Best personal loans for the military of August 2024

Publish date: 2024-06-06

Whether you’re a service member who needs help with moving costs or are a veteran transitioning back to civilian life, you have many options for getting financial assistance. You may be eligible for grants, interest-free loans, career assistance programs, and/or low-interest loans from nonprofit financial providers.

It may be quick and easy to get a personal loan from an online lender, especially if you have good credit. But some lenders are a better fit than others for military members and veterans. To help you narrow down your options, our experts evaluated loans for the military based on rates, fees, customer experience, and more.

Fox Money rating

Fixed (APR)

8.98% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

Overview

LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)

While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.

Loan amount

$1,000 to $40,000

Fees

Origination fee

Eligibility

Available in all 50 states

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

Within 3 days

Loan uses

Debt consolidation, paying off credit cards

Fox Money rating

Fixed (APR)

8.99% - 29.99%1

Loan Amounts

$5000 to $100000

Min. Credit Score

Does not disclose

Overview

SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.

The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.

Loan Amount

$5,000 to $100,000

Repayment terms

2 - 7 years

Fees

Option to pay an origination fee in exchange for a lower rate

Discounts

Autopay, direct pay

Eligibility

Available in all states

Min. income

Does not disclose

Customer service

Phone, email, live chat

Soft credit check

Time to get funds

Typically within a few days, given approval and bank account verification, but sometimes within the same day

Loan uses

Solely for personal, family, or household uses

Fox Money rating

Fixed (APR)

8.99% - 35.99%

Loan Amounts

$2000 to $50000

Min. Credit Score

Overview

Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.

Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).

Loan amount

$2,000 to $50,000

Fees

Origination fee, late fee, unsuccessful payment fee, check processing fee

Eligibility

Available in all states except DC, IA, VT, and WV

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as 1 to 3 business days after successful verification

Loan uses

Credit card refinancing, debt consolidation, home improvement, and other purposes

Fox Money rating

Fixed (APR)

9.95% - 35.99%

Loan Amounts

$2000 to $35000

Min. Credit Score

Overview

Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.

Loan amount

$2,000 to $35,000**

Fees

Origination fee, late fee, dishonored payment fee

Eligibility

Available in all states except HI, IA, MA, ME, NY, VT, and WV

Min. income

$1,200 monthly

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)

Loan uses

Debt consolidation, emergency expense, life event, home improvement, and other purposes

Repayment terms

2 to 5 years

Fox Money rating

Fixed (APR)

9.99% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

Overview

Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.

However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.

Loan amount

$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)

Repayment terms

2 to 7 years

Fees

Origination fee

Discounts

Autopay and direct pay

Eligibility

Available in all states

Min. income

Does not disclose

Customer service

Soft credit check

Time to get funds

1 business day

Loan uses

Credit card refinancing, debt consolidation, home improvement, major purchase, other

Fox Business does not make or arrange loans.

When you need extra cash, a personal loan can fit the bill, especially if you need the money quickly. The best personal loans for service members and veterans come with low rates and fees, fast funding, flexible terms, and superb customer support. It’s a good idea to prequalify, if possible, to see the rates and terms you may qualify for before applying. Here are our top picks.

Tip

Many lenders offer a prequalification process that gives you estimated loan amounts, rates, and terms without hurting your credit score. Formally applying for a loan, however, can hurt your score, and your final rate may be different than the estimate.

Navy Federal offers personal loans with interest rates as low as 8.99% to 18% (current as of March 2024), repayment terms up to five years, and loan amounts up to $50,000. (Personal loans for home improvement are available up to $150,000 with up to 15-year repayment terms.) It also offers personal loans secured by your Navy Federal savings account or Navy Federal CD at even lower rates and with no credit check.

If you’re just starting your naval career, Navy Federal offers very-low-rate Career Kickoff loans for military academy juniors and seniors, and ROTC and OCS/OTS officers and candidates. If you qualify, APRs are 1.25% and 2.99%, respectively; loan terms are available up to five years; and maximum loan amounts are $32,000 and $25,000, respectively. Plus, payments may be deferred up to 90 or 180 days, depending on loan type.

