Compare the best personal loans for veterans
NerdWallet reviewed more than 35 financial institutions to find the best personal loans for veterans and military. These are our top picks.
Best for veterans with bad credit
- Accepts borrowers with bad credit or thin credit histories.
- Has a low income requirement.
- Fast approval and funding.
- Allows secured loans.
- Option to change your payment date.
- Origination fee.
- No rate discounts.
- No joint or co-signed loans.
- No direct payment to creditors on debt-consolidation loans.
- Uses nontraditional underwriting that may approve more applicants.
- Wide range of available loan amounts, from small to large loans.
Best for veterans with bad credit
- Offers direct payment to creditors with debt consolidation loans.
- Fast funding.
- Offers multiple rate discounts.
- Offers free credit score access.
- Charges origination fee.
- Borrowers can choose from only two repayment term options.
- No minimum income requirement.
- Loan funds may be sent within one business day after approval.
Best for veterans with bad credit
- Secured and joint loans.
- Multiple rate discounts.
- Mobile app to manage loan payments.
- Direct payment to creditors with debt consolidation loans.
- Long repayment terms on home improvement loans.
- Origination fee.
- No option to choose your payment date.
- Borrowers may receive rate discounts for autopay, direct payment to creditors and using multiple Upgrade products.
- Offers rare seven-year repayment term for home improvement loans.
Best for veterans with bad credit
- Accepts borrowers across the credit spectrum.
- Low income requirement.
- Fast approval and funding.
- Hardship program for borrowers in need.
- Seven-day customer service availability.
- Origination fee.
- No co-signed, joint or secured loans.
- No rate discounts.
- No large loan amounts.
- Avant's minimum credit score requirement is one of the lowest among online lenders.
- Loan applications may be approved within one day and funds deposited the next day.
Best for veterans with fair credit
- Wide range of loan amounts.
- Secured loan options.
- Direct payment to creditors with debt consolidation loans.
- Fast funding.
- Free credit score monitoring.
- Origination fee.
- No rate discounts.
- No mobile app to manage loan.
- Borrowers can use their home’s fixtures or vehicle as collateral for a secured loan.
- Best Egg sends loan payments directly to up to 10 creditors on debt consolidation loans.
Best for veterans with fair credit
- Joint loan option.
- Direct payment to creditors with debt consolidation loans.
- Option to pre-qualify with a soft credit check.
- Option to change your payment date.
- Fast funding.
- Origination fee.
- No mobile app to manage loan.
- Limited term lengths.
- Borrowers using a loan to consolidate debt may receive a rate discount.
- Member Center benefits include free credit score and insights into credit usage and debt-to-income ratio.
Best for veterans with good credit
- Option to pre-qualify with a soft credit check.
- Multiple rate discounts.
- Fast funding.
- Option to change your payment date.
- Wide range of loan amounts.
- Origination fee.
- Only two repayment term options.
- No secured, co-signed or joint loan options.
- No direct payment to creditors with debt consolidation loans.
- Borrowers can pre-qualify and check their potential rate with a soft credit pull.
- Can approve applications within minutes, and borrowers may receive money same-day.
Best for veterans with good credit
- Multiple rate discounts.
- Fast funding.
- Large loan amounts.
- Joint loan option.
- Mobile app to manage loan.
- No option to choose initial payment date.
- High minimum loan amount.
- Borrowers may pay no fees and receive multiple rate discounts.
- Borrowers have access to free financial planning and estate planning discounts.
Best for veterans with excellent credit
- No origination fee.
- Fast funding.
- Direct payment to creditors with debt consolidation loans.
- Wide variety of repayment term options.
- Available nationwide.
- No rate discount.
- Late fee.
- No co-sign or joint loan option.
- No origination fees mean borrowers receive the full approved loan amount.
- Offers fast payoff of creditors on debt consolidation loans.
Best for veterans with excellent credit
- No fees.
- Rate discount for autopay.
- Long repayment terms and large loan amounts.
- Fast funding.
- Rate Beat program and Experience Guarantee.
- No option to pre-qualify.
- No direct payment to creditors with debt consolidation loans.
- High minimum loan amount.
- Charges no origination fees and offers a rate discount for autopay.
- Offers loan terms up to 20 years and delayed funding on home improvement loans.
Best for lenders that cater to veterans
- Wide range of loan amounts.
- Wide variety of repayment term options.
- Fast funding.
- Rate discount for autopay.
- Joint loan option.
- Exclusive to USAA members.
- No option to pre-qualify with a soft credit check.
