Veterans looking for a little extra cash flow can choose from a range of lenders who want their business. The best veteran loans offer special perks for military service, but online lenders might offer additional discounts for autopay.
When shopping for a personal loan, it’s important to compare multiple lenders before submitting a loan application. Consider what mix of benefits and discounts are available to former and active-duty military members, as well as what loan terms and APR will work best for your unique financial needs.
- What is a veteran loan?
- Lenders that exclusively work with veterans
- Best veteran loans for borrowers with good credit
- Lenders for veterans with bad credit
- What are the requirements to get a VA loan?
- How to apply for personal loans
- Financial resources for veterans
What is a veteran loan and how does it work?
Veteran loans are personal loans suited for military service members. These loans are flexible and can be used for a variety of purposes, such as relocation for a job, car repairs, or medical expenses. Both active-duty service members and veterans can qualify, and military spouses may be eligible as well.
Credit union personal loans for veterans often come with benefits and discounts for your service. For instance, Navy Federal Credit Union offers zero service fees and an APR discount worth 0.25 percentage points for active-duty and retired military members.
While banks and online lenders may not offer the same benefits as a military-specific credit union personal loan, they are often able to provide autopay discounts.
To qualify for a veteran loan, you’ll typically need to meet certain requirements, including:
- A record of employment: Your job history and proof of military service will be assessed for eligibility. Lenders may ask for different verification checks, such as W-2s or a certain number of consecutive days of active service, to confirm your status as a veteran.
- Minimum credit score: Credit score requirements will vary by lender, but having a good credit score (a FICO score of 670 or higher) will help you lock in the best rates.
- Minimum income: Many lenders have minimum income requirements to ensure that you can comfortably afford your monthly loan payments. For example, to qualify for a personal loan from Discover, you’ll need a household income of at least $25,000.
To get a veteran loan, you’ll shop around and compare lenders, fill out an application with any required paperwork included, and wait for an approval decision. Once you’re approved, you’ll sign a loan agreement and receive your funds. Funding a personal loan usually takes a few days, but some lenders can release funds in as little as 24 hours.
Lenders that exclusively work with veterans
The following two lenders cater specifically to veterans and military families. In addition to personal loans, these lenders also offer checking, savings, and credit cards, making them a simple starting point for many financial services.
Navy Federal Credit Union
Navy Federal Credit Union offers membership to veterans, active-duty military members, Department of Defense employees, and their families. Because Navy Federal is a not-for-profit institution, they’re able to provide lower rates and fees than traditional banks.
With a personal loan from Navy Federal, you can borrow $250 to $50,000 with terms from three to six years. But if you use your loan specifically for home improvements, you’ll have up to 15 years to repay your loan.
Because credit unions tend to have more lenient eligibility requirements than banks, you’re more likely to be approved for a loan even if your credit score is less than ideal.
USAA
USAA Federal Savings Bank serves active-duty military members, veterans, National Guardsmen and Reservists, ROTC cadets and midshipmen, officer candidates, military spouses, and children of current USAA members.
You can borrow up to $100,000 with a personal loan from USAA and repay your loan over one to seven years.
Best veteran loans for borrowers with good credit
If you have good-to-excellent credit, it’s important to compare as many lenders as possible to lock in a loan with a low annual percentage rate (APR) and favorable terms. Here are two Credible partner lenders that work with borrowers with good credit.
LightStream
LightStream offers loans ranging from $5,000 to $100,000 with repayment terms from two to seven years. You could have up to 20 years to repay your loan if you use your funds for home improvement projects. If you’re approved for a loan from LightStream, you could receive your money as soon as the same business day.
Although LightStream doesn’t offer specific benefits for veterans, you can get a rate discount of 0.50 percentage points by enrolling in autopay.
