USAA Personal Loan Review: Great for Military Service Members, Veterans, and Their Family Members

A USAA Personal Loan is specifically geared toward military service members, veterans, and their family members. USAA was founded in 1922 and currently has 13 million members. This USAA Personal Loan review will outline how USAA compares to other banks, and help determine if it is the best personal loan for you.

This personal loan is a good fit for: Eligible members who need a personal loan quickly up to $100,000 without application or early repayment fees and also want to take advantage of USAA’s other financial products and services.

Top perks

No application or prepayment fees: USAA does not charge personal loan application fees or early prepayment fees. Some banks charge loan origination fees that typically run between 1% and 8%. No prepayment fees means borrowers can pay off their loan faster at any time without being penalized.

Interest rate discount for automatic payment: Borrowers who enroll in autopay will receive a 0.25% discount on their interest rate.

Flexible loan options: USAA offers borrowers a maximum amount as high as $100,000 and repayment terms as long as 84 months. You can also add a co-borrower to a personal loan. If you have bad credit, adding a co-borrower with a better credit score can help you qualify and potentially get a better interest rate. You can find a loan option that will fit your budget and needs.

Get funds quickly: The online application process takes a few minutes and if approved, borrowers can receive their funds as soon as 24 hours after closing.

Wide range of financial products and services: USAA is a one-stop shop for financial products, ranging from banking to insurance and personal loans. If you are looking for a bank that has all the features you need in one place, then USAA is a good fit.?

Customer service: USAA is known for its high customer service ratings. According to the 2023 J.D. Power U.S. Consumer Financing Satisfaction Study, USAA is ranked No. 2, with a score of 832 out of 1000. The industry average is 744.

What could be improved

Only military members, veterans, and family members qualify: Eligibility for a USAA Personal Loan is limited to only:

• Those on active duty, National Guard members, or Reservists
• Veterans who served honorably
• Cadets or midshipmen
• Spouses and children of USAA members

Longer payment terms require higher personal loan amounts: Loan repayment terms range from 12 months to 84 months. The length of the term depends on the amount borrowed. Loans that are longer than 60 months (five years) must meet higher credit score requirements.

• A 12- to 36-month term requires a personal loan of $1,000 or greater
• A 48-month term requires a personal loan of $5,000 or greater
• A 60-month term requires a personal loan of $10,000 or greater
• A 72-month term requires a personal loan of $15,000 or greater
• A 84-month term requires a personal loan of $20,000 or greater

Cannot be used for higher education: USAA places certain restrictions on how the personal loan can be used. A USAA Personal Loan can't be used to cover higher education expenses.

No prequalification for a loan: Borrowers are unable to check to see what they would prequalify for without applying for a loan. This results in a hard credit score inquiry, which can lower your score. The website only offers a loan calculator. Make sure you have shopped around and want to get a USAA Personal Loan before applying. Lowering your credit score just to check to see what your rate may be is a mistake when taking out a loan.

USAA does not disclose on its website all the qualifications needed to qualify for a loan. However, the basic requirements are:

• Need to be a USAA member
• Have a bank account with USAA
• Like other financial institutions, borrowers will need to meet certain credit score and income requirements to qualify for the best terms

Application process

USAA has an easy personal loan application process:

• Members fill out an application online
• If approved, members will receive their interest rate immediately
• Borrowers will choose the terms of their loan
• Borrowers will receive their funds in their USAA bank account as soon as 24 hours after loan closing

Before taking out a loan, it is important to do your research and shop around to find the best rate. Here are some other financial institutions to consider.

• Navy Federal offers loans as low as $250 and with lower rates than USAA. However, the maximum loan amount is $50,000, compared to USAA’s $100,000.
• SoFi Personal Loans offer amounts as high as $100,000 with competitive rates and same-day funding. However, the minimum loan amount is $5,000 and you need a high credit score to qualify for a personal loan.

• You are a military service member, veteran, or family member and are eligible for USAA membership
• You already use USAA's other products and want to keep all of your financial accounts in one place
• You want to receive funding quickly
• You need to borrow up to $100,000