The personal finance experts at Business Insider compared USAA Personal Loan to the best personal loans and found that it is an excellent option for existing members and those who are eligible for membership.
USAA offers solid rates on its personal loans and a wide range of loan amounts, but the bank has restrictive membership requirements that make the company inaccessible for some borrowers.
The right loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
USAA Personal Loans Overview
USAA is better known for its insurance and banking products, but the bank also offers unsecured personal loans. Unsecured loans don't require collateral — like a house or car for a mortgage or auto loan — to receive. You can use an unsecured personal loan for a variety of purposes, including debt consolidation loans, home improvement loans, and medical expenses.
USAA membership is only available for military members, veterans, and their families, so if you don't fit those categories, you are not eligible.
You won't pay origination fees, application fees, or prepayment penalties with USAA. The repayment term lengths on USAA loans range from 12 to 84 months. The bank allows you to apply with a co-borrower if you'd like.
After your loan is approved, you'll receive your money within 24 hours during the business week.
To contact customer support, call 800-531-8722 from 7 a.m. to 5:30 p.m. CT Monday through Friday or message the company through your secure login portal.
USAA has a mobile app for managing loans on the go. The app has received mostly positive reviews, with an average of 4.8 stars on the Google Play store and 4.8 stars on the Apple store.
USAA Personal Loan Rates and Terms
USAA personal loans amounts range from $1,000 to $100,000, and residents from all 50 states and Washington, DC, can apply for a loan. You'll have to be a USAA member to get a loan from the company.
The bank has different loan minimums depending on the term length you select:
- 12 to 36-month terms — $1,000
- 48-month terms — $5,000
- 60-month terms — $10,000
- 72-month terms — $15,000
- 84-month terms — $20,000
Depending on your credit score and other financial factors, the high range of your APR will be 10.34% to 18.51%, which is a comparable or lower maximum rate than many competitors. For instance, Navy Federal's rates range from 8.99% to 18.00%, while Avant's loans have APRs between 9.95% to 35.99%.
USAA Personal Loan Pros and Cons
Benefits
- No prepayment penalty or origination fee. You can make additional payments toward your loan, and you won't be charged an extra fee. You also won't pay an origination fee, which is a percentage of your loan proceeds that some lenders take from your total loan amount.
- Funding is available within 24 hours. If you need your money fast, you can get it as soon as the next day, depending on when your loan is approved.
- High maximum loan amount. USAA allows you to borrow up to $100,000, depending on your financial profile, so the lender could be a good option if you need to take out a large sum of money.
- Ability to add a co-borrower. If your finances are in rough shape and you don't qualify for a loan or your interest rate is higher than you'd like it to be, you can add a co-borrower to your loan. A co-borrower with good credit can help you qualify for a loan or reduce your interest rate.
- AutoPay discount. USAA offers a 0.25 percentage point discount if you sign up for automatic payments on your personal loans.
Drawbacks
- Unable to prequalify. USAA doesn't offer prequalification on its personal loans, so you won't be able to check your rate without the lender generating a hard inquiry. A hard inquiry might damage your credit score.
- Need to be a member to borrow. You're only able to become a member of USAA if you're a part of the military community or a family member of that group, so these personal loans might not be accessible to you.
- Late fee. USAA charges a late fee of 5% of the amount due, so if you are behind on a payment, the costs could add up.
Who is a USAA Personal Loan Best For?
USAA is a good choice for borrowers who already have a relationship with the bank and enjoy its service. The company's rates, term lengths, and loan amount ranges don't stand out significantly compared to other competitors, but the company prides itself on how it serves the military community and their families.
How to Apply for a USAA Personal Loan
Before you can apply for a USAA personal loan, you'll have to become a USAA member.
To join the USAA, follow these steps:
- Go to the official USAA website.
- Click "Membership."
- Click "Join USAA."
- Answer questions about your military connection to make sure you qualify for membership.
- Provide personal information, including your social security number.
Once you've officially joined the USAA, you can apply for a personal loan.