- Interest rates: 7.49% to 24.49% (with autopay); fixed
- Loan amounts: $5,000 to $100,000
- Loan terms: 2 to 12 years
- Minimum credit score: Does not disclose
- Loan types: Home improvement, debt consolidation, medical expenses, weddings, auto loans, and more; unsecured
- Funding time: As soon as the same day
- Eligibility: Must have good credit; must have sufficient income to support your existing debts and loan amount; must have a valid Visa or Mastercard
- Fees: None
- Cosigner acceptance: No; co-borrowers accepted
- BBB rating: A+
Pros:
- Fast funding
- High maximum loan amount
- Long repayment terms
- No fees
Cons:
- Only approves borrowers with good-to-excellent credit
- High minimum loan amount
- Doesn’t disclose many eligibility requirements
- Must have a Visa or Mastercard
SoFi
SoFi offers borrower perks like free financial planning or career coaching. When you get a personal loan through SoFi, you can borrow between $5,000 and $100,000 and use the funds for anything from home improvement to family planning. Repayment terms range from two to seven years, and you could receive your loan as soon as the same day of approval.
SoFi provides deferment for active-duty borrowers and a 6% interest rate cap under the Servicemembers Civil Relief Act (SCRA).
- Interest rates: 8.99% to 25.81%; fixed
- Loan amounts: $5,000 to $100,000
- Loan terms: 2 to 7 years
- Minimum credit score: Does not disclose
- Loan types: Credit card consolidation, home improvement, wedding, relocation, vacation, medical expenses; unsecured
- Funding time: As soon as the same day you sign your loan agreement
- Eligibility: Must be at least 18 years old (or age of majority in your state); must be a U.S. citizen, eligible permanent resident, or non-permanent resident alien; must reside in a state where SoFi is authorized to lend; must be employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days
- Fees: None
- Cosigner acceptance: No; co-borrowers accepted
- BBB rating: A+ (not BBB-accredited)
Pros:
- Large loan amounts
- Fast funding
- No fees
Cons:
- High minimum loan amount
- Doesn’t disclose minimum credit score
- Doesn’t accept cosigners
Lenders for veterans with bad credit
While having poor or fair credit (a FICO score of 669 or lower) can affect the interest rates you’re offered, it doesn’t mean you won’t be able to qualify for a personal loan.
The following Credible partner lenders offer personal loans for veterans with bad credit. Just keep in mind that you’ll likely have to settle for a higher interest rate than borrowers with good or excellent credit.
Avant
Avant accepts borrowers with credit scores as low as 550, making it an accessible option if you’re still working toward building your credit. Avant personal loans range from $2,000 to $35,000 with repayment terms from two to five years. If you’re approved, you could receive your funds as soon as the next business day.
For military borrowers with bad credit, Avant may be a good choice. If you’re eligible under the SCRA, you could have the interest rate on your loan capped at 6% while you’re serving.
- Interest rates: 9.95% to 35.99%; fixed
- Loan amounts: $2,000 to $35,000; minimum of $6,400 in Massachusetts
- Loan terms: 1 to 5 years
- Minimum credit score: 580
- Loan types: Emergency, debt consolidation, medical, home improvement; secured and unsecured
- Funding time: As soon as the next business day after approval
- Eligibility: Must be at least 18 years old (19 if you live in Alabama); must have a personal bank or credit union account; must be able to provide proof of income and identity; must not live in HI, MA, ME, NY, VT, or WV; must have a monthly income of at least $1,200
- Fees: Administration fee of up to 4.75%; late fee of $25; returned payment fee of $15
- Cosigner acceptance: No
- BBB rating: A
Pros:
- Fast funding
- Wide range of repayment terms
- No prepayment penalties
- Convenient mobile app
Cons:
- Charges an administration fee
- Low maximum loan amount
- Not available in all states
- Doesn’t accept cosigners
- Doesn’t disclose many eligibility requirements on website
- Doesn’t offer discounts
LendingClub
LendingClub offers loans up to $40,000 with three- or five-year repayment terms.
Minimum credit requirements start at 600 for LendingClub personal loans. If you’re struggling to get approved, or if you want to lock in a lower interest rate than you’d get on your own, LendingClub is one of the few lenders that allows cosigners (or co-borrowers) on personal loans. Just keep in mind that if you were to default on payments, your cosigner would be on the hook for repaying your loan.
Thanks to the SCRA, qualifying military members can get a 6% rate cap on LendingClub loans while on active duty.
