Service members may face financial challenges as they transition from military to civilian life, but personal loans for veterans can help. A loan can be a critical source of additional support where government benefits or other services fall short. But before you borrow, make sure you compare lenders to choose the best personal loan for your financial situation.
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Lender |
Learn More |
APR |
Max. Loan Amount |
Min. Credit Score |
|---|---|---|---|---|
 |
8.99% to 29.99% | $40,000 | Not disclosed | |
 |
7.96% to 35.97% | $50,000 | 600 | |
 |
7.99% to 23.43% | $100,000 | Not disclosed | |
 |
6.50% to 35.99% | $50,000 | 300 | |
 |
7.99% to 23.99% | $100,000 | Not disclosed | |
 |
7.74% to 17.99% | $50,000 | 650 | |
 |
8.05% to 36.00% | $40,000 | Not disclosed | |
 |
7.99% to 29.99% | $50,000 | 600 | |
 |
8.99% to 35.99% | $50,000 | Not disclosed | |
 |
9.95% to 35.95% | $35,000 | Not disclosed |
Happy Money offers Payoff personal loans designed to consolidate credit card debt. It operates in all but two states and provides loans of up to $40,000. Happy Money is not a bank and instead works with lending partners that originate the loans. The California-based financial wellness company takes a psychological approach to money matters.
Upgrade offers access to personal loans, the Upgrade card with a personal line of credit, rewards checking, and credit monitoring and educational tools. Founded in 2017 in San Francisco, the firm also has operations offices in Chicago, Phoenix and Montreal.
SoFi, short for Social Finance, offers personal loans of up to $100,000 to borrowers with very good to excellent credit. The nationwide lender was founded in 2011 and is known for offering loans with no fees. In addition to personal loans, SoFi offers student loans, auto and student loan refinancing, home loans, and small-business financing.
Upstart is a lending platform that uses artificial intelligence to improve access to affordable credit. Based in California and founded by former Google employees in 2012, Upstart also applies AI to reduce lending risks and costs for its bank partners. The lending intermediary provides unsecured personal loans from $1,000 to $50,000 to borrowers anywhere in the U.S. except West Virginia or Iowa.
LightStream is the online consumer lending division of Truist, which formed in 2019 from the merger of BB&T and SunTrust. SunTrust acquired the assets of online lender FirstAgain in 2012 and relaunched the business as LightStream. LightStream’s online personal loans range from $5,000 to $100,000 and can be used for nearly any reason. Personal loans are available to borrowers nationwide with good to excellent credit.
Although PenFed Credit Union – officially Pentagon Federal Credit Union – serves members of the armed forces, military associations, veterans and retirees, and their families, a military connection is not required to become a member. The credit union offers personal loans for eligible members and eligible co-borrowers in all 50 states, as well as in Guam, Puerto Rico and Okinawa, Japan.
LendingClub connects borrowers and investors through its online marketplace. LendingClub originated on Facebook and evolved into an extensive peer-to-peer lender, though it no longer offers peer-to-peer loans. Borrowers in all U.S. states can apply for $1,000 to $40,000 loans with LendingClub.
FreedomPlus is an online lender affiliated with Freedom Financial Network offering personal loans from $5,000 to $50,000 and promising quick approval and disbursal. A prospective borrower can apply online and talk with a loan consultant. All loans available through FreedomPlus are made by New Jersey-based Cross River Bank.
Best Egg is an online lender founded in 2014 that financial technology company Marlette Holdings Inc. owns and operates. Best Egg offers personal loans starting at $2,000 that can be used to cover medical bills, home remodeling and a variety of other expenses. Cross River Bank in New Jersey issues Best Egg loans, which can be funded in as little as one business day.
Chicago-based Avant has lent more than $6.5 billion to borrowers since its 2012 founding. In partnership with WebBank, Avant offers secured and unsecured personal loans and a credit card. The online lender helps borrowers with fair to excellent credit, or average scores from 600 to 800.
Personal loan interest rates rose this week, trending higher for three-year and five-year loan terms. Here are the average personal loan rates offered to well-qualified applicants with a credit score of 720 or greater, as of Jan. 9:
- Three-year personal loan term: 17.23% (down from 19.05% a week ago).
- Five-year personal loan term: 18.64% (down from 20.9% a week ago).
Personal loan rates vary widely based on creditworthiness. Borrowers with very good or excellent credit scores will see much lower interest rates than those with fair or poor credit, as seen in the chart below:
Veterans take out personal loans for a variety of needs, ranging from paying off credit card debt to managing moving expenses and making large purchases.
“Personal loans can be helpful as a means to pay down high-interest debt more efficiently,” says Nancy DeRusso, managing director and head of financial wellness at Ayco, a financial counseling company.
A veteran might want to use a personal loan to pay off credit card debt for a few reasons. First, transferring high-interest credit card debt to a lower-interest personal loan can help you pay off your debt faster than making minimum credit card payments, and it can save on interest.
Second, a personal loan may also provide a more structured repayment plan than credit cards. And third, a low-interest personal loan can be a valuable way to make a large purchase without tying up cash or other assets, DeRusso says.
But as useful as personal loans for veterans can be, they are still obligations, warns Richard Delgado Jr. of Boeing Global Engagement, the company’s global philanthropic organization.
“I would really caution veterans about the importance of avoiding the temptation to take out more than they might need in the form of a personal loan,” Delgado says. “They should only take out what they really need in order to avoid going more deeply into debt, which is never a good idea.”
- Use a loan to pay for almost anything, such as covering an emergency expense, making a home improvement or consolidating debt.
- Get a predictable monthly payment.
