The 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
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.