Members of USAA may benefit from a personal loan starting at $2,500.
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USAA has been offering loans to its members since 1922 and has grown to be a leading financial institution that serves military members and their families. It may not have the lowest rates around, but with minimal fees and a debt protection plan to help borrowers, USAA may be a good choice for those who already hold an account.
What is a USAA personal loan?
USAA offers unsecured personal loans to current and former members of the military and their families. These loans have competitive rates and long terms. You may be able to borrow up to 84 months for amounts over $20,000.
Loan amounts start at $2,500. Rates are fixed, and those with excellent credit who choose automatic payments may qualify for an APR between 8.99%–10.99%.
Terms vary by loan amount. 12- to 36-month terms are available for every loan, but longer terms require you to borrow more.
Compare your other personal loan options
What are the benefits of a USAA personal loan?
If you’re a member of the US military or come from a military family, you could qualify for the many benefits of a USAA personal loan.
- Online application and fast funding. Depending on when you apply, you may get same-day approval and receive funds as soon as the next business day.
- Autopay discounts. Sign up for autopay from a USAA account and get a rate discount of 0.25%.
- No hidden fees. Pay no prepayment, application or other hidden fees.
- USAA debt protection. You can pay a fee to protect yourself from unforeseen financial difficulties. You’re covered even if you can’t make payments.
How to use a USAA loan for debt consolidation
If done right, debt consolidation can lower your monthly payments or reduce your interest rates — or both. And with USAA, you get the added benefit of a bank that knows you.
To determine if debt consolidation is the right choice for you, pop over to our debt consolidation calculator or use the one one USAA’s website to get an idea of how much you might be able to save. If you think you might be saving money by consolidating, you can apply using the steps below. And if you’re approved, you can use your loan funds to pay off your current lenders — just be sure you get the payoff amount, as this will likely be higher than the remaining debt on your monthly statement.
Once your individual debts are paid, you’ll only have one bill: Your USAA personal loan. It works like any other personal loan, so be sure to have a budget in place to stay on top of payments.
What to watch out for
- Must be military to apply. USAA loans are only available to current and former members of the US military and their families.
- Not ideal for excellent credit. With rates from 8.99%–10.99%, USAA might not the most competitive financing option for borrowers with excellent credit.
- Strong credit required. You’ll still need to have at least a good credit score to qualify for a USAA loan.
How do I apply?
To apply for a personal loan with USAA, you must
- Be USAA member
- Have good to excellent credit
- Be a US citizen or permanent resident
- Be at least 18 years old
Visit USAA online and click Join USAA to get started. If you’re already a member, log in to your USAA member account. From here, you can fill out the application by providing some basic information about yourself, including details about your finances.
Once you’ve submitted your info, a specialist considers your loan request. You’re usually notified of the loan decision within one to two business days.
What do I need to apply?
- Your personal information, including your date of birth and Social Security number.
- Details about you or your family member’s military service.
- Your current employment and financial information.
I got a USAA personal loan. Now what?
Once you have your USAA personal loan, keep up with monthly payments to avoid paying unnecessary fees.
- Make timely payments. Avoid the 5% penalty on your late payments with autopay.
- Sign up for autopay. Get a rate discount of 0.25% when you sign up for autopay through a USAA checking account.
- Pay more than the minimum. To avoid excessive interest over the life of your loan, consider paying more than the amount required each month.
Bottom line
USAA loans offer competitive fixed rates with quick approval and flexible repayment options, but you must be eligible for USAA membership. If you can’t open an account with USAA, you can compare other personal loan options to find a good fit for you.
Frequently asked questions
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Do I need a savings or checking account with USAA to get a personal loan?
Hello Alokoa,
Thank you for your comment.
USAA personal loans are reserved for USAA members who meet the eligibility criteria. So you must be a member first and yes, you need a USAA checking account since you will use that for repayments.
Regards,
Jhezelyn