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8 Best Personal Loans for Veterans, Plus Other Financial Help

Steve NicastroFebruary 25, 2020

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Compare unsecured personal loans from online lenders and credit unions that cater to military veterans, including those with good and bad credit.

Veterans transitioning to civilian life often face financial challenges, such as loss of military benefits or difficulty finding a job. They may need to rely on grants or other financial assistance, or perhaps take out a personal loan.

A personal loan — money borrowed from a bank, credit union or online lender that’s paid back in fixed monthly installments — may be an option for veterans looking to cover large unexpected expenses or consolidate high-interest credit card debt.

“Part of the transition challenge is there are things that go away; maybe it’s a tax-free housing allowance, tax advantages or health care that comes with little or no cost on the military side,” says J.J. Montanaro, an Army veteran and financial planner with USAA.

NerdWallet always recommends you know your credit score and compare personal loans from multiple lenders before making a choice.

» MORE: Pros and cons of unsecured loans

Summary of Best Personal Loans for Veterans, Plus Other Financial Help

Our picks for

Loans for veterans with bad credit

Options include online lenders and credit unions, some of which cater to veterans and may offer lower rates and more flexible terms for bad-credit borrowers.

LendingPoint

on LendingPoint's website

LendingPoint

LendingPoint

Min. Credit Score

585

Est. APR

15.49 - 35.49%

Loan Amount

$2,000 - $25,000

on LendingPoint's website

Min. Credit Score

585

Key facts

LendingPoint accepts low credit scores and has flexible payments. Rates are high but comparable to competitors.

Pros

  • Soft credit check with pre-qualification.

  • No prepayment fee.

  • Option to change your payment date.

Cons

  • May charge an origination fee.

  • No co-sign or secured loan options.

Qualifications

  • Minimum credit score of 585; borrowers’ average is 670. LendingPoint uses the FICO 9 credit scoring model.

  • At least $20,000 in annual income; average customer earns $85,000.

  • Debt-to-income ratio of less than 40%; average customer is 15%.

  • LendingPoint is unavailable to borrowers in West Virginia.

Available Term Lengths

2 to 4 years

Fees

  • Origination fee: 0% - 6%.

  • Late fee: $30 after 15-day grace period.

Disclaimer

Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint's final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.99% APR, with terms from 24 to 48 months.
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Avant

on Avant's website

Avant

Avant

Min. Credit Score

580

Est. APR

9.95 - 35.99%

Loan Amount

$2,000 - $35,000

on Avant's website

Min. Credit Score

580

Key facts

Avant's low starting rates make it a good option for veterans with low credit scores and income.

Pros

  • Able to fund loans within one business day.

  • Soft credit check with pre-qualification.

  • Option to change your payment date.

Cons

  • Charges origination fee.

  • No option to include co-signer.

Qualifications

  • Minimum credit score of 580.

  • At least $20,000 in gross annual income.

Available Term Lengths

2 to 5 years

Fees

  • Administrative fee: Up to 4.75%.

  • Late fee: $25 (most states).

  • Unsuccessful payment fee: $15 (most states).

Disclaimer

A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC
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OneMain

on OneMain Financial's website

OneMain Financial

OneMain

Min. Credit Score

None

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 - $20,000

on OneMain Financial's website

Min. Credit Score

None

Key facts

A OneMain loan is an option for bad-credit borrowers, but it comes with high starting rates and an origination fee.

Pros

  • May fund a loan the same day.

  • Offers joint and secured loan options.

  • Free credit score access.

Cons

  • Charges origination fee.

  • Rates are high compared to other lenders that serve similar borrowers.

Qualifications

  • Minimum credit score: None, average is 626

  • Minimum credit history: Not provided.

