A personal loan can be a financial resource for veterans, especially to cover large, unexpected expenses or to consolidate high-interest credit card debt.
Checking rates is free and won't impact your credit score.
Personal loans are unsecured loans offered by banks, credit unions and online lenders. These loans can be used for almost any expense, and they don’t require collateral.
Loan amounts typically range from $1,000 to $50,000 and are repaid in monthly installments, spread out over several years.
Personal loans are available to veterans even if they have bad credit (any score between 300 to high 500s), but veterans with the highest credit scores will likely qualify for the lowest interest rates.
Best for veterans with bad credit
2026 NerdWallet award winner
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for veterans with bad credit
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
Best for veterans with bad credit
9.95 - 35.99%
$2K - $35K
550
2 to 5 years
Best for veterans with good credit
2026 NerdWallet award winner
6.53 - 35.99%
$1K - $60K
600
2 to 7 years
Best for veterans with good credit
2026 NerdWallet award winner
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best for lenders that serve veterans
9.74 - 29.00%
$2.5K - $100K
None
1 to 7 years
Best for lenders that serve veterans
8.99 - 18.00%
$250 - $50K
None
6 months to 5 years
Best for lenders that serve veterans
7.99 - 17.99%
$600 - $50K
None
1 to 5 years
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
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Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
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Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
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Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
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They could potentially help you improve your finances. The best reason to get a personal loan is when it helps you accomplish a financial goal. This may mean using a personal loan to pay off high-interest debt, like credit cards, or to fund a home improvement project, which increases the value of your home.
They may be the cheapest option. A personal loan can also be a good choice if it’s the most affordable way to borrow money. That means it’s the financing option that charges the least amount of interest.
They’re funded quickly. If you’ve been hit with an unexpected expense or repair, personal loans give you a quick influx of cash at a decent interest rate. Compare this with payday loans, which fund immediately, but may charge interest rates as high as 400%.
They may help you build credit. This repayment history is reported to the credit bureaus. So you can use a personal loan to help build your credit score, as long as you make the payments on time.
There are scammy lenders out there. Only take out a personal loan from a reputable lender that you trust. Reputable lenders never guarantee loan approval (you’ll need to undergo a credit check first), and they won’t charge interest rates above 36%.
» MORE: Learn the signs of a predatory lender
There are a few things to consider as you start to compare personal loans.
APR: The annual percentage rate represents the total cost of the loan, including interest and fees, and it’s the best way to measure affordability. The lower the APR, the cheaper it is to borrow the money.
For example, a two-year $5,000 loan with a 15% APR would cost $818 in interest. The same loan with a 10% APR would cost $537 in interest.
Monthly payment: Personal loans have fixed monthly payments, so the monthly payment amount won’t change over the life of the loan.
Don’t take out a personal loan unless you’re sure you can afford the payment. NerdWallet’s free personal loan calculator can help you estimate your payments before you officially apply.
Repayment term: Repayment terms on personal loans usually range from two to seven years, though longer terms are available from some lenders.
If you choose a longer repayment term, you’ll have lower monthly payments, since there’s more time to repay the loan. But you’ll also pay more in interest. It’s usually best to choose the shortest term with a monthly payment you can still afford.
Funding time: Online lenders tend to fund loans faster than banks or credit unions, which can take up to a week to deposit the money into your account. Many online lenders promise next- or same-day funding.
Military perks: Some lenders offer exclusive membership and perks to military members and their families. For example, Navy Federal gives a 0.25 percentage point discount on personal loans for active-duty and retired military members. USAA offers a discount program that can help military families save money on their everyday expenses.
When reviewing your personal loan application, lenders consider three factors.
Credit score: Veterans with excellent credit (a score in the mid-600s or higher) are the most likely to qualify for a personal loan. But some lenders specifically cater to applicants with bad credit and limited credit history. Check if a lender discloses their minimum credit score requirement before you apply for a loan.
Income: Lenders will also consider your income to make sure you can afford the monthly payments. Include all sources of income in your application, such as disability benefits or rental income.
Debt-to-income ratio: Lastly, lenders will review your debt-to-income ratio, which is the percentage of your monthly income that goes toward paying off debt. A DTI below 36% is ideal, but some lenders accept borrowers with more debt.
