Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated top personal loan providers
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Providers RatedOur team researched more than two dozen of the country’s most popular personal lenders, including large online companies like SoFi, big banks like Wells Fargo, and peer-to-peer lenders like Upstart.
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Data Points AnalyzedTo create our rating system, we analyzed each personal loan company’s disclosures, licensing documents, marketing materials, sample loan agreements and websites to understand their loan offerings and terms.
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Loan Features TrackedOur team regularly collects data on each company’s loan offerings and terms, such as minimum and maximum loan amounts, origination fees and discounts.
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Professionals ConsultedBefore we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
Our Thoughts on USAA Personal Loans
USAA Bank serves the military community and their family members. In general, you must be one of the following to join:
- Current service member of the U.S. military
- Contracted cadet, midshipman or pre-commissioned officer
- Veteran who was honorably discharged
- Current or former spouse of a USAA member
- Child of a USAA member
While USAA Bank offers impressive interest rates, autopay discounts and no origination or early repayment fees, it’s not for everyone.
The biggest limitation is its exclusivity: Only those with military affiliations can access its services. Another drawback is that USAA doesn’t give borrowers a way to get prequalified for a loan. This means every application leads to a hard inquiry, which can temporarily affect your credit score.
Despite this, if you have military ties and are seeking a reliable lender, USAA is undoubtedly worth considering. If you qualify, you can get a USAA loan amount ranging from $1,000 to $100,000 with quick access to funds.
| Overview of USAA personal loans | |
|---|---|
| Loan amounts | $1,000 to $100,000 |
| Loan terms | 12 to 84 months |
| Origination fees | None |
| Prepayment penalty fees | None |
Pros and Cons of USAA Personal Loans
Every personal loan provider has its advantages and disadvantages, including USAA.
Pros
Offers a 0.25% discount for enrolling in autopay
Allows co-borrowers and joint loan applications
Borrowers typically receive funds within two business days of approval
Various repayment terms to cater to different financial needs
Cons
Loans are exclusive to military-affiliated individuals and their families
No prequalification option — only performs hard credit checks
For debt consolidation, USAA won’t send direct payments to creditors
Who Are USAA Personal Loans Best For?
USAA personal loans are best for current and former members of the military, as well as their families. Low interest rates, a lack of fees and flexible terms make these loans an attractive alternative to higher-interest credit cards for this demographic. Plus, the ease of applying online can be crucial for military families facing unexpected expenses.
If you’re not linked to the military in some way, USAA won’t be a good fit for you.
How To Get a USAA Personal Loan
Getting a personal loan with USAA is a straightforward process. Here’s what you can expect.
Application Process
Applying for a USAA personal loan begins online. During this stage, you’ll set up your USAA membership (if you’re not already a member), share details about the amount you want to borrow and provide information about your income, housing and employer.
You’ll need the following documents:
- Military service details, such as a military ID
- Social Security number
- Proof of income or employment, such as bank statements, income tax returns, W-2 forms, paystubs or 1099 forms if you’re self-employed
- A list of expenses and debts
- Official identification, such as a driver’s license
From start to finish, the application process can be relatively quick, especially if you have all the necessary documents on hand. There are no application fees for USAA.
Approval and Funding
Once you’ve applied, USAA will let you know almost immediately if you’ve been approved. If there are no hiccups with verifying your documentation, you’ll typically get your money within two business days. With USAA, you can take out any loan amount ranging from $1,000 to $100,000.
You can speed up the process by making sure you provide accurate information on your online application and promptly respond to any additional information USAA requests. Your funds can be deposited into a USAA Bank account.
USAA Personal Loans Reviews
When browsing through reviews on sites such as Best Company and Better Business Bureau (BBB), a few themes emerge about USAA. First and foremost, many reviewers love its customer service. Several reviews say USAA has the best service of any bank they’ve been a part of. Reviewers also mention how good USAA’s personal loan rates are, though it’s hard to find reviews about USAA’s personal loans specifically.
Eligibility Requirements for USAA Personal Loans
Understanding the eligibility criteria is vital before applying for a USAA personal loan. The bank generally evaluates the following essential factors.
Credit Score and Financial History
USAA doesn’t have a strict, publicly stated minimum credit score for its personal loans. However, your credit score plays a pivotal role in your application’s outcome. Typically, those with a FICO score of 620 or higher stand a better chance of approval and can secure more favorable interest rates.
Beyond the score itself, USAA will also evaluate your entire financial history, looking at factors like payment consistency, debt-to-income ratio and overall creditworthiness. You can increase your approval odds by maintaining a consistent track record of timely payments and a relatively low debt load. Grab a copy of your credit report to get a full view of your credit history.