  • Minimum annual income: None, average is $49,000.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: $25 to $400 or 1 - 10%

Disclaimer

Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
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Our picks for

Lenders that cater to veterans

Navy Federal Credit Union Personal Loan
See my rates

on NerdWallet's secure website

Navy Federal Credit Union Personal Loan

Navy Federal Credit Union Personal Loan

Min. Credit Score

None

Est. APR

7.49 - 18.00%

Loan Amount

$0 - $50,000

See my rates

on NerdWallet's secure website

Min. Credit Score

None

Key facts

Navy Federal Credit Union is the world’s largest credit union. You can become a member if you are active-duty military, a veteran, a Department of Defense civilian employee, or a family member of any current member.

Pros

  • Competitive rates among credit unions.

  • No origination fee.

Cons

  • Must be a member of Navy Federal.

  • No option to pre-qualify.

Qualifications

  • No minimum qualification requirements.

  • Must meet membership requirements.

Available Term Lengths

1 to 5 years

Fees

  • Origination fee: None.

Disclaimer

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USAA Personal Loan
See my rates

on NerdWallet's secure website

USAA Personal Loan

USAA Personal Loan

Min. Credit Score

None

Est. APR

6.99 - 17.65%

Loan Amount

$2,500 - $5,000

See my rates

on NerdWallet's secure website

Min. Credit Score

None

Key facts

Members of USAA can get competitive rates and terms on its unsecured personal loans.

Pros

  • Low rates.

  • No origination fee.

  • Fast funding.

Cons

  • Hard credit pull.

  • Must be a USAA member.

Qualifications

  • No minimum qualifications disclosed.

Available Term Lengths

1 to 7 years

Fees

  • Origination fee: None.

  • Late fee: 5% of payment amount.

Disclaimer

Read Full Review
PenFed Credit Union Personal Loan
See my rates

on NerdWallet's secure website

PenFed Credit Union Personal Loan

PenFed Credit Union Personal Loan

Min. Credit Score

600

Est. APR

6.49 - 17.99%

Loan Amount

$500 - $20,000

See my rates

on NerdWallet's secure website

Min. Credit Score

600

Key facts

While PenFed membership is open to the public, the credit union has exclusive military benefits, including a financial hardship center, advice center and a deployment guide.

Pros

  • Option to defer a payment.

  • Offers small loans of $500.

  • Option to include a co-signer.

Cons

  • Does not offer direct payment to creditors with debt consolidation loans.

  • No option to pre-qualify.

Qualifications

  • Minimum credit score: 600.

  • Some credit history required.

  • Membership required.

Available Term Lengths

1 to 5 years

Fees

  • $20-$25 late fee after five-day grace period.

  • $30 returned payment fee.

  • $5 membership fee.

Disclaimer

Read Full Review

Our picks for

Loans for veterans with good credit

Borrowers with good credit (a score of 690 or higher) can consider online lenders, most of which don't specifically cater to veterans, but may offer the best option.

Prosper

on Prosper's website

Prosper

Prosper

Min. Credit Score

630

Est. APR

7.95 - 35.99%

Loan Amount

$2,000 - $40,000

on Prosper's website

Min. Credit Score

630

Key facts

Prosper is an online lender with rates and fees that compare to other lenders for good-credit borrowers.

Pros

  • No prepayment fee.

  • Option to change your payment date.

  • Offers joint loan option.

Cons

  • Charges origination fee.

  • Charges late fee of $15 or 5% of the unpaid loan amount.

Qualifications

  • Minimum credit score: 640, but average is 717.

  • Minimum credit history: Two years, but average is 11.

  • Minimum annual income: None, but average is $89,000.

  • Maximum debt-to-income ratio: 50% (excluding mortgage).

  • No bankruptcies filed within the last year.

  • Fewer than five credit bureau inquiries in the last six months.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 2.41 to 5%.

  • Late fee: $15 or 5% of unpaid amount (whichever is greater).

  • Insufficient funds fee: $15.

Disclaimer

For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
Read Full Review
Lending Club
See my rates

on NerdWallet's secure website

LendingClub

Lending Club

Min. Credit Score

600

Est. APR

10.68 - 35.89%

Loan Amount

$1,000 - $40,000

See my rates

on NerdWallet's secure website

Min. Credit Score

600

Key facts

LendingClub is a peer-to-peer lender and a good option if you want to consolidate your debt.

