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An In-depth Look at USAA Personal Loans

When it comes to personal loans, credit unions offer a unique blend of features tailored to their members. This article unpacks the specifics of USAA personal loans. From competitive interest rates, diverse loan amounts to member prerequisites, we offer an unbiased perspective to help you understand and navigate the landscape of credit union loans.
Offers: 2
Updated:
02.02.2024
15:38
Best Personal Loan Today 27.02.2024*
Finanso
Personal Loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
2000.00 – 100000.00 $
Rate
i

Effective interest rate on the product

6.34 – 35.89 %
Term
i

Loan term for the financial product

2 months – 72 months
Submit One Loan Application Online!
Submit One Loan Application Online!

Use our quick loan matching system with a free credit check!

Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$1,000-$100,000
Rate
i

Effective interest rate on the product

9.49%-18.51%
Term
i

Loan term for the financial product

12-84 months
CreditFresh
4.8
The application process was a breeze, and I received a response within minutes. This straightforward and prompt procedure proved to be a great help to me during a crucial time of need.
Review
JG Wentworth
4.6
The assistance I received was exceptional. My representative handled my case with care and provided all the necessary information...
Review
OneMain Financial
4.4
The loan application process was straightforward, and the representative I interacted with displayed patience, provided informative answers, and was quite pleasant throughout...
Review
My Funding Choices
4.6
The process was swift and straightforward, which was particularly helpful during a time when, despite my reluctance to seek assistance, I genuinely needed help.
Review
Plain Green Loans
2
The interest rate is shockingly high, and it feels like taking advantage of individuals facing financial challenges when unexpected expenses arise...
Review
Advance America
4.6
I have never encountered any issues with this company. They consistently deliver funds on time, and the repayment process is straightforward...
Review

What are USAA Personal Loans?

USAA presents a range of flexible personal loans tailored to your needs, characterized by their swift funding and hassle-free process. With a seamless online application, borrowers can experience the convenience of securing funds within just one business day post-approval. Eliminating the need for in-person visits to a branch, USAA stands out among its counterparts. This rapid funding capability positions USAA as an ideal choice for unexpected emergencies and endeavors like home renovations, making it a versatile solution for various financial needs.

Furthermore, USAA's commitment to member satisfaction is evident through its user-friendly approach. A USAA bank account simplifies the application process, streamlining the loan experience for existing members. With minimum loan amounts catering to different financial requirements, borrowers can access funds according to their specific needs. Choosing a monthly payment that aligns with your budget enhances the affordability and ease of loan repayment.

Compared to other personal loan companies, USAA's focus on efficient online processes sets it apart, making it a favorable choice for those seeking a modern and convenient lending experience. As a trusted personal loan lender, USAA's reputation is reinforced by positive feedback and personal loan reviews from satisfied customers who have benefitted from its services.

Features

  1. Flexible Loan Amounts. USAA offers a versatile range of loan amounts from $1,000 to $100,000. The specific amount you're eligible for depends on your chosen loan term.

  2. Varied Loan Terms. You can tailor your loan term to align with your financial goals, spanning from 12 to 84 months, which translates to one to seven years of repayment.

  3. Competitive APR. USAA's Annual Percentage Rates (APRs) fall within the range of 9.49% to 18.51%. This rate includes an attractive 0.25% discount for borrowers who opt for autopay.

  4. Zero Origination Fees. USAA stands apart by not imposing any origination or application fees. Unlike many other personal loans that often come with fees ranging from 1% to 8% of the loan amount, USAA offers a fee-free experience.

  5. Late Fee Transparency. Should you miss a payment, USAA charges a late fee equivalent to 5% of the due amount, ensuring clear and straightforward fee structure.

  6. No Prepayment Penalties. USAA enables borrowers to pay off their loans early without incurring any prepayment penalties. This freedom empowers you to manage your loan in a way that suits your financial situation.

  7. Exclusive USAA Perks. As a borrower, you'll gain access to USAA's array of perks, including shopping discounts and special deals. These benefits align with USAA's commitment to supporting veterans and military members.

  8. Autopay Discount. Enrolling in autopay streamlines your repayment process and earns you a 0.25% discount on your APR, enhancing your loan's affordability.