You’ll need to apply over the phone or at a physical branch location, but once approved, loan funds are typically available that day. Membership is available to active duty, retired, and veteran service members in the armed forces and their families.

Related: Best home improvement loans

USAA offers a wide range of personal loans, available from $1,000 up to $100,000, with repayment terms from one to seven years. APRs start at 10.14%, but don’t exceed 18.51% (current as of March 2024). Note that, like any personal loan, you’ll need to qualify, and USAA’s $100,000 personal loan will only be available to highly qualified applicants.

USAA membership is generally available to active, retired, and veteran military members and their families.

Best for high close rates if pre-approved

Best Egg

Fox Money rating

Est. APR

8.99 - 35.99%

Loan Amount

$2000 to $50000

Min. Credit Score

600

Pros and cons

Secured loans available

Low minimum income requirement

Scored second in J.D. Power's Consumer Lending Satisfaction Study

Funds in 1-3 business days

High close rate on loans through Credible platform

Origination fees

No discounts

Not available in DC, IA, VT, or WV

More details

Overview

Loan amount

$2,000 to $50,000

Fees

Origination fee, late fee, unsuccessful payment fee, check processing fee

Eligibility

Available in all states except DC, IA, VT, and WV

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as 1 to 3 business days after successful verification

Loan uses

Credit card refinancing, debt consolidation, home improvement, and other purposes

Best overall

SoFi

Fox Money rating

Est. APR

8.99 - 29.99%1

Loan Amount

$5000 to $100000

Min. Credit Score

Does not disclose

Pros and cons

No fees required

Large loan amounts available

Autopay and direct pay discounts

Same day funding

Long loan terms available

Good credit required

5,000 minimum loan amount

More details

Overview

Loan Amount

$5,000 to $100,000

Repayment terms

2 - 7 years

Fees

Option to pay an origination fee in exchange for a lower rate

Discounts

Autopay, direct pay

Eligibility

Available in all states

Min. income

Does not disclose

Customer service

Phone, email, live chat

Soft credit check

Time to get funds

Typically within a few days, given approval and bank account verification, but sometimes within the same day

Loan uses

Solely for personal, family, or household uses

Best for fair credit

Upgrade

Fox Money rating

Est. APR

9.99 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

600

Pros and cons

Fair credit borrowers eligible

Autopay and direct pay discounts

Can fund in as little as 1 business day

Mobile app

Secured loans available

High maximum origination fee

Cosigners not accepted on home improvement loans

Low J.D. Power ranking

More details

Overview

However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.

Loan amount

$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)

Repayment terms

2 to 7 years

Fees

Origination fee

Discounts

Autopay and direct pay

Eligibility

Available in all states

Min. income

Does not disclose

Customer service

Soft credit check

Time to get funds

1 business day

Loan uses

Credit card refinancing, debt consolidation, home improvement, major purchase, other

Best online experience

LendingClub

Fox Money rating

Est. APR

8.98 - 35.99%

Loan Amount

$1000 to $40000

Min. Credit Score

660

Pros and cons

Mobile app

Low minimum income requirement

High close rate on loans made through Credible

Available in all states

Origination fee

No discounts

Funding not as fast as some competitors

More details

Overview

Loan amount

$1,000 to $40,000

Fees

Origination fee

Eligibility

Available in all 50 states

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

Within 3 days

Loan uses

Debt consolidation, paying off credit cards

Best for all credit types

Avant

Fox Money rating

Est. APR

9.95 - 35.99%

Loan Amount

$2000 to $35000

Min. Credit Score

550

Pros and cons

Borrowers with bad credit considered

Funds as soon as the next business day

2-year loan terms available

No discounts offered

Origination fee

Not available in HI, IA, MA, ME, NY, VT, or WV

More details

Overview

Loan amount

$2,000 to $35,000**

Fees

Origination fee, late fee, dishonored payment fee

Eligibility

Available in all states except HI, IA, MA, ME, NY, VT, and WV

Min. income

$1,200 monthly

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)

Loan uses

Debt consolidation, emergency expense, life event, home improvement, and other purposes

Repayment terms

2 to 5 years

We evaluated the best personal loans for the military based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.