Pros

  • Offers direct payment to creditors with debt consolidation loans.

  • Joint loan option.

  • Soft credit check with pre-qualification.

Cons

  • Charges origination fee and late fees.

  • Does not offer mobile app to manage your loan.

Qualifications

  • Minimum credit score of 600. LendingClub uses FICO 8 credit scoring model.

  • Minimum credit history of three years.

  • Debt-to-income ratio of less than 40% for single applications, 35% combined for joint applicants.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 2% to 6%

  • Late fee: Greater of $15 or 5% of payment after 15-day grace period.

Disclaimer

*All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 10.68% to 35.89%. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long-term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: 595 Market St suite 200 San Francisco Ca 94105. **Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between Jan. 1, 2018, and July 20, 2018. The time it will take to fund your loan may vary.
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» MORE: Compare unsecured loans and apply

How to pre-qualify for an online personal loan

Pre-qualifying for an online loan can get you access to potential loan terms, including the loan’s interest rate, loan amount and payments. Take the steps to pre-qualify and compare offers to find the loan that gives you an amount you need and a payment you can afford.

» MORE: Pre-qualify with multiple lenders on NerdWallet

Financial assistance, grants and resources for veterans

Veterans seeking personal loans or short-term emergency cash may have other resources available, such as grants, which provide free money with no repayment required, and financial assistance. Here’s a list of some potential resources.

FINANCIAL ASSISTANCE AND BENEFITS

U.S. Department of Veterans Affairs: The VA’s annual guide to federal benefits for veterans, dependents and survivors offers information on disability compensation, housing grants for disabled veterans and educational assistance.

A veteran service officer at the National Veterans Foundation can help you write and submit benefits claims to the VA.

The Coalition to Salute America’s Heroes: This nonprofit helps veterans cover expenses such as utility bills, car and mortgage payments, and medical bills for wounded veterans and families of Operation Enduring Freedom, Operation Iraqi Freedom and Operation New Dawn. Applicants must meet eligibility requirements to be considered for financial aid and other services.

JOB TRAINING AND PLACEMENT

Blue Star Families: This nonprofit organization provides free resources and services to more than 1.5 million military families, such as training and job placement, career networking events and mentoring.

Hiring Our Heroes: The U.S. Chamber of Commerce launched this nationwide initiative to help veterans, transitioning service members and military spouses find employment opportunities. Hiring Our Heroes hosts free job fairs throughout the country, and also offers a corporate fellowship program, resources for creating a resume, and access to thousands of volunteer mentors.

GRANTS

Rebuild Hope: This volunteer-driven nonprofit provides financial counseling to disabled Iraq and Afghanistan veterans and their families. Qualified applicants may receive emergency financial assistance grants between $1,500 and $2,000.

Unmet Needs Program: The Veterans of Foreign Wars offers this program for military families who have financial difficulties stemming from deployment or other military-related activity or injury.

It provides grants up to $1,500 and can be used for eligible expenses, which include household expenses, car repairs, utilities, food and clothing and medical bills.

Modest Needs Homecoming Heroes Grant: This nonprofit corporation offers a financial assistance grant to eligible military veterans who have recently returned from overseas deployment. The grant helps with one-time emergency expenses or a temporary loss of income.

The American Legion: This nonprofit veterans organization offers a Temporary Financial Assistance program, which awards cash grants of up to $1,500 to children of current active-duty or American Legion members.

Business grants and resources: Veterans looking to start a business or existing business owners can seek financial assistance through small-business grants, as well as education and training programs aimed at helping veteran entrepreneurs.

Last updated on February 25, 2020

Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Best Personal Loans for Veterans, Plus Other Financial Help

Further reading.

Should I Get a Personal Loan?

By Narottam Medhora & Jackie Veling