USAA Personal Loan Options

USAA offers a range of attractive personal loan options designed to provide financial flexibility and convenience to its members. With competitive rates starting as low as 9.49% APR and no application or early repayment fees, a USAA unsecured personal loan presents an appealing alternative to using high-interest credit cards. Borrowers can access loan amounts ranging from $1,000 to $100,000 and enjoy flexible repayment terms that span from 12 to 84 months, accommodating various financial needs and situations. The APR is subject to change but will not exceed 18.51%, contingent upon factors such as credit approval, loan amount, and term. Monthly payments are determined based on the approved APR and borrowed amount. Additionally, longer-term loan applications, extending beyond 60 months, require meeting higher credit and risk standards. USAA's Personal Loan Payment Example demonstrates that a 36-month new personal loan at a fixed APR of 10.14% would result in affordable monthly payments of $32.33 per thousand dollars borrowed.

USAA loans can be used for the following purposes:

  1. Managing Debt. Simplify bill management by consolidating your higher-interest loans and credit card debts into manageable loans with USAA. This approach can potentially save you money on interest payments over time.

  2. Home Improvements. When your home requires upgrades or repairs, USAA's personal loans provide a swift solution for funding your remodeling or renovation projects. This option allows you to enhance your living space without delay.

  3. Planned and Unplanned Expenses. USAA's personal loans are versatile enough to assist with both anticipated and unforeseen expenses. Whether you're preparing for a new addition to the family or facing unexpected medical bills, these loans can provide the financial support you need.

Pros and Cons

Pros

Wide Range of Loan Amounts. USAA provides borrowers with a flexible selection of loan amounts, catering to various financial needs and objectives.

Wide Variety of Repayment Term Options. With a diverse range of repayment terms available, borrowers can choose a timeline that best aligns with their financial situation and preferences.

Fast Funding. USAA's personal loans are known for their quick funding process, allowing borrowers to access the funds they need promptly, often within a single business day after approval.

Rate Discount for Autopay. Enrolling in autopay comes with the added benefit of a rate discount, making the loan more affordable over its duration.

Joint Loan Option. USAA offers the option for borrowers to apply for a joint loan, which can be useful for couples or partners seeking to share financial responsibility.

Cons

Exclusive to USAA Members. To access USAA's personal loans, borrowers must be members of USAA, which limits eligibility to those who meet the membership criteria.

No Option to Pre-Qualify with a Soft Credit Check. Unlike some lenders that allow potential borrowers to check their eligibility and terms through a soft credit check, USAA does not offer a pre-qualification process without a formal application.

No Direct Payment to Creditors with Debt Consolidation Loans. If you're using a USAA personal loan for debt consolidation, the lender does not directly pay your creditors, which means you'll need to manage the distribution of funds yourself.

Co-signers Not Permitted. USAA does not allow co-signers on their personal loans, which might limit the borrowing options for those who need a co-signer's support.

How to Apply for a USAA Personal Loan?

Apply For a Loan

  1. Become a USAA Member. If you're not already a USAA member, you must start by becoming one. Visit the USAA website and locate the "Join Now" button. This will initiate the membership application process. Skip to step three if you're already a USAA member.

  2. Complete the Membership Form. To complete the membership form, provide the required information, including your birthdate, contact details, and Social Security number (SSN). If applicable, you'll also need to furnish information about your or your family member's military service. Additionally, you may need to provide a passport or permanent resident card if you're not a U.S. citizen.

  3. Complete the Loan Application Form. Once your membership is approved, complete the loan application form. This comprehensive form will ask for personal details, including your income, employment, and contact details.

  4. Prequalification. Sometimes, you may have the option to prequalify for a rate. This step allows you to gauge the potential terms of your loan before submitting the formal application. However, note that USAA might not offer a prequalification process with a soft credit check.

  5. Submit the Application. After completing the application form, submit it through the designated online platform. Ensure that all the information provided is accurate and up to date.

  6. Await Loan Approval. Once your application is submitted, USAA will review it for approval. This process typically involves evaluating your financial information, credit history, and other relevant factors.

Requirements

  1. Credit Score Requirements. USAA doesn't explicitly disclose its minimum credit score requirement for personal loans. However, having a credit score of at least 670 is generally recommended to increase your chances of approval. While some lenders do offer loans to individuals with lower credit scores, this often results in higher interest rates.
  2. Income Requirements. USAA does not publicly state its specific minimum income requirements for personal loans. It's advisable to get in touch with USAA directly to inquire about income eligibility criteria.
  3. Other Membership Requirements. To apply for a USAA personal loan, you must be a member of USAA. Membership is open to U.S. military members, their spouses, and children of USAA members. Additionally, pre-commissioned officers such as cadets, midshipmen, and officer candidates are eligible for membership.
  4. Co-signers and Co-borrowers. While USAA does not permit co-signers for its personal loans, it allows co-borrowers, enabling joint personal loans. A co-borrower, or joint borrower, differs from a co-signer in that both applicants share responsibility for the loan and are expected to meet the repayment obligations. This arrangement is suitable for applicants who are willing to share the financial commitment.

