Best personal loans for veterans of 2024

A personal loan provides a lump sum of money that you can use for almost any purpose, like buying new clothes, decorating and updating your home, or taking a vacation. Personal loans are more affordable than credit cards (on average), according to data from the Federal Reserve, and you can pay one back over several years without worrying about your payment increasing. 

You'll get the lowest personal loan rates with good credit, but even bad credit and fair credit borrowers have options (which we'll get into below).

Compare personal loan rates

Veteran- and military-specific lenders

You're not limited to choosing a lender that specializes in military loans. But one could make sense, especially if you have fair or poor credit and already have a banking relationship with such a lender. Either way, it's a good idea to prequalify with multiple lenders first to get a sense of the rates and terms you may be eligible for. Prequalification won't hurt your credit (like a formal loan application will), which makes it a relatively no-risk way to compare customized rate estimates. 

Neither Navy Federal or USAA let you prequalify. But you can compare your loan offer from either with prequalification quotes from other lenders before accepting.  

Navy Federal Credit Union

Navy Federal offers personal loans with annual percentage rates (APRs) as low as 8.99% to 18.00% (current as of March 2024), repayment terms up to five years (up to 15 years for home improvement loans), and loan amounts up to $50,000 (up to $150,000 for home improvement loans. Personal loans secured by your Navy Federal savings account or Navy Federal CD are available at lower rates, and with no credit check.

The company doesn't have a minimum credit score requirement, but relies on information in your TransUnion report, your income, and the status of your Navy Federal accounts to determine your eligibility for a personal loan and rate. Funds are typically disbursed the same day of approval.

Membership is available to veterans, active-duty military, Department of Defense civilian employees, and their family members. It has over 300 branches worldwide, many of which are on or near military bases. 

USAA

At USAA, membership is offered to military service members, veterans, or spouses of a military service member or veteran. APRs start at 10.14% on personal loans, but don’t exceed 18.51% (current as of March 2024). Repayment terms range from one to seven years and loan amounts range up to $100,000. You can expect to receive funds within two business days of approval.

Loans for veterans with good credit

These lenders aren’t specific to veterans, but they do offer some of the best rates for borrowers with good and excellent credit.

SoFi: Best overall

Discover: Best for no origination fees (and low rates)

LightStream: Best home improvement loans and low rates

Best Egg: Best for high close rates if pre-approved

LendingClub: Best online experience

Loans for veterans with bad credit (and fair credit)

If you have a poor score, these lenders specialize in bad-credit loans. However, you may receive a higher APR.

Upgrade: Best for fair credit

Universal Credit: Best debt consolidation loans for bad credit

OneMain Financial: Best bad credit personal loans

Upstart: Best fast personal loans for all credit types

Avant: Best for all credit types

Methodology

We evaluated the best personal loan lenders for veterans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

How to compare personal loans

Personal loans can vary from lender to lender, so it’s important to evaluate each option.

• Compare APRs: This is the main factor that can determine how much you’ll pay to borrow. The lower the rate, the better. The APR reflects the total yearly cost of borrowing, including the interest rate and upfront fees. This makes it a better comparison tool than relying on the interest rate alone. For context, current personal loan APRs from top lenders can range from about 6.40% to 35.99%. And some lenders may offer rate discounts for signing up for autopay, or even having a military affiliation.
• Available loan terms: Personal loan repayment terms range from 1 to 7 years. If you have a longer loan term, you may have a lower monthly payment, but your total interest costs will be higher. Decide on the repayment term you’re comfortable with, and look for lenders that offer it.
• Secured or unsecured: Many personal loans are unsecured, which means you don’t need to provide any sort of collateral, like your house or car, to secure the loan.You may receive higher APRs with unsecured loans, but secured loans risk your collateral in the event you can’t make your payments.
• Loan amount: Lenders have different loan maximums, so find one that offers the amount of money you need. Loan amounts can range from less than $1,000 to $100,000 or more, depending on the lender. Keep in mind that the more you borrow, the more it will cost you overall.
• Funding times: How quick a lender can fund your loan may be an important factor. This can range from the same day you’re approved to a week or longer.
• Lender reputation and credibility: Some lenders may be better at customer service, while others may not. Reading lender reviews and customer reviews can be helpful and inform your decision. Trustpilot and the Better Business Bureau are some resources to consider for customer reviews.

Qualifications for personal loans

To be eligible for a personal loan, you’ll typically need to meet certain lender requirements, including:

• Credit score: Your credit score is one key tool that lenders use to determine your ability to pay back the loan. In general, lenders want to see a FICO score of at least 670 — but the higher your score, the better your chances of approval and of securing a lower rate.
• Income: Your income signals to lenders that you’re likely to be able to make your loan payments. The lender will have to verify it, often via documentation like pay stubs or W-2s.
• Debt-to-income ratio (DTI): Finally, as another check on your ability to pay, lenders look at your DTI, which is your monthly debt payments divided by your gross monthly income. You’ll generally need a DTI ratio of 35% or lower to qualify for a personal loan.

