NerdWallet rating: 4.0 / 5.0
Good for: Good credit, debt consolidation
With more than 12 million members, USAA Bank is one of the nation’s largest military-focused financial services companies. USAA offers its members competitive rates on unsecured personal loans, plus a fast application and funding process.
Personal loans from USAA are a good fit for borrowers who:
- Want to consolidate debt. USAA offers fixed-rate loans that can be used to pay off high-interest debts, such as credit cards.
- Need fast funding. Following approval, borrowers receive their money by the next day.
- Meet its membership requirements. You must be an active or former member of the military or an eligible family member to qualify for membership. See membership requirements in the table below.
USAA loan rates and terms
|Loan amounts||$2,500 to $50,000|
|Typical APR||8.99% - 18.0%|
|Time to funding||Funds available by the next day|
|Repayments||Monthly over 1 to 7 years|
|Soft credit check?||No|
|Minimum loan qualifications||No minimum qualification requirements disclosed|
|USAA membership requirements||
» MORE: Best personal loans for veterans
USAA personal loan review
To review USAA, NerdWallet collected more than 30 data points from the lender, interviewed company executives, and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.
You must be a member at USAA to apply for a personal loan. Its loans can be used for a variety of purposes, including debt consolidation, home improvements, vacations and wedding expenses, according to USAA.
USAA loans come with no application fees, origination fees or prepayment penalties. Personal loan terms range from 12 to 84 months, with annual percentage rates from 8.99% to 18% (which includes a 0.25% discount for automatic payments). You must have excellent credit to qualify for its lowest rates or to get a loan with a repayment term that’s greater than 60 months.
» MORE: NerdWallet’s review of USAA
The company does not allow co-signers on loans, but it does take joint applications in which both borrowers have access to the loan proceeds and are responsible for repaying the loan. Generally, having a co-applicant with a stronger credit profile can boost the odds of approval or get a lower rate.
Applicants should note that USAA does a hard credit pull on personal loan applications, which may result in a temporary hit to your credit score.
USAA also offers an optional debt protection program for an extra fee that is based on the outstanding loan balance. This program either pays off your remaining loan balance if you die, or covers your loan repayments for a certain period of time if you become disabled or involuntarily unemployed. The program has coverage limits and may not be necessary if you’re already covered under your life or disability insurance.
» MORE: What is credit insurance?
Loan example: For a borrower with excellent credit, a $20,000 personal loan with a repayment term of 36 months at 13.9% APR would carry monthly payments of $683, according to NerdWallet’s personal loan calculator.
How USAA compares
Navy Federal is a credit union that offers a slightly lower starting APR; customers with excellent credit may qualify for a 36-month term at 7.99% APR. Navy Federal also offers home improvement loans with repayment terms up to 15 years, although rates are higher, ranging from 15.09% to 18%.
Wells Fargo offers higher loan amounts — up to $100,000 — and a lower starting rate at 7.24% than Navy Federal or USAA. Its loans can be used to consolidate debt or finance costly projects. New customers must apply in person, while existing customers can apply and receive funds online.
How to apply for a USAA loan
To become a member and create an online account with USAA, you’ll need to provide your date of birth, contact information and Social Security number, and details about your or your family member’s military service. USAA members can apply for a personal loan over the phone, online or at a branch.
NerdWallet recommends comparing loans to find the best rate for you. Click below to see estimated rates from multiple lenders on NerdWallet.
Before you shop for a personal loan:
- Learn how personal loans work
- 4 steps to pre-qualify for a personal loan
- Read more personal loan reviews
Personal Loans Ratings Methodology
NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including: soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. We only review 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. Read our editorial guidelines.
— Among the very best for consumer-friendly features
— Excellent; offers most consumer-friendly features
— Very good; offers many consumer-friendly features
— Good; may not offer something important to you
— Fair; missing important consumer-friendly features
— Poor; proceed with great caution