    Ways to Receive the Money

    USAA typically provides borrowers with the borrowed amount through a direct deposit into the bank account specified during the loan application process. Once your loan is approved and all necessary documentation is completed, the funds are transferred electronically to your provided bank account. This process ensures that you have quick and easy access to the loan funds for your intended use, whether it's for debt consolidation, home improvements, or any other purpose.

    It's important to ensure that you provide accurate and up-to-date bank account information during the application process to avoid any delays in receiving the funds. Additionally, make sure you carefully review the terms of the loan agreement, including the interest rate, repayment schedule, and any associated fees, before accepting the loan.

    How to Pay off a USAA Personal Loan?

    1. Contact USAA. Reach out to USAA's customer service to get accurate and up-to-date information on your remaining loan balance, any outstanding interest, and the payoff amount. Contact details are usually found on their official website or within your loan documentation.

    2. Prepare Funds. Make sure you have the funds available to cover the payoff amount. This might include the remaining principal balance, accrued interest, and applicable fees.

    3. Choose Payment Method. USAA typically provides various payment methods, such as online payments through their website or mobile app, over-the-phone payments, and even mailing a physical check. Choose the method that works best for you.

    4. Make Payment. Initiate the payment for the full payoff amount using the chosen payment method. Ensure that you provide accurate information to avoid any payment processing issues.

    5. Verify Payment. After making the payment, verify that the funds have been successfully debited from your account or received by USAA. Some methods, like online payments, may provide instant confirmation.

    6. Confirm Loan Closure. Once the payment is processed, contact USAA again to confirm that your loan has been fully paid off and closed. They should provide you with documentation indicating that the loan has been satisfied.

    7. Update Records. Make sure to update your own financial records and budgeting tools to reflect that the loan has been paid off. This will help you accurately track your financial situation.

    8. Receive Documents. USAA should provide you with paperwork indicating that your loan has been paid off. Keep this documentation for your records.

    Things to Consider

    1. Membership Requirement. USAA personal loans are available exclusively to USAA members, which includes active military members, veterans, their families, and certain officer candidates. Ensure you meet the membership criteria before applying.

    2. Loan Amounts and Terms. Consider the range of loan amounts and repayment terms that USAA offers. Choose a loan amount that suits your financial needs and a term that aligns with your ability to repay comfortably.

    3. APR and Fees. Pay attention to the Annual Percentage Rate (APR) range and any associated fees. The APR will affect the overall cost of the loan, including interest and fees.

    4. Fast Funding. USAA's fast funding can be advantageous for emergencies or time-sensitive needs, but ensure you understand the terms and costs associated with quick access to funds.

    5. Autopay Discount. Enrolling in autopay can reduce your APR, making the loan more affordable. Consider setting up autopay if you're comfortable with automatic deductions from your bank account.

    6. Co-borrower Option. If necessary, take note of the co-borrower option for joint loans, which allows you to share the responsibility and potentially increase your chances of approval.

    7. Repayment Plan. Understand your repayment plan and how much you'll need to pay each month. Ensure that the monthly payments fit comfortably within your budget.

    8. Customer Support. USAA's customer service can provide important information about eligibility, loan details, and the application process. Don't hesitate to contact them for clarifications.

    9. Loan Closure Process. Familiarize yourself with the steps to pay off the loan when the time comes. Having a clear understanding of the payoff process will help you manage the loan efficiently.

    10. Alternatives. Compare USAA's personal loan terms, rates, and benefits with other lenders to ensure you're getting the best deal that suits your financial situation.

    11. Documentation. Keep all loan-related documentation, such as terms and agreements, for future reference.

    Alternatives

    1. Credit Union Personal Loans. Many credit unions offer personal loans with competitive rates and terms. Credit unions are member-owned financial cooperatives that often prioritize customer service and community involvement. Examples: Navy Federal Credit Union and PenFed Credit Union.

    2. Online Lenders. Online lenders provide a convenient way to access personal loans with various terms and rates. They often have streamlined application processes and quick funding. Companies: SoFi, LendingClub, Prosper.

    3. Bank Personal Loans. Traditional banks also offer personal loans. These loans may come with relationship discounts for existing customers and might be a suitable option if you prefer working with a brick-and-mortar institution. Companies: Wells Fargo, PNC Bank, TD Bank, etc.

    4. Peer-to-Peer (P2P) Lending. P2P lending platforms connect borrowers with individual investors who fund the loans. This can offer unique terms and rates based on the lenders' preferences. Companies: Prosper, Funding Circle, Peerform.

