With hundreds of lenders vying for your business, finding the right personal loan isn’t always easy.
However, if you’re a USAA member, a USAA personal loan offers decent interest rates and life-saving borrower protections during times of financial hardship.
Before you apply for a personal loan, find out if USAA is the best fit for you.
USAA personal loan review
USAA has provided financial products and services to military members and their families since 1922. Personal loans are just one of the many products the financial services group offers its members.
You can borrow as little as $2,500 with a USAA personal loan, but there’s no maximum loan amount. Repayment terms range from 12 to 84 months, making it possible to keep your monthly payment affordable.
Here are a few ways to determine if a USAA personal loan is the right choice for you:
- You’re a USAA member. Some USAA products and services are available to the public, but the personal loans require you to be a full-fledged member. Continue reading for eligibility requirements.
- You have high-interest credit card debt. USAA doesn’t offer the lowest interest rates, but you might qualify for a rate that’s lower than the average credit card APR of 13.61%. As of August 2017, USAA personal loan rates start at 8.99% to 10.99% APR, depending on your creditworthiness and loan term.
- You foresee financial instability in your future. With USAA Debt Protection, you won’t need to worry about making payments if you become disabled or lose your job. This feature is an add-on product; fees will depend on your monthly payment and coverage level.
How can you use your USAA personal loan?
USAA doesn’t list any restrictions on how you can use USAA personal loans, but that doesn’t mean you should get one without a second thought.
In general, the best use for a personal loan is to pay off high-interest credit card debt. Paying for college, a car, or a vacation might not be worth it over the long run, as you might benefit from a more specialized loan and careful planning.
USAA personal loan fees and interest rates
USAA keeps its fees as low as possible. It charges no application, origination, or prepayment penalty fees.
In contrast, some lenders charge an origination fee between 1 percent and 6 percent of the loan amount. On a $5,000 loan, USAA could save you between $50 and $300.
The lender does charge a late fee of 5 percent of the payment amount. But it offers a 15-day grace period after your payment is due before the fee is assessed.
As of August 2017, USAA personal loan interest rates start at 8.99% or 10.99%, depending on your creditworthiness and loan term. All rates are fixed, so there’s no need to worry about your rate going up over time. Here’s what you’ll see on USAA’s website:
If your credit is less than stellar, adding a co-signer can improve your chances of getting approved at a lower rate. Also, you can qualify for a 0.25% interest rate reduction if you sign up for automatic payments.
Requirements for USAA personal loans
To qualify for a USAA personal loan, you must be a member. Membership is open to the following groups:
- Active, retired, and honorably separated officers and enlisted personnel of the U.S. military
- Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS)
- Adult children of USAA members
- Widows, widowers, and former spouses of members who had an established USAA membership while married
USAA doesn’t have any public income or credit requirements for its personal loans. However, you must have excellent credit to qualify for the lowest rates and terms greater than 60 months.
How to apply for a USAA personal loan
You can apply for a loan online or by calling USAA at 800-531-8722. If you choose to apply online, you’ll start on the lender’s personal loans page. From there, you’ll click “Apply Now,” after which you’ll be prompted to log in with your online account credentials.
Since USAA already has your personal information on file, the application process is quick. All you’ll need to add is your current employment and income information as well as how much you want to borrow. Here’s what USAA members will see after they log in:
Once you finish and submit the application, USAA will run a hard credit check to determine your creditworthiness. The lender also might ask for supporting documents to verify your employment and income information.
How to contact USAA
Should you apply for a USAA personal loan?
USAA offers decent interest rates and low fees on its personal loans. You must have a military connection to join, though, which rules out a lot of people.
If you do qualify for membership, USAA’s debt protection feature can give you peace of mind in case you fall on hard times financially.
Before you apply, check out some other top personal loan companies and compare rates and features. Some lenders, such as SoFi and Earnest, allow you to get a preliminary interest rate without a hard credit check. And if your credit is excellent, you might even qualify for a lower interest rate.
In the end, it’s important to consider both the savings of a lower interest rate and a loan’s features, such as USAA Debt Protection. Thoroughly research several options to make sure you get the best personal loan for your needs.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|