USAA Personal Loans: 2021 Review
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Our Take
4.0
The bottom line: If you’re a USAA member with good credit, you may be able to get a personal loan at a competitive rate that can be funded in one business day.
Full Review
USAA Personal Loan
Min. Credit Score
None
Est. APR
6.49 - 17.15%
Loan Amount
$2,500 - $20,000
Pros & Cons
Pros
- Competitive rates among good-credit lenders.
- No origination or prepayment fee.
- Existing customers can get a .25% rate discount for setting up autopay.
- Option to include a co-signer.
Cons
- Must be a USAA member.
- No option to pre-qualify.
- Charges late fee.
- Offers a small range of loan amounts.
Compare to Other Lenders
 |  |
|---|---|
Est. APR5.94 - 35.47% | Est. APR7.04 - 35.89% |
Loan Term2 to 7 years | Loan Term3 to 5 years |
Loan Amount$1,000 - $50,000 | Loan Amount$1,000 - $40,000 |
Min. Credit Score560 | Min. Credit Score600 |
Compare estimated rates from multiple lenders
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Full 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 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:
» COMPARE:
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 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:
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.
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 , 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 . The lender did not respond to NerdWallet’s inquiries about further steps it has taken to ensure customers are protected.
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.
Members can fill out an application on USAA’s website. Pre-qualification is not available for personal loans.
NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify and receive a personalized rate from lenders that partner with NerdWallet.
Personal Loans Rating Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 30 lenders. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. 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. 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.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read our editorial guidelines.
