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USAA Personal Loans Review

USAA Personal Loans Review

You’ve probably seen USAA ads popping up all over the web or heard about them from family members in the military. But what is USAA? And what can they offer you in terms of personal loans? You’re in the right place to get answers. This USAA personal loans review will give you the lowdown on all things USAA lending. We’ll discuss eligibility requirements, loan amounts, terms, interest rates, fees, application processes, and more. By the end, you’ll know whether USAA personal loans are a smart borrowing choice for you or if you’re better off looking elsewhere. Sound good? Then let’s dive in and see if USAA loans are really as military strong as their reputation claims.

USAA Personal Loans Review

Overview of USAA Personal Loans

USAA is a member-friendly insurance company and bank that provides unsecured personal loans in addition to its more well publicized insurance and banking offerings. Unsecured simply implies that USAA will not require you to provide collateral to secure the loan. These loans are disbursed in lump sums and returned according to a predetermined monthly payment schedule. Secured loans are backed by collateral. For more information on secured loans, check out our evaluation of the top home equity loans.

Personal loans typically have high annual percentage rates (APRs), making them a dangerous financial product. Personal loans, when utilized wisely, can be an excellent tool for covering unexpected or excessive needs. In the following guide, we’ll go over the benefits and drawbacks of getting a personal loan from USAA, as well as how to apply for one and what previous customers have said about the financial services company.

USAA offers personal loans to qualifying members for a variety of purposes like consolidating high-interest debt, financing home improvements, or paying for life events. They aim to provide competitive rates and flexible terms to meet your needs.

USAA personal loans range from $2,500 to $50,000 with fixed rates from 4.99% to 15.99% APR and terms from 2 to 7 years. The exact rate you’re offered will depend on factors like your credit score, income, and loan amount. USAA does not charge origination or prepayment fees for personal loans.

USAA Personal Loan Plans & Offerings

USAA provides its members with unsecured personal loans ranging from $2,500 to $100,000. A term loan provides you with an upfront lump sum payment that you then repay on a predetermined timeline. With the exception of higher education fees, borrowers can use their USAA loans for almost any reason.

Personal loans are commonly used to consolidate consumer debt, meet emergency needs, or complete remodels or major house repairs. While USAA would not consolidate your loans for you, you may utilize the loan amounts to directly pay down your outstanding bills.

A personal loan may also be useful if you have an unexpected expense. Use our finest emergency loan evaluation to choose the correct provider for you.

USAA Personal Loans Pricing

USAA provides reasonable annual percentage rates (APRs) on personal loans ranging from 7.85% to 18.27%. These rates include a 0.25% auto-payment discount. Many lenders charge loan origination costs ranging from 1% to 5% of the total loan amount, whereas USAA does not. For a $100,000 personal loan, you may save roughly $5,000 in costs compared to other lenders.

Some lenders additionally levy a prepayment or early payment fee, which allows them to reclaim some of the income lost through early loan repayments. USAA does not impose prepayment penalties, allowing you to pay off your loan early without increasing the overall cost of borrowing. However, USAA charges a late fee equivalent to 5% of the missing payment amount.

USAA Personal Loans Financial Stability

USAA is unlikely to fail anytime soon, according to credit rating service AM Best. It has reaffirmed USAA’s financial strength rating of A++ (Superior). AM Best determined its ranking by reviewing USAA’s balance records, business procedures, and other aspects connected to business longevity.

USAA Personal Loan Accessibility

Applying for a USAA personal line of credit is a simple process. In this section, we’ll go over your chances of qualifying for a personal loan, USAA contact information, and evaluations from previous borrowers.

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USAA exclusively offers personal loans to active USAA members. While USAA does not disclose exact loan qualifying requirements, you should have a credit score of at least 640. USAA may accept lower credit scores, but less-qualified customers must pay higher interest rates. You may also be unable to qualify for the full loan amount you seek. Don’t allow your credit score prevent you from taking out a personal loan. Use our guide to the top personal loans for bad credit to locate the ideal lender for your needs.

When considering your application, USAA will consider your income as well as your debt-to-income (DTI) ratio. DTI simply divides your total monthly loan payments by your monthly income. For example, if you make $10,000 per month and have $3,000 in monthly debt payments, your DTI is 30%. Lenders normally prefer borrowers with a DTI of less than 43% when making a loan.

USAA Personal Loan Pros

Ability to get money swiftly.

When USAA authorizes your loan, the funds will be transferred to your bank account within 24 hours on ordinary business days. This funding speed exceeds that of several other personal loan providers.

Joint financing are available.

USAA permits qualifying borrowers to sign a loan with a co-borrower. Co-borrowers differ from cosigners in that they are also granted access to the borrowed funds. They, like cosigners, are jointly responsible for debt repayment. If you have a low credit score or intend to use the funds jointly, such as for a shared vehicle, you may choose to co-borrow.

Various loan repayment options.

USAA has more flexible repayment arrangements than many other lenders. Borrowers can choose from several repayment schemes, each with its own minimum loan amount.

One to three years: $2,500.
Four years: $5,000.
Five years: $10,000.
Six years: $15,000.
Seven years: $20,000.
Remember that these are the minimum loan amounts. If you qualify, you might be authorized for up to $100,000, making USAA an excellent choice for both small and large personal loans. Plus, with USAA, you can pay off your loan early without incurring a prepayment penalty.

USAA Personal Loan Cons

You must be a USAA member to apply.

Only USAA members may apply for personal loans from the financial organization. The following individuals meet the USAA membership requirements:

  • Military members
  • Honourably discharged veterans
  • Members’ spouses and their children

Hard credit checks only.

USAA, unlike other lenders, does not provide a prequalification process for personal loans. This implies that you will only obtain available loan conditions after USAA conducts a rigorous credit check, which will appear on your credit report and may reduce your credit score. USAA has a loan repayment calculator on their website. However, without knowing your APR and loan limit, you can only get a basic notion of how your repayment plan would look.

As a result, you should consider other lenders before applying for a loan with USAA. Getting pre-approved with other lenders will give you an idea of the loan conditions that USAA may offer you.

Cosigners are not permitted.

USAA does not allow cosigners. If you’re concerned that your low credit may prevent you from securing a loan, ask someone to sign on as a co-borrower with you. Co-borrowers, like cosigners, are jointly liable for debt repayment. However, cosigners do not have the right to use the loaned funds, whereas coborrowers do.

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