USAA personal loans are designed for military personnel as well as veterans and their families. USAA was established in 1922 and is currently home to more than 13 million clients. This USAA personal loan review will explain the way USAA compares against other banks, and assist you in determining whether it's the right personal loan option for you.
Full USAA personal loan review
The personal loan is a suitable choice for individuals who require fast access to a personal loan of up to $100,000 with no need for an application or early repayment charges.
Pros
- There are no application or prepayment charges.
- Discount on the interest rate for auto-pay
- Co-borrower options
Cons
- Only veterans, military members, and their families are eligible.
- Higher payment terms mean that longer payment terms are required. personal amount of loans
- It is not suitable to teach higher education.
Top perks
There are no prepayment or application fees: USAA does not charge fees for loan applications or prepayment penalties for early payments. Certain banks charge fees for loan origination which typically range between one and eight percent. There are no prepayment fees, which means that customers can repay their loan quicker at any time, without penalty.
Interest rate discount when you use auto payments: For borrowers who sign up for autopay, they'll get an 0.25 percent discount off the rate of interest they are charged.
Co-borrower options: USAA offers borrowers to join a co-borrower with a personal loan. If you're a poor credit holder it could be challenging to get an interest rate that is competitive. securing a co-borrower who has higher credit scores can aid you in obtaining a loan and possibly obtain a higher interest rate.
Receive funds fast Apply online: The process is only a couple of minutes. If accepted, borrowers can be paid as little as 24 hours following the closing.
What can be improved?
Only veterans, military personnel, and family members are eligible. The eligibility criteria to receive USAA personal loans is restricted to:
- The Active Duty, National Guard, or in the Reserves
- Veterans who have served with honor
- Cadets or Midshipmen
- Parents and spouses of USAA members
Higher payment terms require greater personal amounts for loans. Loan repayment terms vary from 12 to 84 months. The term depends on the amount that is borrowed. Credits that extend beyond 60 months (five years) need to be able to meet the higher requirements for credit scores.
- A 12-to-36-month duration is required for personal loans that are $2,500 or more
- A 48-month loan is required. personal loan of at least $5,000
- A 60-month period requires a personal loan of at least $10,000 or more
- A 72-month period requires personal loans of at least $15,000
- A term of 84 months will require personal loans of at least $20,000
The loan cannot be used to fund higher education. USAA puts limitations on how the personal loan may be utilized. The personal loans offered by USAA cannot be used to pay for the cost of higher education.
There is no prequalification for loans. The borrower is not able to look for what they might qualify for before making an application for a loan. This leads to a difficult credit score inquiry that could lower your credit score. The site only has the loan calculator. Check if you've shopped through the various options and would like to apply for the USAA personal loan prior to applying. A lower credit score simply to find out the rate you could be charged is a bad idea when taking loans.
How do you qualify for a USAA personal loan?
USAA does not provide on its website the complete requirements to be able to get loans. The most important criteria are:
- Do you need to become a USAA member
- You can open a bank account through USAA
- As with other financial institutions, customers will have to be able to meet specific criteria for their credit score and income in order to be eligible for the best rates
The application process
USAA offers a simple personal loan application procedure.
- The applicants fill out an application online
- If the members' request is approved, they will be notified of their interest rate right away
- The borrower will decide on the conditions of their loan
- Borrowers will receive their money into the account of their USAA banking account as fast as 24 hours following the loan's closing
Other options to be considered
Prior to taking out a loan, it's essential to conduct your research and determine the most affordable rate. Here are some additional financial institutions you should consider.
- Marcus by Goldman Sachs(r) provides loans upwards of $40,000, based upon your credit rating. Marcus offers you the option of up to six years to pay back the loan.
- Avant offers personal loans to people with a low credit score. The minimum credit score is as low as 580. Customers can obtain loans starting as low as $2,000 up to as high as $35,000.
It is a USAA personal loan that may be perfect for you if you:
- If you are a military veteran, service member, or a member of your family and are eligible to be a member of the USAA. USAA membership
- You've already used USAA's other products and you want to organize all your accounts financial in one location
- You'd like to receive funds in a short time
- You are required to take out loans of up to $100,000.