- Interest rates: 9.57% to 36.00%; fixed
- Loan amounts: $1,000 to $40,000
- Loan terms: 3 to 5 years
- Minimum credit score: No minimum credit score
- Loan types: Debt consolidation, home repairs, medical bills, and more
- Funding time: 2 to 7 business days after approval
- Eligibility: Be a U.S. citizen or resident; be at least 18 years old; have a verifiable bank account
- Fees: Origination fee of 3% to 6%; no prepayment penalties; late fees may apply
- Cosigner acceptance: No; accepts co-borrowers
- BBB rating: A
Pros:
- No minimum credit score requirement
- May be approved within a few hours
- Allows joint loans
- Low minimum loan amount
- Late payment grace period
Cons:
- Charges an origination fee
- Doesn’t accept cosigners
- Few repayment term options
- Relatively longer time to funding
What are the requirements to get a VA loan?
A VA loan is a mortgage for qualifying military members and eligible spouses. These loans are guaranteed by the U.S. Department of Veterans Affairs and allow qualifying borrowers to get a home without a down payment or private mortgage insurance.
To be eligible for a VA loan, you’ll have to meet the following criteria:
- Minimum military service: You must meet minimum active-duty service requirements. For example, current military members must have 90 consecutive days of service, while veterans from 1990 to present-day must have served 24 continuous months or 90 days of active duty.
- Valid COE: You must have a valid Certificate of Eligibility (COE) from the government. You can get a COE — through your lender, on eBenefits, or through the VA’s download form 26-1880 — if you didn’t receive a dishonorable discharge and meet minimum active-duty service requirements.
- Sufficient credit and income: You’ll need to have enough income and an acceptable credit score to meet your lender’s specific requirements.
How to apply for veteran loans
Both veterans and active-duty military members should follow these steps to apply for veteran loans.
Review your credit score
Your credit score will affect the interest rates you qualify for. You can check your score through your credit card issuer, or by requesting a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) online at AnnualCreditReport.com.
A good credit score is considered 670 or higher, but you can still qualify for loans with fair or poor credit — just be aware that you’ll likely be offered a higher interest rate than borrowers with good or excellent credit.
Gather all required documents
You’ll need to provide proof of military service, identity, income, and employment. Typically, you’ll need your driver’s license or another government-issued photo ID, COE, bank statements, and recent pay stubs or tax returns.
Watch out for scams
Do your research before you apply for a loan and only borrow from vetted lenders.
Payday lenders sometimes offer veterans “special deals,” only to charge interest rates over 100%. You’re better off opting for a loan with a higher APR from a reputable institution.
Prequalify with multiple lenders
Prequalifying with several different lenders gives you a more accurate idea of what rates and terms you’ll qualify for. Prequalifying typically involves a soft credit pull, which doesn’t affect your credit score.
Apply for a loan
Once you’ve found a lender, you’ll fill out an application. Most lenders let you apply online, and some even offer same-day approvals.
For veterans with less-than-excellent credit, consider applying with a cosigner. Choosing a cosigner with a good credit history and steady income can boost your chances of getting approved — or get you a lower APR than you’d get on your own.
You should be able to comfortably afford your payments each month even if you apply with a cosigner or co-borrower. Otherwise, you risk damaging your cosigner’s credit as well as your own.
Financial resources for veterans
Before you apply for a personal loan, it’s wise to exhaust all of your other options to avoid taking on unnecessary debt. As a veteran, you may be eligible for grants, low-interest loans, and other financial support. Check out the following resources to find programs, benefits, and perks specifically for veterans.
Department of Veterans Affairs
The VA.gov website lets you manage your VA benefits online, including healthcare, insurance, and education. You can also request your COE through the VA when you’re ready to find a mortgage lender for a VA home loan. Most VA benefits are available to active-duty, veterans, Coast Guard, and National Reserve members.
2-1-1
Calling 2-1-1 is your shortcut to accessing support, such as housing, healthcare, transportation, and meals. When you call 2-1-1, local operators refer you to the right agency to get you the assistance you need. You don’t have to be a veteran to use 2-1-1, but the network can connect you to veterans benefits in your area.
Veterans of Foreign Wars
Better known as the VFW, this organization advocates for veterans and their families in times of financial hardship. If you’re going through hardship, you can apply for a grant from the VFW. Unlike a personal loan, grants don’t need to be repaid, and the VFW will work directly with your creditors.
If you want to join the VFW, you need to be currently serving or honorably discharged, with service in a foreign war or hostile waters.