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Here’s a breakdown of how we reviewed and rated top personal loan providersThe Best Personal Loans for Veterans
Before compiling our list of the best personal loans for veterans, we compared over 20 lenders and rated each one based on factors such as customer experience, annual percentage rate (APR) range, repayment terms offered and lender reputation. The standouts are as follows:
- LightStream: Our top pick
- Navy Federal: Best for military members
- SoFi: Best customer service
- PenFed: Best for small loans
- Discover: Best for low rates
- Upstart: Best for bad credit
- U.S. Bank: Best for bank switchers
- Upgrade: Best discounts
- Wells Fargo: Best for in-person service
LightStream
Our Top Pick
Company Overview
LightStream offers loans with flexible repayment terms, quick funding and a low APR range (7.49% to 25.49% as of this writing) compared to some of its competitors. Plus, if you can find a lower rate with a different lender, LightStream offers a 0.10 percentage point lower rate for a loan with the same terms through its Rate Beat Program. However, a potential downside is that the lender only approves borrowers with good to excellent credit.
Pros & Cons
LightStream Loans for Veterans
LightSteam doesn’t offer any special perks to veterans, but it still may be an excellent choice for those with good credit or better since it offers low APR compared to other financial institutions. To qualify, you need at least five years of significant credit history.
Navy Federal Credit Union
Best for Military Households
Company Overview
Navy Federal Credit Union is a financial institution that offers secured and unsecured personal loans to current and retired armed forces members and their families. Once approved, you can receive funds as soon as the same business day.
Pros & Cons
Navy Federal Credit Union Loans for Veterans
Navy Federal offers a low starting rate for loans up to 36 months. Active duty, retired service members or veterans who receive an allotment or direct deposit from a military pay source may qualify for a 0.25% rate discount, according to a customer service representative.
SoFi
Best Customer Service
Company Overview
Borrowers with good credit at SoFi can qualify for personal loans with large loan amounts and no origination or prepayment penalties. Customer service reviews on consumer review platform Trustpilot are mostly positive. Some of the better reviews cited good rates and a seamless loan application process.
Pros & Cons
SoFi Loans for Veterans
SoFi offers loans from $5,000 to $100,000 with terms ranging from 24 to 84 months. While it doesn’t offer specific perks for veterans, loans come with unemployment protection. You may qualify for unemployment assistance if you lose your job and your loan has been in good standing for at least nine months.
PenFed Credit Union
Best for Small Loans
Company Overview
PenFed offers unsecured loans with one of the lowest minimum loan amounts in the personal loan space — $600. It may be a solid option if you need to borrow money to cover a variety of small expenses. The lender doesn’t charge origination fees or prepayment penalties. If approved, you must become a member of the credit union before accepting the loan.
Pros & Cons
PenFed Loans for Veterans
Your military service qualifies you for membership at PenFed and its loans ranging from $600 to $50,000. Its APR range is low in comparison to some other lenders. While you don’t have to be a member to apply, you must become one before accepting a loan offer.
Discover
Best for Low Rates
Company Overview
Discover offers one of the lowest APR ranges on our list, from 7.99% to 24.99% as of this writing. Plus, it doesn’t charge an origination fee. This lender might be a solid choice if you’re looking to consolidate debt because it can streamline the process by sending funds directly to your creditors. One downside, however, is this lender does not offer joint loans.
Pros & Cons
Discover Loans for Veterans
While Discover doesn’t offer any unique perks for veterans, it does have relatively low rates and has free access to your FICO score and online privacy protection. Although Discover doesn’t list many specific eligibility requirements, you need at least an annual household income of $25,000 to qualify.
Upstart
Best for Bad Credit
Company Overview
Upstart offers personal loans that are accessible to veterans with poor or fair credit. It’s also possible to qualify if you have minimal credit history — the minimum credit score requirement is 300. That said, you’re not eligible for a loan with Upstart if you’ve had a bankruptcy listed on your credit reports in the last 12 months.
Pros & Cons
Upstart Loans for Veterans
The lender does not offer any specific benefits exclusively to veterans, but Upstart offers personal loans ranging from $1,000 to $50,000 with a low starting APR. To qualify, you must meet the debt-to-income (DTI) requirement, have no current delinquencies on your credit report, no public records or bankruptcies listed within the past year and have fewer than six credit inquiries in the last six months.
U.S. Bank
Best for Bank Switchers
Company Overview
U.S. Bank provides personal loans to customers in 26 states. This lender is best for existing U.S. Bank customers or those who want to become customers because a banking relationship provides potential access to higher loan amounts and a lower minimum credit score requirement.
