USAA Personal Loan Lender Review

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ByChristopher Boston
Edited byJonathan Ramos
ByChristopher Boston
Edited byJonathan Ramos

Updated: February 14, 2024

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As a personal loan lender, USAA can be a solid option with competitive APRs, no application or origination fees and a range of loan amounts suitable for various needs. Quick fund disbursement and a 0.25% autopay discount add to its appeal. However, it's best suited for military families, and a hard credit check is required. While it doesn't allow co-signers, its tailored approach makes it a strong option for eligible borrowers seeking flexible, affordable loan solutions.


  • USAA

    • 9.94% to 18.51%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $100,000Loan Amount Range
    • 12 to 84 monthsRepayment Terms
    • Within 2 business days of approvalTime to Receive Funds

    USAA stands out as a reliable personal loan lender, offering notable benefits. With competitive APRs starting at a low of 9.94%, you could potentially save on interest over the loan's lifespan, which is particularly beneficial for larger or long-term loans where interest costs can accumulate. Additionally, USAA doesn't charge application or origination fees, and there are no prepayment penalties. This makes obtaining a loan more affordable upfront and allows you to pay off the loan early without incurring extra costs.

    The company offers loan amounts ranging from $1,000 to $100,000 with various repayment terms up to 84 months. Whether you need a modest loan for an emergency or a more considerable sum for significant expenses, USAA has options to fit your needs. With quick fund disbursement within two business days, you will be able to get your money quickly.

    These features, combined with its autopay discount, set USAA apart from other personal loan lenders, particularly for those in the military community. The company is dedicated to offering a service tailored to your unique financial situation.

    Pros

    • Competitive APRs starting as low as 9.94%
    • No application/origination fees or prepayment penalty
    • Flexible loan amounts ranging from $1,000 to $100,000
    • Various repayment terms up to 84 months
    • Quick fund disbursement within two business days
    • 0.25% APR discount with autopay setup

    Cons

    • Hard credit check required, potentially impacting credit score
    • Membership is limited to military, veterans and their families
    • No pre-qualification option for rate checking
    • Late payment fee of 5% of the amount due
    • Specific loan amount requirements for different terms
    USAA

Features of USAA

You get flexibility and support when choosing USAA for a personal loan. You can use your loan for various needs, whether for home improvements, debt consolidation or unexpected expenses. USAA offers clear terms on personal loans, including fees and repayment periods, helping you plan your finances effectively. Its customer service team can assist with any inquiries, and the online platform ensures convenient loan management. Understanding these features can help you decide if USAA fits your needs.

What Can You Use Your Funds For?

Understanding how you can use your USAA personal loan is key. While some lenders restrict how you can use your loan, USAA provides flexibility for various personal needs. This makes it easier for you to manage your finances, whether for planned or unexpected expenses.

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Regarding post-secondary education expenses, which a USAA personal loan doesn’t cover, we suggest exploring other financial aid options. These include scholarships, grants and federal student loans, which often come with lower interest rates and more flexible repayment terms. USAA can also provide guidance on financial planning for education, ensuring you find the best solution for your academic funding needs.

Loan Terms for a USAA Personal Loan

Understanding the terms of a USAA personal loan will help you make a smart financial decision. Knowing details like loan amounts, repayment terms and APR (Annual Percentage Rate) enables you to pick a loan that fits your budget and financial goals.

USAA's APR range is already competitive, and it becomes even more favorable with its autopay feature, which makes you eligible for a discount. However, your actual rate depends on various factors, including your credit score and other criteria.

The amount you borrow directly influences your repayment terms. USAA offers loans starting from $1,000 up to $100,000, catering to a wide range of financial needs. Shorter loan terms are available for smaller amounts, while larger loans qualify for longer repayment periods. This flexibility allows you to choose a timeframe that aligns with your financial situation and repayment capacity. The table below details this further:

Loan Amount
Loan Terms

$1,000 or more

12 to 36 months

$5,000 or more

48 months

$10,000 or more

60 months

$15,000 or more

72 months

$20,000 or more

84 months

Fees and Discounts for a USAA Personal Loan

Let's start with a perk — USAA offers a 0.25% discount on your APR when you set up autopay. It simplifies your payment process and reduces the overall cost of your loan, a smart move for saving money.

In terms of fees, USAA stands out for its borrower-friendly approach. Here's what you won't be paying:

  • Origination Fee: While many lenders impose an origination fee for processing loans, USAA doesn't, helping to keep your borrowing costs lower.

  • Application Fee: Applying for a loan with USAA is cost-free, so you can explore your loan options without any upfront financial commitment.

  • Early Payoff Penalties: If you can pay off your loan early, USAA won't charge you any extra fees. You can save on interest without worrying about additional costs.

However, it's important to stay on top of your payments, as USAA does charge a late fee. If you miss a payment, the company applies a fee equal to 5% of the payment amount due. This encourages timely payments and helps maintain the terms of your loan agreement.

USAA's fee structure is designed to be straightforward and borrower-friendly, focusing more on benefits like autopay discounts than multiple fees.

USAA Customer Service

Good customer service is key when choosing a personal loan lender. It ensures you have support whenever you have questions or issues with your loan. USAA excels in this area, offering various ways to reach out for assistance.

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Accessible customer service, like USAA's, ensures you're never alone in managing your personal loan, providing a smoother and more reassuring borrowing experience.