Read our full lender rating methodology for more information.

Personal loans for the military are typically unsecured loans that provide a lump sum that’s then repaid in fixed monthly installments, which include interest.

Loan amounts can range from less than $1,000 to $100,000, depending on the lender, your credit profile, and your income. Repayment terms also vary by lender and loan purpose, but generally range from one to seven years.

Related: What is a personal loan?

Tip

Some lenders, like Navy Federal, offer loans that are secured by your savings account or a CD — these loans tend to have very low rates, especially if you have bad credit.

If you’re an active duty service member, there are two laws in particular that you should be aware of.

The Military Lending Act (MLA) covers loans taken out by you, your spouse, or your eligible dependents while you’re on active duty. Lenders must limit a covered loan’s MAPR — military annual percentage rate — to no more than 36%. You also can’t be charged a prepayment penalty, in addition to other protections.

A loan’s MAPR largely mirrors its APR, which accounts for the interest rate and any upfront fees. The MAPR’s scope is slightly wider, however, and accounts for participation and application fees, which may not be considered in the loan’s APR.

Check out: Average personal loan interest rates

The Servicemembers Civil Relief Act (SCRA), meanwhile, deals with loans taken out before you became a service member. For the entirety of your time on active duty, you’re eligible to receive an interest rate reduction to a rate no higher than 6% on these loans, and the lender can’t add back in the lost interest after you leave active duty. The SCRA also covers loan products not covered by the MLA, such as auto and home loans.

Important

You can apply for an interest rate reduction under the SCRA at any time while on active duty, and up to 180 days after. But you’ll need to let your lender know in writing and provide a copy of your orders.

When comparing loans for the military, consider these factors:

Evaluate the APR: The APR allows you to compare loan options apples-to-apples, since it accounts for both the interest rate and upfront fees. In general, the lower the APR, the less you’ll pay to borrow. A good way to preview potential loan rates is to prequalify with at least a few lenders that seem like a good fit.
Compare repayment terms: Some lenders offer more repayment terms than others. Your repayment term directly affects both how much you’ll pay over the life of the loan and your monthly payment. If the APR is the same, a shorter term relative to a longer term would mean higher monthly payments, but lower total interest costs. It’s essential to pick a term with a monthly payment you’re confident you can comfortably afford for the entirety of the loan’s term.
Check funding times: Some lenders can transfer personal loan funds into your bank account as soon as the same day you’re approved for and accept your loan offer. If you need the money quickly, narrow down your options to lenders that advertise fast funding.
Determine whether you need a cosigner or co-borrower: Applying with someone who has good or excellent credit can improve your chances of approval and give you access to lower rates and higher borrowing limits. A co-borrower has equal access to the loan funds, along with responsibility for repayment, while a cosigner does not have access to the funds, but is still responsible for the loan. If you want to apply with a cosigner, limit your search to lenders that allow cosigners, as not all do.
Consider secured loan options: Some lenders offer personal loans that are secured by collateral, such as your savings account or a CD. These loans may have no credit check and tend to feature very low rates, even if you have bad credit. Just note that if you fail to repay the loan, the lender can seize your collateral to recover its loss.
Check the lender’s reputation: Look at customer reviews on third-party websites to identify potential red flags. Trustpilot and the Better Business Bureau are two websites to consider.
Consider any additional features that are important to you: If you’re in the military, you may particularly want features like mobile app payments and extended customer service hours, or the ability to change your due date. Some lenders can also offer financial resources that may be helpful to you. Consider any additional perks each lender offers before choosing your loan.

If you’re a veteran or service member looking to get a personal loan, follow the steps below.

Consider other options first: Before applying for a personal loan, consider whether you’re eligible for grants, which don’t usually require repayment, or other financial assistance programs that have lower borrowing costs. We discuss some of these alternatives in more detail below.