Pros & Cons
U.S. Bank Loans for Veterans
U.S. Bank’s website doesn’t mention specific lending requirements other than needing a credit score of 800 to qualify for its lowest advertised rate. This lender might be a good choice for you as a veteran if you’re an existing U.S. Bank customer or plan on becoming one. The bank offers to waive its monthly fees on checking accounts to military members and veterans.
Upgrade
Best Discounts
Company Overview
Upgrade offers personal loans accessible to borrowers with less-than-perfect credit profiles. It also offers several rate discounts.
Pros & Cons
Upgrade Loans for Veterans
Upgrade doesn’t list any specific credit or income requirements for personal loans on its website. Basic requirements are that you must have a bank account, be a U.S. citizen at least 18 or 19 years old and have a valid email address. The lender offes an interest rate discount if you take out the loan and later are deployed to active-duty military service.
Wells Fargo
Best for In-Person Service
Company Overview
Wells Fargo offers personal loans with no fees and a high maximum loan amount. The bank allows existing customers with accounts that are 12 months or older to apply online or at a local branch — the option to apply in person is beneficial for applicants who prefer speaking with a banker face to face. Customers who enroll in autopay and make payments from an eligible Wells Fargo account may qualify for an interest rate discount.
Pros & Cons
Wells Fargo Loans for Veterans
Wells Fargo offers personal loans with no origination fees and a variety of repayment terms. Qualified applicants can borrow from $3,000 to $100,000. Its APR range is on the lower side compared to some other lenders. Veterans can qualify for fee-free checking accounts and free access to any bank’s ATMs worldwide.
When You Might Consider a Personal Loan
Before deciding on any loan, it’s wise to consult a credit counselor or financial adviser who can help you assess whether it’s a good move based on your unique financial circumstances.
Below are some situations where taking out a loan may be a good idea:
- Home improvements: Using a personal loan to tackle a home renovation project could help build equity in your home.
- Moving expenses: A personal loan might be a good option if you need money to cover moving costs.
- Debt consolidation: Taking out a loan to refinance high-interest debt may help you save thousands of dollars on interest.
Tips for Choosing the Right Personal Loan as a Veteran
Before taking out a loan, review your budget to see if you can afford the monthly payments. A personal loan calculator can help you estimate your loan’s total borrowing costs. If you can’t afford a loan, consider alternatives, such as applying for a grant for veterans or other financial assistance programs.
Here are some factors to consider while comparing options from multiple lenders:
- Repayment terms: Longer repayment terms often come with lower monthly payments, but you pay more interest over the life of the loan. Shorter repayment terms, on the other hand, usually have higher monthly payments, but you pay less in total interest. Select a lender that offers a term that fits your budget.
- Compare APRs: Looking at a loan’s APR is one of the best ways to assess potential borrowing costs since it includes interest and any fees a lender charges.
- Loan amounts: Select a lender that offers your desired loan amount.
- Eligibility requirements: Review a lender’s eligibility requirements to ensure you meet its criteria before applying.
The Bottom Line
Applying for a personal loan as a veteran can make sense in certain situations, such as consolidating debt or paying for a major life event. But before you take one out, review your budget to see if you can afford the monthly payments. You could also explore alternative options like grants for veterans.
Frequently Asked Questions About Personal Loans for Veterans
No, the Department of Veterans Affairs (VA) doesn’t offer personal loans. However, it does offer VA home loans to eligible veterans. These programs generally help veterans qualify for more favorable rates.
Minimum credit score requirements vary by lender. Generally, the higher your score, the better your approval odds and chances of qualifying for a more favorable APR.
Whether it’s difficult or easy to get approved for a personal loan depends on individual factors, such as your credit score and income. You’ll likely find qualifying for a personal loan easier if you have a stable income and good credit. If you have poor credit, on the other hand, your approval chances will generally be lower and your borrowing options more limited.
The maximum amount you can borrow depends on the lender. Some lenders, such as BHG Money, allow you to request up to $200,000. That said, the exact amount you can borrow will depend on several factors, such as your credit score, income and monthly debt load.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
Jerry Brown is a freelance personal finance writer who lives in New Orleans, Louisiana. He covers a range of personal finance topics, including credit, personal loans, home equity loans, and student loans. He’s written articles for several major publications, like Bankrate, Investopedia, and Forbes Advisor.
Kelly is an editorial leader and collaborator with over 13 years of experience creating and optimizing data-driven, reader-focused digital content. Before joining our team, Kelly was the cross-niche editor and Branded Content Lead at personal finance and fintech site Finder.