Whether a veteran or active military member requires money to finance an unexpected expense or pay for a job relocation, a range of veteran loans and programs are available for them to select from. For instance, they can get military personal loans from an online lender or approach a credit union that caters explicitly to the veterans. But before that, they must know all their options to make an informed decision.
USAA
It is a full-service bank for military members and their direct families. The USAA offers veterans and other members personal loans up to $100,000. This is one of the most popular providers because it lets veterans borrow more than lenders typically allow. Moreover, the USAA does not charge an early payment penalty or an origination fee.
It is important to note that the company does not let the veterans prequalify for the personal loan. Instead, they have to apply to know about their qualification status. This can result in a hard inquiry on their credit report. Ideally, personal loans from the USAA are suitable for veterans who want to borrow a significant amount. The lender is also a great option because it offers discounts on auto payment schemes. But the USAA only disburses funds from Monday to Friday and charges a 5 percent late payment fee.
Eligibility
The USAA has strict eligibility requirements. This means that only members are eligible to apply for a personal loan with the company. The loans are available for pre-commissioned officers, veterans, active-duty military members, and eligible family members. Further, the USAA requires that the veterans have an honorable discharge status at the time of separation.
Navy Federal Credit Union
Navy Federal Credit Union offers veteran loans for personnel needing small amounts. Its low minimum amount, set to $250, makes it easier for applicants to borrow only the sum they need. That said, their loan amounts do go up to $50,000, so those who want to borrow a large sum can also approach the organization. The interests charged by Navy Federal Credit Union range between 8.99 and 18 percent. Its lowest APR applies only to loans with a 36-month term. It is important to note that to qualify for military personal loans, the veteran must be a member of the Navy Federal Credit Union.
Fortunately, Navy Federal does not levy any prepayment penalties. Additionally, active duty members receive a 0.25% discount for enrolling in autopay, but non-active duty personnel do not benefit from this discount. In most cases, funds are processed on the same day. If a borrower misses a payment and is ten days past the due date, the credit union charges a $29 late fee.
Eligibility
Loans from Navy Federal Credit Union are available only to DoD reservists, officers and candidates, active-military duty members, annuitants, retirees, veterans, and the Reserve Officers’ Training Corps (ROTC). Additionally, those from the delayed entry program, immediate family members of the military, and household members are also eligible.
Achieve
Getting a joint loan with Achieve can increase a veteran’s chances of obtaining a personal loan. While not all lenders offer joint loan options, Achieve does. Veterans can benefit from discounted interest rates if they add a qualified co-borrower to their application.
Borrowers with a good credit score can get better terms with Achieve. Its minimum credit score requirement is 620. Achieve also levies an origination fee of 1.99 to 6.99 percent. Additionally, its APR ranges between 8.99 and 35.99 percent. Fortunately, Achieve also offers multiple interest rate discounts.
With Achieve, customers can get a loan between $5000 and $50,000, and the loan term usually lasts between 24 and 60 months. Moreover, Achieve has many dedicated consultants who help with the application process. Typically, customers receive their loan decisions on the same day.
Eligibility
Besides the requirement of a 620 credit score, Achieve may ask for a few details and documents. These include employment status, Social Security Number, government-issued ID, and proof of income.
LightStream
It offers loans with a low APR range, usually between 6.99 and 25.29 percent. Further, the company has a quick funding process and flexible repayment terms. LightStream also offers a Rate Beat Program guarantee. Under this, if a veteran can find a lower rate with any other lender, LightStream will provide a 0.1 percent point lower rate for the loan with similar terms. But the company only approves borrowers with good to excellent credit scores.
With LightStream, customers can choose from a variety of repayment terms, ranging from 24 to 144 months. After receiving approval, the customers usually receive the funds on the same business day. Moreover, the company does not levy fees; but LightStream does not have a prequalification benefit. So, borrowers cannot check the loan terms and estimated rates through a soft credit check. Further, the company’s loan amount starts at $5000, which may be high for some borrowers seeking a smaller personal loan.
LightStream does not offer any dedicated benefits to veterans, but it is still a superior choice for military personnel and veterans with excellent credit scores. This is because its APR is lower than most other financial institutions.
Eligibility
While the exact credit score a borrower needs for qualification is not mentioned, LightStream is easy to access for people with at least five years of great credit history.