Check your credit: Check your credit reports for errors, and flag any you find to the appropriate bureau (or bureaus). You could potentially boost your credit score simply by fixing mistakes on your report. Visit AnnualCreditReport.com for free credit reports.

Prequalify with at least a few lenders: Choose lenders that have credit score and income requirements you can meet, and offer appealing rates and terms. Many offer prequalification directly on their websites, or through a loan marketplace.

Select the loan option that works for you: Compare personal loan quotes by looking at loan amounts, terms, rates, fees, and any other important criteria for each lender you’ve prequalified with. Once you’ve identified the best, proceed with the application. Applying will trigger a hard credit inquiry that can cause a small and temporary decrease in your credit score.

Submit the required documents: In addition to your contact information, you may need to provide proof of identity, like your driver’s license, and proof of income and employment, such as pay stubs or bank statements.

Sign your loan documents: If you’re approved, review your final loan offer. Note that it may differ from your initial rate quote, so make sure it still works for you, and read the fine print so you understand the terms. When you’re ready, sign the documents to accept the funds.

Wait for the funds: Many lenders can deposit the money directly into your bank account as soon as the same or next business day after approval, but some can take up to a week.

Learn more:

Here are some other financing options to consider.

If you’re in the military and your family is struggling to pay the bills, contact your military service relief organization to see if you’re eligible for assistance. It may provide grants or interest-free loans in addition to counseling and other resources.

You can also get help from your local Red Cross chapter, or the Family Readiness Center and the Office of Financial Readiness. Check out the National Resource Directory for additional services and programs.

Many local and national nonprofit organizations can offer low-interest loans to active duty military members and their families. For example, AAFMAA members with an eligible life insurance policy may be able to access a $5,000 personal loan at a 1.50% APR.

Operation Homefront also offers Critical Financial Assistance to eligible service members who need help with certain expenses. The American Legion and Veterans of Foreign Wars operate similar programs. To find more charities that offer financial help for military members, you can search the databases at Charity Navigator and CharityWatch.

Here are some financing alternatives specifically tailored to veterans:

If you’re a veteran looking to start a small business, you’ll find a variety of funding programs. Some examples include:

You can also contact the Small Business Administration for additional support and resources.

Related: Best startup business loans

Whether you’re struggling to find a job, need help getting training, or are just looking for career advice, the Transition Assistance Program can help.

The home loan program offered by the Department of Veterans Affairs (VA) can help you buy your first home with no down payment.

Yes; whether you’re currently serving or retired, you have loan options. If you’re an active duty service member, lenders must comply with the MLA, which means any loan offers you get must have APRs no higher than 36%.

Several lenders specialize in issuing personal loans to people in the military, as well as to veterans. In addition, you may be able to get an interest-free loan from your military service relief organization.

While poor credit (a FICO score below 580) may limit your options for personal loans, some lenders offer bad-credit loans.

It’s advisable to first check out grants and loans available from local nonprofits or your military service relief organization, though. If you can’t qualify for a personal loan, you may also consider applying with a well-qualified cosigner or co-borrower to help you get approved.

Check out: Best emergency loans for poor credit

No. The Department of Veterans Affairs does not offer personal loans. There are, however, several types of home loans that can be backed by the VA, including cash-out refinances. Keep in mind that a cash-out refinance is secured by your home, so you could lose it if you default.

Related Articles:

Meet the contributor:

Lindsay Frankel

Lindsay Frankel has been covering personal finance for six years, with particular expertise in loans, insurance, and real estate. She’s written hundreds of articles across a range of well-known outlets, including LendingTree, Investopedia, SFGate, and more. Outside of writing, she enjoys playing music and exploring nature with her rescue dog, Lucy.

ncG1vNJzZmivp6x7p7vXm6ysoZ6awLR6wqikaJ6frXquu82esGiolafAsLrApWSlp5GjwHC5yKWgrZmirnqtu8Cnqg%3D%3D

VlogBee

Best personal loans for the military of August 2024