- No direct payment to creditors with debt consolidation loans.
- Offers very wide range of loan amounts and loan terms.
- Fully online loan process means borrowers don't need to visit a branch to close a loan.
Best for lenders that cater to veterans
- Wide range of loan amounts.
- Fast funding.
- No origination fee.
- Co-sign, joint and secured loan options.
- Direct payment to creditors with debt consolidation loans.
- Exclusive to credit union members.
- No option to pre-qualify with a soft credit check.
- No option to change your payment date.
- Wide range of loan amounts (starting at $250) and loan terms up to 15 years on larger home improvement loans.
- Offers co-signed, joint and secured loans.
What are personal loans for veterans?
Personal loans for veterans are typically unsecured loans offered by banks, credit unions and online lenders. These loans range from $1,000 to $50,000 and are repaid in fixed monthly installments, spread out over several years. Personal loans are available to veterans even if they have bad credit (629 credit score or lower).
Veterans in particular face numerous financial challenges that may lead them to seek out a personal loan. Active duty — which may include unpredictable deployments, base relocations or spouse unemployment — can stress household budgets, and there are often additional hardships once veterans transition to civilian life, like medical issues or loss of military benefits.
This can leave veterans vulnerable to predatory lenders, especially since protective legislation like the Military Lending Act and the Servicemembers Civil Relief Act applies only to active duty service members. It’s important to go with a reputable provider when applying for a personal loan.
What is the Military Lending Act?
The Military Lending Act, or MLA, is a federal law that protects active duty service members, their spouses and their dependents from predatory lending.
The MLA established a few automatic protections — most notably, a 36% interest rate cap, meaning lenders can’t charge more than 36% interest when extending credit.
What is the Servicemembers Civil Relief Act?
The Servicemembers Civil Relief Act, or SCRA, provides financial protections to active duty service members, but it only covers debt taken on before active duty service began.
Among its protections, the SCRA establishes that any pre-service loans may charge a maximum 6% interest rate.
When to consider a personal loan as a veteran
The best reason to use a personal loan is when it’s the least costly method of borrowing and it helps you realize a financial goal, such as consolidating your debt at a lower rate or increasing the value of your home with a home improvement project.
However, many borrowers use a personal loan to cover a large, unexpected expense, like an emergency car repair. Personal loans are a better option than high-interest alternatives like payday loans, since they’re easier to repay and can even help build your credit score.
Compare multiple offers from lenders to find the best deal and check your budget to ensure you can comfortably repay the personal loan as scheduled.
How to choose the best personal loan for veterans
There are a few things to consider as you compare personal loans.
Annual percentage rate: The annual percentage rate includes the loan’s interest rate and any fees, and it’s one of the best ways to measure affordability. For example, a two-year $5,000 loan with a 15% APR would cost $818 in interest. The same loan with a 10% APR would cost $537 in interest. The lower the APR, the cheaper it is to borrow the money.
Monthly payments: Consider a personal loan only if you're certain you can afford the monthly payments for the full term. Missing loan payments can lead to costly fees and lower your credit score.
Repayment term: Repayment terms on personal loans usually range from two to seven years, though longer terms are available from some lenders. If you choose a longer repayment term, you’ll have lower monthly payments, but you’ll also pay more in interest.
Funding time: Online lenders tend to fund loans faster than banks or credit unions, which can take up to a week to deposit the money into your account after you’re approved. Many online lenders promise next- or same-day funding.
Special perks: Lenders might offer other benefits that may appeal to you. For example, if you’re using a loan to consolidate debt, search for lenders that will pay your creditors directly so you don’t have to. Other lenders may include free financial education or a free monthly credit report as part of their loan product. Some lenders may offer special perks to active duty or retired military, like a rate discount.
» COMPARE: Best debt consolidation loans
What veterans need to qualify for a personal loan
Eligibility requirements
Lenders consider these to determine your eligibility for a personal loan:
Credit score and history.
Income.
Existing debts.
A loan applicant with good to excellent credit (a score of 690 or higher) is most likely to qualify for a personal loan with a low rate. However, some lenders specifically cater to applicants with bad credit and limited credit history.
Not all lenders publish income requirements, but they ask about your income on loan applications to ensure you earn enough to make the monthly payments. Include all sources of income in your application, such as disability benefits or rental income.
Lenders also review your debt-to-income ratio, which is the percentage of your monthly income that goes toward debt payments. A DTI below 36% is ideal for many lenders, but some accept borrowers with more debt.
