USAA Personal Loans Review
USAA personal loans are specifically designed for military service members, veterans and their family members. USAA was founded in 1922 and currently has 13 million members. This USAA personal loans review will outline how USAA compares to other banks and help you decide if it’s the best personal loan for you.
USAA Personal Loans Review
Complete USAA Personal Loans Review
This personal loan is suitable for: Eligible members who need a personal loan of up to $100,000 with no application or early repayment fees.
Top benefits
No Application or Prepayment Fees: USAA Personal Loans does not charge personal loan application fees or initial prepayment fees. Some banks charge a loan origination fee that typically runs between 1% and 8%. No prepayment fees mean borrowers can pay off their loans quickly at any time without penalty.
Interest Rate Discount for Autopay: For borrowers who enroll in Autopay, they will receive a 0.25% discount on their interest rate.
Co-borrower option: USAA Personal Loans offers borrowers the option of adding a co-borrower to a personal loan. If you have bad credit, it can be difficult to qualify for or get a competitive interest rate. Adding a co-borrower with a better credit score can help you qualify and potentially get a better interest rate.
Get Funds Fast: The online application process takes minutes and if approved, borrowers can receive their funds immediately within 24 hours of closing.
What can be improved
Only military members, veterans and family members qualify. Eligibility for a USAA personal loans is limited to:
- Those who are on active duty, National Guard or Reserves
- Veterans who served honorably
- Cadets or Midshipmen
- Spouses and children of USAA members
Longer repayment terms require higher personal loan amounts. Loan repayment terms range from 12 months to 84 months. The length of tenure depends on the amount borrowed. Loans that are longer than 60 months (five years) must meet high credit score requirements.
- Need a personal loan of $2,500 or more for a term of 12 to 36 months
- A personal loan of $5,000 or more is required for a 48-month term
- Need a personal loan of $10,000 or more for a 60-month term
- Need a personal loan of $15,000 or more for a 72-month term
- Need a personal loan of $20,000 or more for an 84-month term
Cannot be used for higher education. The USA places certain restrictions on how personal loans can be used. USAA personal loans cannot be used to cover higher education expenses.
There is no pre-qualification of the loan. Borrowers are unable to see what they pre-qualify for without applying for a loan. This results in hard credit score inquiries, which can lower your score. The website only offers a loan calculator. Make sure you shop around and get a USAA personal loans before applying. It’s a mistake to run down your credit score to see what your rate might be when taking out a loan.
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How to qualify for a USAA personal loans
qualify for a USAA
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 Personal Loans
- 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
Alternatives to consider
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.
Alternatives to consider
- Marcus by Goldman Sachs® offers loans that go up to $40,000 based on your credit score. Marcus also gives you up to six years to repay the loan.
- Avant offers personal loans for those with a lower credit score, starting as low as 580. Borrowers can get loans for as little as $2,000 and as much as $35,000.
Who USAA Is Perfect For
MoneyGeek’s USAA personal loans review found that the lender is best for active-duty military, veterans and eligible family members in need of immediate access to funds. The online application process can be completed in a few minutes. The company typically sends the funds to approved borrowers within 24 hours.
Having a mobile application makes the company ideal for borrowers who want easy access to services. You can manage your account and complete transactions anywhere and anytime.
Who Should Not Choose USAA
While USAA offers high loan amounts and flexible repayment terms, it is not the best option for some borrowers. The company only caters to military members and their eligible family members. Non-military individuals cannot apply for a personal loan from USAA.
Individuals looking for a personal loan to fund their higher education should not choose USAA. The company does not allow borrowers to use the funds for this purpose.
If you want longer repayment terms but only need a small amount, USAA Personal Loans may not be the right option for you. The company only offers longer terms to higher loan amounts.
Disclaimers
Disclaimers
Marcus by Goldman Sachs Disclaimer
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. To obtain a loan, you must submit additional documentation including an application that may affect your credit score.
The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness.
Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
This USAA personal loans is right for you if:
- 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
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