Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

Best Allotment Loans for Federal Employees (2024)

Federal employees may be able to qualify for fast funding at competitive rates even with poor credit.

Allotment loans are typically offered as a benefit to federal employees and government workers. They often have more lenient requirements to qualify than more traditional personal loans, and repayments are usually deducted directly from employee paychecks. Check out our top picks for allotment loans for federal employees with competitive rates and a wide range of loan amounts.

Best allotment loans for federal employees

Best for low rates

Kashable

Min. credit scoreN/A
APR6% to 36%
Loan amount$250 to $20,000
  • Available in all states

Best for longer loan terms

BMG Money

Min. credit scoreNo minimum credit score required
APR19.99% to 35.99%
Loan amount$500 to $12,000
  • Not available in: Connecticut, Indiana, Maine, Massachusetts, Nebraska, New York, Vermont, Washington, West Virginia, Wisconsin

Best for fast funding

Access Loans

Min. credit scoreNone
APRUp to 35.99%
Loan amount$850 to $6,000
  • Available in all states

Best for state and local government and education employees

TrueConnect

Min. credit scoreNo minimum
APRStarting at 3.99%
Loan amount$1,000 to $100,000
  • Not available in: New Jersey, Rhode Island

Methodology: Why we chose these lenders

Finder loan experts scoured the lending industry for financial institutions that specifically offer allotment loans to federal employees or workers with state and local government or educational institutions. We ultimately chose these lenders based on requirements to qualify, interest rates, loan amounts and terms, turnaround times and customer reviews.

Factors weighed in our methodology for the best allotment loans for federal employees include:

  • Turnaround times
  • Range of interest rates
  • Additional fees charged
  • Credit score requirements
  • Range of borrowing limits
  • Flexible repayment options
  • Better Business Bureau ratings and reviews
  • Trustpilot ratings and reviews
  • Number of states served

How to qualify for an allotment loan

Requirements to qualify for an allotment loan are similar across most lenders in this space.

  • Be at least 18 years old
  • Work for an eligible employer
  • Not be an active military member
  • Reside in a state serviced by these lenders

Depending on the lender, you may also need to meet specific employment criteria, such as length of time employed and minimum income requirements.

What do people on Reddit say about allotment loans?

People on Reddit seem to most highly recommend allotment loans from BMG Money and Kashable. Some say these loans can be an easy way to get fast funding when you need it. But other posters say these loans often come with high rates and relying on them to get by may put you in a financial hole. If rates are too high, you may look into other loans like BMG Money instead.

Alternatives to allotment loans

Name Product USFPL Filter Values APR Min. credit score Loan amount
Best Egg personal loans
Finder Score: 3.8 / 5: ★★★★★
Best Egg logo
7.99% to 35.99%
640
$2,000 to $50,000
Fast and easy personal loan application process. See options first without affecting your credit score.
Upstart personal loans
Finder Score: 4.2 / 5: ★★★★★
Bankrate logo
7.40% to 35.99%
300
$1,000 to $50,000
This service looks beyond your credit score to get you a competitive-rate personal loan.
SoFi personal loans
Finder Score: 4.4 / 5: ★★★★★
Bankrate logo
8.99% to 29.99% fixed APR
680
$5,000 to $100,000
A highly-rated lender with competitive rates, high loan amounts and no required fees.
Upgrade
Finder Score: 4 / 5: ★★★★★
Bankrate logo
9.99% to 35.99%
580
$1,000 to $50,000
Check your rates with this online lender without impacting your credit score.
LendingPoint personal loans
Finder Score: 3.3 / 5: ★★★★★
Bankrate logo
7.99% to 35.99%
Not stated
$2,000 to $36,500
Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
loading

Frequently asked questions

Can I get an allotment loan with bad credit?

Allotment loans typically have more lenient credit requirements than other types of lending. This leniency means that federal employees with low credit scores — or no credit history — can usually qualify for allotment loans if they meet the minimum requirements.

But keep in mind that you’ll need good credit to get the best rates. If you can’t find what you’re looking for, look into personal loans for people with bad credit.

Can an allotment loan hurt my credit?

Some lenders in this space only require a soft credit check to apply for allotment loans, which won’t affect your credit score. However, other lenders report your payment history to the credit bureaus, so your score will take a hit if you have late or missed payments. On the flip side, a history of on-time payments will boost your credit score.

Are allotment loans available for non-federal employees?

Yes, some of these lenders offer allotment loans to workers of all kinds — not just federal or government workers. You’ll just need to verify that your employer partners with a lender that offers allotment loans and that the loan is available in your state.

Megan B. Shepherd's headshot
To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
Lacey Stark's headshot
Written by

Writer

Lacey Stark is a freelance personal finance writer for Finder, specializing in banking, loans, investing, estate planning, and more. She has 20 years of experience writing and editing for magazines, newspapers, and online publications. A word nerd from childhood, Lacey officially got her start reporting on live sporting events and moved on to cover topics such as construction, technology, and travel before finding her niche in personal finance. Originally from New England, she received her bachelor’s degree from the University of Denver and completed a postgraduate journalism program at Metropolitan State University also in Denver. She currently lives in Chicagoland with her dog Chunk and likes to read and play golf. See full bio

More resources on Finder

More guides on Finder

Ask a question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site