How to get a personal loan for veterans

You’ll generally need to follow these steps to get a personal loan for veterans:

1. Check your credit: Getting a copy of your credit report (and checking for inaccuracies) is a great first step. You can visit AnnualCreditReport.com for a free credit report.
2. Compare lenders: As noted above, you’ll want to look at aspects such as APRs, repayment terms and loan amounts, as well as funding times and lender reputation to find a lender that works for you.
3. Prequalify: Use prequalification to compare multiple lenders to see the rates and terms you may be eligible for before applying. This won’t impact your credit, but it will give you a more precise look at the options from the lenders you’re considering, helping you narrow things down. Prequalifying isn’t an offer of credit, however, and the final rate you receive may be higher than the estimate. Once you formally apply for a loan, the lender will conduct a hard credit inquiry, which may lower your score by a few points temporarily.
4. Apply for a loan: Once you find the best lender for your needs, you’ll need to complete the loan application. This typically involves filling out the application online and providing income verification documents, as well as other personal information (such as your date of birth and Social Security number or Individual Taxpayer Identification Number. It is at this point that the lender will perform a hard credit pull.
5. Finalize loan and begin payments: If approved, you’ll have to read over and sign the loan document. From there, you’ll be able to use the money as you need it, and then start making payments according to your loan’s terms.

How to get a personal loan with bad credit

If you find that qualifying is difficult based on your credit, income, or existing debts, here are a few options you may want to consider to boost your chances:

• Get a secured loan: A secured loan requires you to provide something of value as collateral, so there is an element of risk. If you default, you could lose your collateral. Common types include assets such as your car or home.
• Boost your income: If possible, increasing the amount of money you earn can be another way to make it easier to qualify for a personal loan. You can accomplish this by getting a higher-paying job, or picking up a side hustle.
• Pay off small debts: Because your DTI plays a role in qualifying, reducing your debt load can help reduce your ratio and make it easier to access loans.
• Consider making moves to improve your credit: You can enhance your credit score by making consistent payments on time and maintaining low credit utilization rates. However, this can take time to accomplish. There’s also Experian Boost, which is free and can raise your score if you pay your utility, rent, and even streaming bills on time.
• Add a cosigner: If you know someone who has good to excellent credit and is willing to vouch for you, a cosigner can be another avenue to qualify for a loan. You should note, however, that the cosigner is on the hook for loan payments if you stop making them, which could strain your relationship and damage both of your credit scores, in the case of missed payments. Not all lenders offer personal loans with a cosigner.

Alternatives to veteran loans

You have access to many other resources beyond traditional personal loans.

Department of Veterans Affairs

If you’re in the market for a home, the Department of Veterans Affairs (VA) offers the VA home loan program, which facilitates veterans in purchasing a home — without a down payment, in some cases — provides competitive rates, and negates the need for private mortgage insurance. The VA's interest rate reduction refinance loans can assist veterans with existing VA loans in securing a lower rate. Aside from the VA home loan program, the Department of Veterans Affairs also offers an annual federal benefit guide for veterans.

The National Veterans Foundation referrals

This foundation specializes in helping veterans with crisis management, as well as providing information and referrals. For example, the Lifeline for Vets program gives vets access to referrals for common issues they face, such as seeking medical and mental health treatment, accessing VA benefits, and legal aid.

Financial aid from the Coalition to Salute America’s Heroes

This organization provides emergency financial aid to “severely-wounded veterans and families,” and can help bridge the gap between applying for disability and actually receiving those funds, among other situations.

Grants

There are also several programs available that can offer grants to veterans. Grants generally don’t need to be repaid, making them an ideal option.

• Military Heroes program: Available through the PenFed Foundation, this program can provide grants for those experiencing an emergency, as well as to help fund projects designed to positively impact other veterans.
• Veterans of Foreign Wars Unmet Needs program: This organization offers financial grants for those who’ve encountered “unexpected financial difficulties because of deployment or other military-related activity or injury.”

Job placement

Finding a job can be difficult on your own as a veteran, but these resources can help.

• My Next Move for Veterans: This resource can help you figure out what kind of career you want after leaving active duty, and find apprenticeships and jobs in that field.
• Office of Veterans Business Development: Offered by the Small Business Administration, this office supports vets who want to start their own businesses via mentorship, training, and counseling.

Best personal loans for veterans FAQ

How can veterans with bad credit obtain personal loans?

There are a few options that may help, including getting a cosigner, taking out a secured loan, and using a tool like Experian Boost to raise your credit score.

Can personal loans for veterans be used for any purpose?

In general, there aren’t limitations on how you can use personal loans, except for using them to pay for college tuition or illegal activity.

What is the typical interest rate range for personal loans for veterans?

It varies by lender and your credit profile, but APRs can go from as low as 6.40% up to 35.99%. The average APR for a 24-month personal loan was 12.35% as of November 2023, according to the Federal Reserve.

Are there any specific benefits or discounts available for veterans when applying for personal loans?

There can be, depending on the type of loan and lender. For example, autopay and military rate discounts can help lower long-term costs.