Income and Employment
USAA requires applicants to provide details about their income and employment as part of the loan application process. While they don’t specify a minimum income requirement, you’ll need a stable employment history and sufficient income to manage your monthly payments.
If you’re self-employed, you might need to provide additional documentation to prove your earnings. This could include bank statements, 1099 forms and income tax returns.
USAA Personal Loans Usage Rules
For the most part, you have free rein over how you use your USAA personal loan funds. The primary restriction listed on its website states that you can’t use your personal loan to cover college or other higher education expenses.
Outside of this, you’re mostly free to use the loan as you see fit. People commonly use personal loans for consolidating high-interest debts, making home improvements, handling both planned and unplanned expenses or preparing for significant life events, such as having a baby.
As with any loan, being a responsible borrower is key. Only borrow what you need and have a clear plan for repayments, regardless of the loan’s purpose.
USAA Personal Loans Fees and Penalties
Compared to most personal loan providers, USAA has fewer fees and penalties.
Loan Origination Fees
USAA doesn’t charge any origination fees for its personal loans. An origination fee, often a percentage of the loan amount, is charged by some lenders to cover the costs of processing the loan.
Since USAA waives this fee, borrowers can save a significant amount upfront. It’s always wise to factor in such fees when comparing loan offers, but with USAA, this is one less concern.
Early Repayment Penalties
Another advantage of USAA personal loans is that there’s no early repayment penalty. So if you’re in a position to pay off your loan ahead of schedule, you can do so without incurring extra charges.
This can be a huge boon, considering early repayment can save you money on interest in the long run and make your loan more affordable overall. As you shop around for personal loans, be aware of lenders’ stances on early repayments to ensure you have the flexibility you desire.
How USAA Compares to Other Lenders
When it comes to personal loans, various lenders cater to different needs. Here’s how USAA stacks up against some of the best personal loan lenders.
USAA and LightStream both cater to borrowers looking for competitive rates and rapid funding. While USAA specifically targets the military community, including those in the Army and Air Force, LightStream caters to a broader audience.
Annual percentage rates (APRs) at LightStream can often start below 8% for those with excellent credit. In comparison, USAA’s APRs start at 10.19% when you set up automatic payments.
Both lenders provide loans up to $100,000, but LightStream doesn’t exclusively focus on the military demographic, which could expand eligibility options for potential borrowers.
USAA and SoFi are top players in the personal loan arena. While USAA’s primary audience is military members and their families, SoFi appeals to young professionals by providing additional perks, such as unemployment protection.
SoFi is known for its competitive rates and broad loan products, including student loans. Similar to USAA, its loan amounts can reach up to $100,000. However, SoFi tends to lean toward borrowers with higher incomes and strong credit, which might lead to stricter eligibility requirements compared to USAA.
Like USAA, PenFed has military roots. But today, membership is open to anyone — not just military members. Both lenders provide competitive interest rates and no hidden fees. In terms of loan amounts, PenFed provides personal loans from $600 to $50,000, which is half of USAA’s maximum of $100,000. Neither financial institution advertises its minimum credit score requirements online.
The Bottom Line
USAA personal loans offer a tailored solution for the military community, providing low rates and a range of member perks. Its absence of origination fees and early repayment penalties adds to its appeal. But the lender’s exclusivity to those with military affiliations, coupled with the fact that there’s no way to get preapproved, might be limiting for some.
Frequently Asked Questions About USAA Personal Loans
USAA doesn’t specify a strict minimum credit score for its personal loans. However, your credit score is a key factor in determining eligibility and interest rates. Generally, a higher credit score increases your chances of getting approved and securing a better interest rate.
No, it’s not necessarily hard to get a personal loan from USAA, but approval depends on your creditworthiness and financial situation. USAA primarily serves retired and active duty military members and their families, so if you fit this profile and have a decent credit history, your chances might be better.
Yes, when you apply for a personal loan with USAA, it will typically perform a hard credit pull to review your credit history. This hard inquiry might temporarily affect your credit score by a few points. Because of this, be certain about applying before you submit a personal loan application to any lender.
Once you apply for a personal loan with USAA, the approval process is typically quick, often within a day or two. If approved, funds can be disbursed and appear in your account within two business days. However, the exact timing might vary based on individual circ*mstances and application volume.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
Cassidy HortonContributing Writer
Cassidy Horton is a finance writer with over five years of experience. She holds an MBA and a bachelor’s in public relations from Georgia Southern University and has worked with top finance brands like Forbes Advisor, NerdWallet and Consumer Affairs.
Kelly LarsonSenior Editor
Kelly is an editorial leader and collaborator with over 13 years of experience creating and optimizing data-driven, reader-focused digital content. Before joining our team, Kelly was the cross-niche editor and Branded Content Lead at personal finance and fintech site Finder.