USAA Personal Loan Online Resources

Getting funds isn't the end all, be all when choosing a personal loan lender. You must also consider the resources it provides to help manage your loan and financial health. USAA offers several online tools:

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These resources from USAA provide valuable guidance and convenience, which can make your personal loan experience much easier.

Qualifying for a USAA Personal Loan

Knowing what USAA looks for when assessing eligibility for a personal loan is crucial. You can see if you fit its criteria, saving you time and effort. Let's dive into what generally influences your eligibility for a USAA personal loan.

  • Membership Requirements: To access a USAA personal loan, you must be a member. This includes individuals serving in the U.S. military, veterans with an Honorable or General Under Honorable Conditions discharge and their eligible family members.

  • Credit Score: While USAA doesn't specify a minimum credit score, most lenders look for a certain level to ensure responsible credit management. A higher score generally translates to more favorable loan terms.

  • Income Threshold: Your income is key. Lenders want to see that you have enough earnings to manage loan repayments comfortably. USAA, like others, will consider your income level, although it doesn't publicly state a minimum requirement.

  • Credit History Length: A longer credit history can demonstrate your reliability as a borrower. USAA, similar to other lenders, will likely consider how long you've been managing credit.

  • Debt-to-Income Ratio: This is about balancing your monthly debt payments against your income. A lower DTI ratio suggests a healthier financial status. USAA considers this ratio, although it doesn't specify a particular range.

Understanding these factors gives you a clearer picture of what you need to qualify for a USAA personal loan, ensuring you're prepared before you apply.

Is a USAA Personal Loan Right for You?

Deciding if a USAA personal loan is right for you is a big step. Your assessment influences how comfortably you can manage your loan and its repayment in the long run. Think about things like the loan terms, fees and your eligibility. Matching these with your financial needs and capabilities ensures you make a choice that supports your financial well-being, avoiding any stress or surprises down the line.

Who Can Benefit From a Personal Loan From USAA?

USAA caters to military personnel, veterans and their families; the company understands and is dedicated to your specific financial needs. USAA's history and services are deeply intertwined with military life, offering a level of insight and support that's hard to find elsewhere.

If you're looking for larger loan amounts, USAA may be a good fit, with loans ranging from $1,000 to $100,000. This range offers flexibility and ensures that you can find a loan amount that matches your specific requirements.

USAA's efficient process is a big plus for those seeking quick fund access. It typically disburses funds within two business days after document verification. Speed can be crucial when you urgently need the money, especially for unexpected expenses or time-sensitive investments.

Who Shouldn’t Secure a Personal Loan From USAA?

For borrowers who prefer to check potential rates before committing, USAA might not be the ideal choice. It doesn't offer a pre-qualification option, which means you can only see your loan terms and rates after undergoing a hard credit check. Unfortunately, that can temporarily affect your credit score, so other lenders may be more suitable if you're keen on shopping around without impacting your credit.

Timely payments are crucial with USAA, as it charges a 5% late fee on the due amount. If you anticipate potential challenges in maintaining on-time payments, considering other lenders might be wise to avoid these additional charges.

USAA's loan amount requirements, tied to specific repayment terms, might not appeal to everyone. For instance, if you need a loan amount that doesn't align with USAA's terms, like a smaller loan over a longer period, you might need to explore other lenders for better options.

How to Apply for a USAA Personal Loan

Understanding the steps to apply for a USAA personal loan streamlines the process and improves your chances of quick approval. Gathering the required information beforehand can speed up your application.

1
Apply Online

Your first step is to fill out the online application form. You must state your desired loan amount and provide details about your income, housing and employer. While there's no fee to apply, be prepared with necessary financial documents like W-2s, pay stubs and bank statements for verification. Remember, USAA does an immediate hard credit check, which could temporarily lower your credit score.

2
Set Up Your Loan

Once approved, you'll move to the loan setup phase. Here, you choose the repayment term that works for you. USAA simplifies this process by allowing you to sign documents online or through its mobile app, saving you time.

3
Receive Your Funds

USAA typically disburses the funds within two business days, provided all documents are received and verified. While USAA frequently provides prompt approval status updates, there may be instances where the company requires additional information, potentially extending the timeline.

The process, from application to disbursement, is designed to be as smooth and efficient as possible. By following these steps, you'll be well on your way to securing a personal loan from USAA.

What to Do if You’re Denied

Getting denied a personal loan can be a setback, but it's not the end of your financial journey. There are several steps you can take to move forward:

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If your loan application with USAA doesn't work out, remember that it's an opportunity to reassess and strengthen your financial health. This proactive approach can open up new paths to achieving your financial goals.

Frequently Asked Questions About USAA as a Personal Loan Lender

Navigating the specifics of a USAA personal loan can be easier with the right information at your fingertips. MoneyGeek addressed some common questions to help you learn more about USAA's personal loan options.

Does USAA have restrictions on how you can use your funds from a personal loan?
What is the minimum credit score requirement for a USAA personal loan?
How long does USAA take to approve a personal loan?
Does USAA have a mobile app?
Is a USAA personal loan secured or unsecured?
How much can I borrow using a USAA personal loan?
What fees will I encounter with a USAA personal loan?
How does applying for a USAA personal loan affect my credit score?
Does USAA offer an autopay discount for personal loans?
Can you have co-signers on a USAA personal loan?

About Christopher Boston


Christopher Boston headshot

Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.

Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.


sources
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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.