy Federal accounts.

Avoid Opening New Revolving Credit Accounts Often

To increase your Navy Federal internal score, don’t open too many credit cards and lines of credit. Having too many new revolving credit accounts makes Navy Federal see you as desperate for credit.

Reduce Credit Inquiries

Avoid too many hard inquiries within a short space of time, as this can dent your credit report. Hard inquiries stay on your credit report for up to 2 years and make you look like a high-risk borrower. If you must apply for multiple types of credit, space the credit applications out. Once you take a new credit, wait for some time before applying for another one.

4. Gather Your Documents

To get a Navy Federal personal loan with bad credit, gather the necessary documents. These include your paystub, employment verification letter, W-2s, 1099s, bank statements and tax returns.

Provide your contact information, including your phone number and email. If you have a co-applicant, provide his or her date of birth, address, phone number, email, income and employer’s name. Also, provide your co-applicant’s phone number, Social Security Number and NFCU Access Number.

5. Contact a Navy Federal Customer Representative

To get a Navy Federal personal loan with bad credit, go to a Navy Federal branch close to you and meet a customer representative to walk you through the loan process. The customer representative will spell out the requirements for you.

If you are not within a physical location of a Navy Federal office, contact a customer representative through their official customer service line. The biggest advantage of contacting a Navy Fed customer service representative is that you get absolute guidance from a trusted source.

6. Consider Other Loan Options

To get a Navy Federal personal loan with bad credit, consider other loan options like auto loan, mortgage or student loan. Some of these loans offer low-interest rates—between 2% and 5%—and you also get a chance to boost your credit score.

Getting a co-signer or co-borrower can also increase your odds of success in taking a loan with bad credit. A co-signer pledges to take financial and legal responsibility for the loan in case the primary borrower fails to make payments. A co-borrower has equal access to the loan funds as the primary borrower—and so, shares the payment responsibility with the primary borrower.

If you’re a member of the Navy Federal, apply for a Navy Federal credit card. To be a member of Navy Federal, you need to be a member of the Armed Forces or the Department of Defense, a veteran, or a relative of any of this category of persons.


To get a Navy Federal personal loan with a poor FICO score, take the right steps. Many people consider getting a Navy Federal personal loan with bad credit impossible. However, if you know the right steps to take, you can increase your chances of getting a Navy Federal personal loan with bad credit.

Understand the various types of Navy Federal personal loans, improve your FICO credit score, boost your Navy Federal internal score, and gather your documents. Further, contact a Navy Federal customer rep and consider other loan options.

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