- Borrow with less-than-perfect credit and no collateral.
- Diversify your credit mix with a loan, which could help your credit score.
- You could owe loan fees, such as an application fee and an origination fee, plus late fees and returned payment fees. Read the fine print and ask questions.
- You will find higher interest rates than on secured loans, such as home equity loans and lines of credit.
- You must manage the account responsibly to prevent late or missed payments from hurting your credit score. Also, the loan application requires a hard inquiry, which may temporarily lower your score.
- You should borrow only what you need because a loan is a debt.
For personal loans, veterans must use the same types of lending institutions as civilian borrowers, DeRusso says.
Veterans might scour the web for VA personal loans, but they won’t find any. That’s because the VA does not issue personal loans for veterans.
Delgado says credit unions and institutions that serve veterans can be a smart first stop when loan shopping.
“Credit unions often do a lot of work both with active military and with veterans,” he says. “If you’re transitioning from active duty to civilian life, the credit union will be more understanding about your specific circumstances than a traditional lender.”
A military credit union will grasp the ramifications of deployment and reunion and the circumstances that might cause a late payment, Delgado says. USAA and Navy Federal Credit Union, for example, are known for helping active-duty service members and veterans as well as their families.
Here are some factors to consider as you compare personal loans for veterans:
- Your budget. “Without a sound financial plan to include a budget, any debt – no matter the cost – can lead to financial problems if not managed well,” says Anne Anderson, Weatherford chair of finance at Middle Tennessee State University and U.S. Army veteran.
- Discounts. Credit unions or lenders that specialize in working with veterans may offer interest rate discounts or other perks.
- Annual percentage rates. Look at the top end of the range of APRs. The APR is the annual cost of a loan, including fees, and is typically higher than the interest rate.
- Repayment terms. A longer term will give you a smaller payment but a higher total borrowing cost because you pay interest over a longer time frame.
- Added fees. Lenders may charge origination fees, late fees or prepayment penalties.
- Evaluate customer support. Review customer service resources and ratings to make sure a lender can meet your needs. Check that lenders can deliver funds when you need them if timing is critical.
Ask questions as you consider your options. Do not sign anything that you do not understand.
Find the Personal Loan That’s Right for You
A personal loan is not your only option if you’re a veteran who needs financial assistance. Veterans have these alternatives:
- Grants. A grant is money that does not have to be repaid. Veterans may be able to qualify for grants from organizations or individuals to cover many types of expenses.
- Nonprofits. Many nonprofits can provide financial resources for veterans. The National Veterans Foundation helps veterans write and submit benefits claims to the VA, and the Coalition to Salute America’s Heroes may be able to assist with certain expenses, DeRusso says.
Know all of your options before rushing to borrow. “Veterans should make sure they are aware of the various resources and benefits available to them before taking out a personal loan,” DeRusso says. “The VA publishes an annual guide highlighting the federal benefits available.”
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Personal Loans for Veterans of January 2023
Marcus is the consumer bank and lending arm of investment bank Goldman Sachs. Established in 2016, the lender offers personal loans of up to $40,000.
LendingPoint is an online lender specializing in unsecured personal loans from $2,000 to $36,500 for borrowers with fair credit. The Georgia-based lender issues loans with annual percentage rates of 7.99% to 35.99% and repayment terms of two to six years to people in every state but Nevada or West Virginia. Funds may be available as soon as the next business day after the lender approves the loan and receives all documents.
LendingUSA was founded in 2015 to be a lending solution for merchants. LendingUSA provides point-of-sale customer financing through more than 10,000 merchant partners in various sectors including medical services, pet services, funeral services and consumer services.
Axos Bank is a digital bank founded in July 2000 with one product, a basic checking account. The San Diego-based bank has since focused on providing innovative products and solutions, including personal loans, to customers nationwide. Potential borrowers can prequalify online with no credit damage and obtain personalized loan options and rates.
If you need money fast, Alliant Credit Union typically makes same-day online personal loans between $1,000 and $50,000. The $14 billion Chicago-based credit union, founded in 1935, is one of the biggest in the nation, with 600,000 members. In addition to personal loans, Alliant offers home and auto loans, credit cards, checking and savings accounts, individual retirement accounts, trust accounts, and insurance policies.
Discover is a digital bank and payment services company known for its credit cards. But Discover also offers other products, including fixed-rate personal loans of up to $35,000 to borrowers nationwide. The lender charges no fees as long as you pay on time.
U.S. Bank has physical locations in more than 25 states and offers both short- and long-term personal loans with fixed annual percentage rates. Current customers may qualify to borrow up to $50,000 with a credit score of 660 or above, and options are available for noncustomers willing to open a checking or savings account.
PNC Bank can trace its history back to 1852 and the Pittsburgh Trust and Savings Co. Today, PNC Bank is the seventh-largest bank in the U.S., and it features a wide range of consumer and business banking services. Among its suite of products, PNC offers personal, unsecured installment loans up to $35,000. Applicants are considered based on satisfactory credit history, ability to repay and income.
Rocket Loans offers personal loans to qualified borrowers in all 50 states. These loans are designed for people with fair to excellent credit who need to borrow up to $45,000 for debt consolidation, home improvements, medical expenses and business or other expenses.
Founded in 2005 and based in San Carlos, California, Oportun originates unsecured personal loans of up to $12,000 in 11 states. Loans are available in 30 additional states through Oportun’s partnership with Pathward, formerly known as MetaBank. The lender has no credit history requirement, making its loans an option for consumers with no credit or limited credit. In addition to unsecured personal loans, the lender offers secured personal loans to borrowers in Arizona, California, Florida, New Jersey and Texas.
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