How to boost your chances of qualifying
If you have bad credit, low income or a high debt-to-income ratio, you can boost your chances of qualifying for a personal loan with a joint, co-signed or secured loan.
Joint loans and co-signed loans involve adding another person — ideally with better credit or more income — to your loan application. This person is equally responsible for loan repayment and, depending on the type of loan you choose, may have access to the loan funds.
A secured loan involves tying collateral to the loan, like a car or an investment account. This helps guarantee the loan, which makes the lender more likely to approve you, but you risk losing the collateral if you fail to repay the loan.
How to get a personal loan for veterans
1. Check your credit
You can get your free credit score at AnnualCreditReport.com or by signing up for a NerdWallet account. If you have time before applying, look for quick ways to build your score, such as disputing errors on your credit report, paying down any small debts or asking for a credit limit increase on existing credit lines.
2. Pre-qualify with multiple lenders
Pre-qualifying is one of the best ways to determine whether a personal loan is the right choice. The process lets you preview potential loan terms, including APR, loan amount and monthly payments, without impacting your credit score.
3. Submit an application
Once you’ve chosen an offer, it’s time to apply. Personal loan applications are typically available online. You’ll be asked to provide basic personal information, including your Social Security number, and contact information like a home address, phone number and email address.
You also may be asked to include proof of identification and proof of employment and income.
» MORE: How to apply for a personal loan
4. Get funded
After submitting your application, approval time can be instantaneous or take a few days, depending on the lender. Expect your loan to be funded within a week. Many online lenders say they can fund a loan the same- or next day after approval.
Once you receive the funds in your account, make a plan to repay the loan. Missing even one payment can hurt your credit score and trigger late fees.
Other financial resources for veterans and active duty military
Veterans seeking personal loans or short-term emergency cash may have other resources such as grants, which provide free money with no repayment required, and financial assistance.
These are just a few of the many resources available to veterans. A complete list of veterans service organizations can be found through the Department of Veterans Affairs.
Federal benefits
U.S. Department of Veterans Affairs: The VA’s annual guide to federal benefits for veterans, dependents, survivors and caregivers offers information on disability compensation, housing grants for disabled veterans and educational assistance.
U.S. Government Guide to Military Pay and Benefits: The U.S. Government maintains a webpage dedicated to military pay and retirement benefits (including pensions), plus tuition assistance, health benefits and burial and survivor benefits.
Job training and placement
Blue Star Families: This nonprofit organization helps connect military families with free resources and services, including job opportunities for military spouses.
Hiring Our Heroes: The U.S. Chamber of Commerce Foundation launched this nationwide initiative to help veterans, transitioning service members and military spouses find employment. Hiring Our Heroes hosts hiring fairs and education and networking programs, and offers a corporate fellowship program.
Grants
VFW Unmet Needs Program: The Veterans of Foreign Wars offers this program for military families who have financial difficulties stemming from deployment or other military-related activity or injury. It provides grants up to $2,500 and can be used for eligible expenses, which include household expenses, vehicle expenses, utilities, childcare and medical bills.
American Legion Temporary Financial Assistance Program: This nonprofit veterans organization awards cash grants of up to $1,500 to children of current active duty military or American Legion members to help meet an urgent need like shelter, food and health care costs.
Business grants and resources for veterans: Veterans who are looking to start a business or who are existing business owners can seek financial assistance through the Small Business Administration, which offers funding, training and federal contracting opportunities for veterans, as well as resources for military spouses.
Grants and resources for disabled veterans: The Department of Defense publishes a comprehensive Compensation and Benefits Handbook for wounded, ill and injured service members of the armed forces. It covers medical care, family and caregiver support, Social Security benefits and more.
Last updated on October 23, 2024
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's Best Personal Loans for Veterans in 2024
- Upstart: Best for Loans for veterans with bad credit
- Universal Credit: Best for Loans for veterans with bad credit
- Upgrade: Best for Loans for veterans with bad credit
- Avant: Best for Loans for veterans with bad credit
- LendingClub: Best for Loans for veterans with fair credit
- Best Egg: Best for Loans for veterans with fair credit
- Rocket Loans: Best for Loans for veterans with good credit
- SoFi Personal Loan: Best for Loans for veterans with good credit
- Discover® Personal Loans: Best for Loans for veterans with good credit
- LightStream: Best for Loans for veterans with good credit
- USAA Personal Loan: Best for Lenders that cater to veterans
- Navy Federal Credit Union Personal Loan: Best for Lenders that cater to veterans