    5. Credit Cards. Depending on your credit limit and the card's terms, using a credit card can provide a revolving line of credit for various expenses. Be mindful of high-interest rates and fees. Companies: Discover, Capital One, American Express.

    6. Home Equity Loans or Lines of Credit (HELOC). If you own a home, you can tap into your home equity through a loan or line of credit. These often have lower interest rates compared to unsecured personal loans. Companies: Wells Fargo, U.S. Bank, TD Bank.

    7. Savings or Certificate of Deposit (CD) Secured Loans. Some banks and credit unions offer loans secured by your own savings account or CD. These loans might have lower interest rates due to the collateral.

    Editorial Opinion

    With the offerings of USAA Federal Savings Bank, individuals find themselves presented with a range of options that bear the potential to provide much-needed financial flexibility. USAA, a well-established financial institution, brings its reputation for quality service to its personal loan products. Through its robust range of services, USAA Bank offers personal loans that cater to a spectrum of needs, from handling unexpected emergency expenses to fulfilling higher education aspirations. The flexible loan terms empower borrowers with the ability to tailor their loan experience to suit their unique circumstances, a testament to USAA's commitment to assisting its eligible members and their families. One notable advantage that distinguishes USAA from other personal loan lenders is the availability of automatic payments, a feature that can help borrowers streamline their monthly financial responsibilities. Additionally, the absence of prepayment penalty fees opens doors for borrowers to manage their loans on their terms, allowing for faster loan repayment without incurring unnecessary costs. It is important to underscore that while USAA offers personal loans, their availability is exclusively for the community of USAA members. This limitation ensures that those seeking financial assistance from USAA have a connection to the institution based on trust and membership. When applying for a personal loan from USAA, the journey begins with navigating through their user-friendly online platform. As with any financial institution, due diligence is exercised in the form of credit checks and verification of financial credentials, ensuring responsible lending practices. To further ensure the protection of all parties involved, USAA adheres to legal regulations such as the Bank Secrecy Act and the Servicemembers Civil Relief Act, safeguarding the interests of both lenders and borrowers. In terms of loan amounts, USAA showcases a range that aligns with diverse needs. This means there's a suitable loan offering, whether it's an unforeseen emergency expense or higher education aspirations. It's noteworthy that, in line with USAA's commitment to responsible lending, loan amounts are offered to eligible members with varying credit scores, catering to those with excellent credit as well as those with fair credit. While the personal loan landscape can often be complex, USAA's offerings are a beacon of clarity. The absence of origination fees and transparent and competitive personal loan rates underscores the institution's dedication to providing a beneficial financial solution. It's undeniable that USAA's personal loan products resonate with those seeking financial support. As we assess the landscape of borrowing, the offerings from USAA remain a trusted choice, supported not only by their Better Business Bureau accreditation but also by their commitment to serve the members of our nation's military community and their families.

    Important

    Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

    Methodology

    At Finanso, we've carried out a comprehensive analysis of over 100 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

    In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

    At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

    Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

    Additional resources

    To learn more about loans and best practices, check out some of the following resources:

    Sources

    FAQ

    What credit score do you need for a USAA personal loan?

    USAA personal loans offer a unique opportunity for individuals with varying credit scores, including those with bad credit (a credit score below 640). While there is no officially specified USAA credit score requirement, it's reassuring to know that USAA considers applicants across the credit spectrum. This inclusivity reflects their commitment to serving a diverse range of financial needs.

    However, it's important to note that eligibility for a USAA personal loan extends beyond credit score alone. To qualify for a USAA personal loan, you must also be eligible for USAA membership. This eligibility requirement encompasses U.S. military members, veterans, their families, and certain officer candidates. This membership connection enhances the sense of community and trust USAA aims to foster.

    How fast does USAA approve loans?

    USAA is known for its efficient loan approval process, aiming to provide timely financial assistance to its members. Typically, the USAA loan timeline involves approximately 1 business day to receive loan approval and an additional 1 to 3 business days to access the funds following approval. This swift turnaround is often the experience for most applicants.

    It's important to note that while this timeline is a common scenario, individual circumstances might vary. External factors or additional verification requirements could sometimes extend the processing time. Therefore, while USAA strives to provide fast funding, it's advisable to be prepared for the possibility that the process could take longer.

    Does USAA verify income?

    Yes, USAA typically verifies income as part of the loan application process. Verifying income is a common practice among lenders to ensure that borrowers have the financial capacity to repay the loan. By confirming your income, USAA aims to assess your ability to meet the monthly payments associated with the loan you're applying for.