How to Get a Secured Loan from Navy Federal

A secured loan is a type of loan where you offer an asset as collateral to the lender, reducing the risk for them and potentially getting better terms. Navy Federal Credit Union offers secured loans to help members who want to borrow money but may have limited credit history or need to establish a credit profile. Here’s a step-by-step guide to securing a loan from Navy Federal:

1. Understand What a Secured Loan Is
A secured loan requires collateral, which is an asset you pledge to the lender to secure the loan. If you fail to repay the loan, the lender can claim the collateral to recover their losses. Common types of secured loans include auto loans, home equity loans, and certificate-secured loans.

2. Check Your Eligibility
Before applying for a secured loan, ensure you meet Navy Federal’s eligibility requirements. Generally, you need to be a member of Navy Federal Credit Union, which often means being a current or former member of the military, a family member of a service member, or a Department of Defense employee. You’ll also need to provide proof of income and have a valid ID.

3. Choose Your Collateral
The type of collateral you use can affect your loan terms. Navy Federal accepts various forms of collateral for secured loans, including savings accounts, certificates of deposit (CDs), and even vehicles or other personal assets. Decide what you’re comfortable pledging and ensure it meets the lender’s requirements.

4. Gather Required Documents
You’ll need to provide several documents when applying for a secured loan. These typically include:

• Proof of income (pay stubs, tax returns, etc.)
• Proof of identity (driver’s license, passport)
• Proof of residence (utility bills, lease agreements)
• Information about the collateral (account statements, vehicle title)

5. Apply for the Loan
You can apply for a secured loan online through Navy Federal’s website, over the phone, or in person at a branch. Fill out the loan application form, providing all necessary information about your collateral and financial situation. Be prepared to answer questions about your income, expenses, and the purpose of the loan.

6. Review the Terms
Once your application is processed, Navy Federal will provide you with a loan offer outlining the terms, including the interest rate, repayment period, and any fees. Review these terms carefully to ensure they meet your needs. Secured loans often have lower interest rates compared to unsecured loans due to the reduced risk for the lender.

7. Finalize the Loan Agreement
If you agree to the terms, sign the loan agreement. Navy Federal will then proceed with disbursing the funds. If your loan is backed by a CD or savings account, the funds might be held in that account until the loan is repaid.

8. Repay the Loan
Make timely payments according to the agreed-upon schedule. Keeping up with your payments will help build your credit history and ensure you don’t lose your collateral. Navy Federal typically offers various payment options, including automatic payments, online payments, and in-branch payments.

9. Monitor Your Loan
Stay on top of your loan account to track your balance, payment due dates, and any potential issues. Navy Federal provides online account management tools to help you keep track of your loan status and make payments easily.

10. Contact Customer Service if Needed
If you encounter any difficulties or have questions about your loan, don’t hesitate to reach out to Navy Federal’s customer service. They can provide assistance and guidance to help you manage your loan effectively.

By following these steps, you can secure a loan from Navy Federal Credit Union, benefit from potentially lower interest rates, and build your credit history with a manageable repayment plan.