Here's how to apply for a USAA personal loan online:
- Go to the "Personal Loans" page on the official USAA website.
- Click "Apply Now."
- Enter the amount of money that you want to borrow.
- Provide details about your income, employer, and housing situation.
USAA can often tell you immediately if you've been approved. In some cases, you'll be asked for additional information. Once the verification is complete, you can expect to receive your funds within two business days.
USAA Personal Loan Alternatives
USAA is roughly similar in value to its competition. Here's how USAA stacks up against two other popular lenders.
USAA Personal Loans vs. Avant Personal Loans
Avant personal loans are known for being a terrific option for borrowers with lower credit scores and who need funding fast. However, USAA offers the highest maximum loan amount of $100,000, whereas Avant only offers personal loan amounts up to $35,000.
Both lenders charge late fees, but neither charge prepayment penalties. Avant's late fee varies by state, and USAA's is 5% of the total amount due. The most significant difference is that Avant loans are available to all borrowers, not only bank members.
Read our Avant personal loan review.
USAA Personal Loans vs. Navy Federal Personal Loans
Navy Federal Credit Union (NFCU) and USAA offer personal loans to military members and their families. Navy Federal allows borrowers to take out loans of up to $50,000, only half of USAA's maximum loan amount of $100,000.
None of these companies charge prepayment penalties, though they both charge late fees. USAA's late fee is 5% of the amount due, and Navy Federal's is a flat $29.
Generally, Navy Federal's rates are more competitive than USAA's, with the current APR range starting at 8.99%. That said, Navy Federal is often a better choice for personal loans if you have excellent credit and qualify for the lowest rates.
Read our Navy Federal personal loan review.
9.99% to 18.51%
$1,000 to $100,000
Undisclosed
USAA Personal Loan Customer Experience
With an online application process and the option to sign documents through a mobile app, USAA simplifies the customer experience. However, the organization receives an average of just 1.3 stars from reviewers on Trustpilot.
Most complaints are related to USAA insurance, not USAA personal loans. Several reviewers mentioned excellent customer service experiences, although some also noted that the service has gotten worse since the company implemented an automated phone answering service.
Are USAA Personal Loans Trustworthy?
USAA has a top-notch A+ rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB bases its ratings on the company's response record for consumer complaints, transparency about business practices, and truthfulness in advertising.
USAA has been at the center of a controversy over the past few years. The Office of the Comptroller of Currency forced the bank to fork over a hefty $85 million fine in 2020 after the regulator determined the bank failed to properly manage risk in its compliance and information technology programs.
Even though USAA has a great BBB rating, that doesn't guarantee a good relationship with the bank. Reach out to friends and family and ask them about their experience with the lender before deciding to borrow. You may also not feel comfortable with the lender given its recent scandal, so you might choose to look elsewhere.
Why You Should Trust Us: How We Rated USAA Personal Loans
Personal loan products in our reviews and guides are rated on a scale from 1-5. The overall rating is a weighted average of different categories that displays how the personal loan lender compares to its competing lenders:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each of the seven categories is assigned a weighting depending on its importance to the borrower's experience. For instance, fees and interest rates are weighted slightly heavier than borrower accessibility because those categories significantly impact you as the borrower.
See more on how we rate personal loans »
USAA Personal Loans Frequently Asked Questions
What credit score do I need for a USAA personal loan?
USAA doesn't list a minimum credit score for personal loans, but a good to excellent score of 670 or higher should improve your chances of acceptance.
Can I apply for a USAA personal loan if I'm not in the military?
You can apply for a USAA personal loan if you're a member of USAA. Membership is extended to active-duty U.S. military members, veterans, pre-commissioned officers, spouses, divorced spouses (who haven't remarried), and children of veterans and U.S. military members
How long does it take to get approved for a USAA personal loan and receive funds?
USAA often approves loan applications immediately, but you might be asked to provide additional documentation, which would cause a delay. Once approved and verified, your funds should arrive within two business days.