If you’re worried about qualifying for a personal loan, you can boost your approval chances by considering three different loan types.
Joint loan: A joint loan is when you add another person to your loan application — ideally someone with better credit or higher income. This improves your chances of qualifying. Both borrowers will have access to the loan funds and are responsible for repayment.
Co-signed loan: A co-signed loan is similar to a joint loan, except the co-signer doesn’t have access to the loan funds. They’re still on the hook for repayment if you don’t repay the loan, though.
Secured loan: Securing a loan involves tying collateral to the loan, like a car or an investment account. This helps guarantee you'll repay the loan, which makes the lender more likely to approve you. But if you fail to repay, you risk losing the collateral.
Before you apply, you’ll want to know your credit score, since this helps narrow down your loan options. You can get your free credit report at AnnualCreditReport.com or through NerdWallet.
If your credit score is lower than you expected, there may be quick ways to build it. This includes disputing errors you see on your credit report (more common than you think), paying down any small debts or asking for a credit limit increase on existing credit lines.
Pre-qualifying is the best way to shop for a personal loan. It involves filling out a short application (usually online) and agreeing to a soft credit check, which won’t damage your credit score.
The lender then shows you a potential loan offer, including what APR you may qualify for. Try to pre-qualify with multiple lenders, so you can compare offers and pick the best one.
Not all lenders offer prequalification, but most online lenders do.
» MORE: Pre-qualify with multiple lenders for free on NerdWallet
Once you’ve chosen a loan offer, it’s time to apply.
Most personal loan applications are available online. You’ll be asked to provide basic personal information, including your Social Security number, and contact information like a home address, phone number and email address.
You also may be asked to include proof of identification and proof of employment and income.
The lender will conduct a hard credit check at this stage. This temporarily knocks a few points off your credit score. You should hear back about whether you’re approved within a few days or less.
» MORE: Documents required for a personal loan
Once you’re approved, you’ll receive the loan documents, which you can usually sign electronically.
Once you’ve signed, you’ll receive the loan funds in the account of your choosing, or you can ask for a mailed check.
Personal loans tend to be funded quickly, with online lenders offering same- or next-day funding. If you go with a bank or credit union, funding may take up to a week.
The first payment on your new loan will be due in about 30 days. Make a plan now to repay the loan, since late payments can trigger costly fees and hurt your credit score.
» MORE: How to manage your personal loan payments
Veterans who need short-term, emergency cash may have other resources besides personal loans, such as grants or other financial assistance. Grants provide free money with no repayment required.
These are just a few of the many resources available to veterans. A complete list of veterans service organizations can be found through the Department of Veterans Affairs.
U.S. Department of Veterans Affairs: The VA releases an annual guide to federal benefits for veterans, dependents, survivors and caregivers. This guide covers information on disability compensation, housing grants for disabled veterans, educational assistance and more.
U.S. Government Guide to Military Pay and Benefits: The U.S. government maintains a webpage dedicated to military pay and retirement benefits (including pensions). You’ll also find information on tuition assistance, health benefits and burial and survivor benefits.
VFW Financial Assistance for Service Members 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 $2,500 for daily necessities. This may include housing expenses, vehicle expenses, utilities, child care and medical bills.
American Legion Temporary Financial Assistance Program: This nonprofit veterans organization awards cash grants up to $2,500 to children of current active duty military or American Legion members to help meet an urgent need.
Business grants and resources for veterans: Veterans who are looking to start a business, or who are existing business owners, can find financial assistance through the Small Business Administration. The SBA offers funding, training and federal contracting opportunities for veterans, as well as resources for military spouses.
Grants and resources for disabled veterans: The Department of Defense publishes a comprehensive Compensation and Benefits Handbook for wounded, ill and injured service members of the armed forces. It covers medical care, family and caregiver support, Social Security benefits and more.
Blue Star Families: This nonprofit organization helps connect military families with free services, including career development training for military spouses.
Hiring Our Heroes: The U.S. Chamber of Commerce Foundation launched this nationwide initiative to help veterans, service members and military spouses find employment. Hiring Our Heroes hosts regular hiring fairs and networking programs and also offers a corporate fellowship program.
