USAA Personal Loans: 2021 Review

To review USAA’s personal loans, NerdWallet collected more than 40 data points from the lender, interviewed company executives, confirmed information with customer service representatives 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.

USAA Bank provides personal loans at competitive rates that can be used for almost any purpose. Members can borrow between $2,500 and $20,000, and repayment terms range between one and seven years, depending on the amount you borrow.

For 12- to 36-month terms, you must apply for a $2,500 loan or larger.  To receive a 48-month term, you must apply for a $5,000 loan or larger. Financing for 60-month, 72-month and 84-month terms requires a financed amount of at least $10,000, $15,000 or $20,000, respectively.

Membership at USAA is required to apply for a personal loan. Here’s who USAA says it serves:

• Anyone serving in the U.S. Air Force, Army, Coast Guard, Marines, Navy, National Guard and Reserves.

• Former military members who have retired or been honorably discharged.

• Widows, widowers and former spouses (who have not remarried) of USAA members who joined USAA prior to or during the marriage, and children of members.

• Cadets and midshipmen at U.S. service academies, in advanced ROTC or on ROTC scholarship, and officer candidates within 24 months of commissioning.

USAA is best for borrowers who:

• Are current or eligible USAA members.

• Have good credit (690 FICO or higher).

• Would like to add a co-signer.

• Want fast funding.

USAA at a glance

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Where USAA stands out

Fast funding: USAA offers a fully online process and says it will fund a loan within one business day after an application is approved. Fast funding is common among lenders, but some of USAA’s bank competitors may require an in-person visit to close a loan or take up to a week to deposit the funds in your account.

Option to add a co-signer: Borrowers can add a co-signer to their application to help them qualify for the loan and potentially receive a lower rate. Though a co-signer does not have access to the loan proceeds, that person can be held responsible for missed payments.

Autopay discount: USAA offers a discount of 0.25% on its annual percentage rate to borrowers who set up automatic payments. This discount encourages borrowers to pay on time and can be as high as 0.50% for some lenders.

Mobile app: USAA has a mobile app where members can estimate monthly personal loan payments and transfer funds between accounts.

» MORE: Best good-credit personal loans

Where USAA falls short

No soft credit check: Unlike most online lenders and some banks, USAA does not offer the option to pre-qualify. Pre-qualifying lets you see your potential loan amounts, rates and terms without affecting your credit score.

Limited range of loan amounts: USAA offers only medium-sized loans. This could leave out borrowers on both sides, including applicants who need a smaller loan for an emergency repair or applicants who need a larger loan to cover a home improvement project.

Limited customer service hours: Customer service support for personal loans is available only Monday through Friday during business hours. Though few lenders offer 24-hour assistance to customers, most offer extended hours of some kind, whether it’s more weekday hours or additional support on the weekends.

No direct payment to creditors: If borrowers want to consolidate credit card or other high-interest debt, they will need to send the funds themselves. USAA does not send money directly to creditors, which is a feature offered by some other banks.

What to know about USAA

In October 2020, the Office of the Comptroller of the Currency fined USAA Bank $85 million after it failed to provide satisfactory risk management programs and violated the Servicemembers Civil Relief Act and the Military Lending Act.

According to a recently released 2019 OCC report, USAA failed to provide relevant protections to military reservists, wrongfully repossessed vehicles, filed incorrect affidavits in default judgment cases and used "remotely created checks to collect past due amounts for members who were covered borrowers."

The bank is now working on providing remediation in the form of payments, changed fee structures and corrected disclosures, according to a statement on its website. The lender did not respond to NerdWallet’s inquiries about further steps it has taken to ensure customers are protected.

How to qualify for a USAA loan

USAA does not publicly disclose many of its borrower requirements. Borrowers with good and excellent credit scores will likely qualify for the lowest rates.

Loan example: A two-year, $10,000 loan with a 17.4% APR would cost $496 in monthly payments. You’d pay $1,904 in total interest on that loan.

How to get a USAA loan

Apply on USAA

Members can fill out an application on USAA’s website. Pre-qualification is not available for personal loans.

Pre-qualify on NerdWallet

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