Monthly payments can be a major burden if you have high-interest debt from other financial institutions, such as personal loans and credit cards. An easy and effective way to simplify repayment and make repayment easier is with a debt consolidation loan from the Navy Federal Credit Union.

Navy Federal debt consolidation loans can help military members and their families replace their high-interest debts with a single loan at a lower rate. This can make your loan payments more manageable and allow you to save on interest charges. 

Read on to learn more about Navy Federal debt consolidation, including eligibility requirements, interest rates, and loan amounts.

If you’re an existing member of Navy Federal Credit Union, you may be able to benefit from great perks, such as lower interest rates, when you apply for a personal loan to consolidate your debts.

Here are the major benefits you can expect when you apply for a Navy Federal debt consolidation loan:

  • The interest rates are under 18%
  • No loan origination fee
  • Same-day funding, in most cases
  • Option to apply with a co-applicant
  • Debt consolidation will streamline your payments
  • You may be able to get debt-free sooner

“Taking out a consolidation loan through a credit union is always a better option because the interest rates are more favorable,” shares Teresa Dodson, a financial expert and the founder of Greenbacks Consulting. 

Navy Federal debt consolidation works by replacing your existing debts with one single personal loan. You can use the loan proceeds from your new debt consolidation loan to pay off some (or perhaps all) of your higher-interest existing debts, leaving you with one single payment each month, ideally with a much lower interest rate as well. 

If you’re making multiple debt payments each month, this method of “refinancing” your current debt to a lower overall interest rate can make repayment simpler and easier to manage. Veteran debt relief programs such as consolidation loans offer a way to streamline your payments and potentially lower your interest rates. With the lower interest rate, if you pay off your consolidation loan over the same time period as you would have done with your existing debts, you will save interest in the process. 

Navy Federal also offers other loan options, such as home improvement loans, pledge loans, personal expense loans, car loans, and CD or savings account-secured loans,  most of which can also be used to consolidate debts.


You'll need to be a member to qualify for a Navy Federal Credit Union personal loan to consolidate your debts. Membership is available to:

  • Active-duty service members
  • Retired service members
  • Veterans looking to consolidate debt
  • Department of Defense civilian personnel
  • Any and all immediate family members of the above, including mothers, fathers, brothers, sisters, sons, daughters, grandparents, grandchildren, as well as any immediate step-family of the same kind.

While Navy Federal doesn’t specify a minimum credit score requirement, it will still check at least one of your three major credit reports to determine your eligibility. You’ll also be required to submit some basic ID and financial documents with your applications, such as your Social Security number, proof of address, identification proof, income tax returns, bank accounts, and/or pay stubs.

Brad Reichert, a financial expert and the founder and managing director of Reichert Asset Management LLC, offers this advice about qualifying for a Navy Fed loan: “If you qualify for a debt consolidation loan amount that is not quite large enough to cover all your loans, credit cards, and outstanding bills, it is best to use the funds from the new loan to pay off the loans or debts with the highest interest rates and/or the highest penalties on future payments,” Reichert explains. 

If you have a lower credit score, you can apply with a co-applicant to boost your chances of approval.

Interest rates

Navy Federal debt consolidation loans come with a tiered interest rate structure. A tiered interest rate structure sets the APR of your loan based on the length of the loan’s term and your credit profile.  For loans with terms up to 36 months, the annual percentage rate (APR) is 8.99%- 18%. If your repayment term is 37 to 60 months, the interest rate is 15.29%- 18%.

Personal loan interest rates across all lenders usually range from 6% to 36%, while the current average credit card interest rate is 27.81%. With interest rates capped at 18% at Navy Federal, you’ll be able to save a considerable amount of money in interest. We also recommend comparing loan offers from other lenders and considering balance transfers to get the lowest rate.

“By consolidating your highest-interest debt with as much of the new, lower-interest funds you have available to use, you’re saving as much interest as possible in the long run,” adds Reichert. 

While there’s no loan origination fee to obtain the loan, you’ll have to pay a late fee if you fail to make payments on time.

Payment Terms

Navy Federal offers loan terms of up to 60 months to repay your debt consolidation loan. Longer terms come with higher interest rates, as we’ve listed in the above section. Shorter terms may offer better rates, but your monthly installment payments may be higher.

Be sure to use the Navy Federal loan calculator to estimate your monthly payments before you apply for a loan. This will allow you to determine if you can comfortably repay the loan.

Loan Amount

Navy Federal’s loan limits on unsecured personal loans like these are typically $250 to $50,000, which provides you plenty of flexibility when it comes to borrowing. The amount you qualify for may depend on a number of factors, such as your income and creditworthiness.

While you can’t prequalify for the loan, you’ll certainly receive details about how much you qualify for and the interest rate once you submit the loan application.  At that point, you are free to accept or decline the loan terms they offer you.

There’s no online application option for the Navy Federal debt consolidation loans. You’ll need to call 1-888-842-6328 or visit a local branch to apply.

Here’s a look at the application process:

  1. Visit your nearest branch and fill out the loan application.
  2. Provide relevant documents, such as your identification proof, employment and income documents, proof of residence, NFCU Access Number, as well as your Social Security number or Individual Tax ID number (your ITIN).
  3. If you’re applying with a co-applicant, you’ll have to submit the same documents for them.
  4. Submit the documents and wait for a decision.
  5. Once your loan is approved, you’ll have to sign a loan contract.
  6. Loaned funds will usually be deposited into your account within one business day.

A Navy Federal debt consolidation may be right for you if you’re already a credit union member and have high-interest personal loans or credit card debt with one or more other lenders. We also recommend that you take a look at your budget and make a list of your current debts with outstanding amounts and interest rates to make an informed decision as to whether a debt consolidation loan is right for your personal situation.

Navy Federal Credit Union consistently receives good customer reviews on TrustPilot for its financial products, including auto loans, student loans, and personal loans. It’s also the largest credit union in the country and has a great industry reputation, so it’s likely a good idea to seriously consider a debt consolidation loan if it may help you pay off your debts sooner.