Navy Federal have they lost their mind?

[Klineact]

Applied for an NFCU personal loan today. $22K for 36 months is what I asked for. I can make the $700 or so payment without issue. The rates listed on their site are 8.99- 18%.  I just got approved for the Flagship card a few days ago at their lowerst APR. My Fico 8 i sa 790 and my Vantage score is a 788 on TU. Dont know Fico 9.

IN any event the loan gets approved and they offer me 18% interest! (I have an $800 mortgage payment, $200 loan payment and $3K total credit card debt. thats it) I mean WHY with my score, and admittedly I have excellent credit, not one bad thing to speak of, my low debt, decent income and my 5 year history with this bank warrant their absolute worst interest rate on their shortest loan term? Are they high? I called and tried to speak with them but they couldnt give me any info except I should cjeck my credit report (I said I do every day its perfect) that is their algorithm and i got the correct rate. I am pulling my money out of my savings there and switching it to Penfed and I wont be using any of their products anymore as I have plenty others. Perhaps had I been able to get some kind of rational explanation other than thats our algorithm I might feel differently but their staff was rude, had no interest in looking into this insanity and I am pretty pissed about it. 

[GZG]

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@Klineact wrote:

Applied for an NFCU personal loan today. $22K for 36 months is what I asked for. I can make the $700 or so payment without issue. The rates listed on their site are 8.99- 18%.  I just got approved for the Flagship card a few days ago at their lowerst APR. My Fico 8 i sa 790 and my Vantage score is a 788 on TU. Dont know Fico 9.

IN any event the loan gets approved and they offer me 18% interest! (I have an $800 mortgage payment, $200 loan payment and $3K total credit card debt. thats it) I mean WHY with my score, and admittedly I have excellent credit, not one bad thing to speak of, my low debt, decent income and my 5 year history with this bank warrant their absolute worst interest rate on their shortest loan term? Are they high? I called and tried to speak with them but they couldnt give me any info except I should cjeck my credit report (I said I do every day its perfect) that is their algorithm and i got the correct rate. I am pulling my money out of my savings there and switching it to Penfed and I wont be using any of their products anymore as I have plenty others. Perhaps had I been able to get some kind of rational explanation other than thats our algorithm I might feel differently but their staff was rude, had no interest in looking into this insanity and I am pretty pissed about it. 

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I imagine just having been approved for the card caused the high APR and that spooked them, I don't feel like navy goes out of their way to be competetive when it comes to loan interest rates based on my experience

I also imagine their personal loans are risky for them baed on the 37-60 month APR numbers 

consider moving your money to a HYSA where you can earn 5% at least if you weren't already holding it in a CD or something

[Klineact]

right but a 36 month term shouldnt spook them particularly bc I have a platinum card with a 26 K limit ive had for over 4 years and I have paid off balances way more than the loan payment monthly. I have a perfect history with them... Makes zero sense. I remember I applied for a morgage and they quoted me 10% (lol) in early 2023 when i ended up at 5.125 with rocket. They are a mess. I wouldnt ever look for any kind of loans from them ever again. Not competitive and some of their staff are quite unhelpful and rude even. 

[Slabenstein]

I believe NFCU bases their rates on an internal score, rather than one of the FICO scores directly, so a good FICO doesn't necessarily entail a good rate with them.  It's to be expected that their reps wouldn't share with you what determines their internal score, since it's proprietary.  If velocity of applications is part of that score, then, as @GZG suggest, the credit card just opened with them could be part of why the rate they offered was higher than you were expecting.

[GZG]

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@Klineact wrote:

right but a 36 month term shouldnt spook them particularly bc I have a platinum card with a 26 K limit ive had for over 4 years and I have paid off balances way more than the loan payment monthly. I have a perfect history with them... Makes zero sense. I remember I applied for a morgage and they quoted me 10% (lol) in early 2023 when i ended up at 5.125 with rocket. They are a mess. I wouldnt ever look for any kind of loans from them ever again. Not competitive and some of their staff are quite unhelpful and rude even. 

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I wonder if it's as simple as 'inquiry in last 3 months = high apr' or 'near maximum unsecured limit = high apr' 

why would navy bother offering an 18% PL when you have an 11.24% Platinum, guess we'll never know

[CreditCuriosity]

Sorry about your experience.  They have always been very professional to me and many others each time I have had to speak to them on the phone or in the branch and they bend over backwards for some of my requests.  Have had several car loans with them at their lowest APR, etc.  also have 80k CC with them and CLOC, etc and only keep a few hundred in checking/savings with them.   Many things go into the rate they offer.  Credit score, income, DTI other loans and CC balances, credit age, etc.  One thing that is hard to do is try to react accordingly when emotions are involved and you didn't get the outcome you were expecting and I have been at fault for this as well in the past with other lenders.  They are very good at some things and maybe not so good with others such as their mortgage rates aren't competitive. ** although if you can show them a rate with another lender they will match it after the fact which is great customer service if ones profile meets their criteria.  Something got you the higher rate.  

Check another lender for a personal loan such as lightstream , etc if you have excellent credit and DTI is in good shape and you will be able to get a 6-8 rate depending on nature of loan whether debt consolidation or home improvement etc will determine rates as well.

[cashorcharge]

Completed agree with @CreditCuriosity 

I would add that PenFed's lending is not as aggressive or as competitive for CC, Mortgage and Auto Loan rates.

Not sure why your rate for this loan is so high...though to other's points...perhaps the recent approval for their CC was a warning and yes, they do have an internal score.  Unfortunately, you don't typically get to see that unless you're flat our denied.  In your case, you won't get to see it with an approval, even if you chose to not follow through.

[tcbofade]

NFCU has been wonderful to us on many occasions.

Sometimes their rates ARE the best, and sometimes they are not.

I've also got $80k worth of credit cards with them, and have had car loans and a Home Equity loan with them in the past.

Last vehicle purchase, they approved me at 3.9%....when Capital One beat them, I financed with Capital One.

That is why I keep open, healthy relationships with multiple lenders.

Sorry that you got quoted a rate you didn't like, and I would have felt the same... but I'll keep NFCU around as they've been very good to me and mine.

Good luck to you!