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Best Personal Loans for Veterans September 2023

Personal loans for veterans are unsecured loans offered specifically to military veterans to meet their financial needs. Veterans can often obtain personal loans with favorable terms and conditions, as well as reduced interest rates, due to their service to the country.

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Overview

Upgrade is an online lender that has been around since 2016. It caters to the needs of a wide range of people, including people who want to refinance credit cards, make significant purchases, and make improvements to their homes.

It also offers a no-fee checking account that provides cash-back opportunities, as well as a variety of different credit lines. This Upgrade review will look at everything that Upgrade brings to the table.

Key Facts

  • Discounts for Upgrade account owners
  • No prepayment fees
  • Fast funding in 1-4 days

Pros

pros iconOffers a small minimum loan amount

pros iconDeals with credit scores of at least 580

pros iconNo early prepayment fee

pros iconQuick time to funding

pros iconSolid mobile app to manage loans

Cons

cons iconCharges origination fee

cons iconLate fees in place

  • $1K-$50K Loan Amount
  • 580 Min Credit
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Overview

SoFi, or Social Finance, Inc., was founded in 2011 by Stanford business school students. It started as a way to connect recent graduates with alumni in their community.

In 2012, it became the first private company to refinance both private and federal student loans. A couple of years after that, it started offering mortgage loans, personal loans, and more. By 2019, the company had released SoFi Invest (stock trading) and SoFi Money (cash management account).

Along with loans, SoFi also offers credit cards, budgeting tools, and unique benefits to members. Its goal is to become a one-stop shop for all its consumers’ financial needs.

Sofi is a public company: stock ticker NASDAQ: SOFI

Key Facts

  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

  • $5K-$100K Loan Amount
  • 680 Min Credit
  • 8.99-25.81% APR
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Overview

LightStream is a division of Truist Financial Corporation, acting as its online loans division. LightStream market itself as offering personal loans for practically any purpose, providing loan funding for people with good to excellent credit ratings.

LightStream was founded in 2012 and launched in 2013 as a division of SunTrust Bank. When SunTrust and BB&T merged in 2019, becoming Truist, LightStream came along as part of the deal, and it hasn’t looked back. Another selling point of LightStream’s offering is its same-day loans, where personal loan funding can be in your account on the same day you apply.

Light Stream is a public company: stock ticker NASDAQ: CSCO

Key Facts

  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹
  • Max Loan Amount: $100K
  • Powered by Credible

Pros

pros iconGet a loan for practically anything

pros iconAutopay discount available

pros iconDedicated app to manage your loan

Cons

cons iconPersonal loan up to $100K

cons iconRequires steady income

cons icon1-3 Days till funding

  • $5K-$100K Loan Amount
  • 660 Min Credit
  • 7.99-25.49% APR
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Overview

Pentagon Federal Credit Union (PenFed) was established in 1935 and has grown to become the third largest credit union in the US. The company boasts over 2.8 million members and caters to individuals in all 50 states, with more than $36 billion of assets under management. PenFed offers a wide range of financial products, including mortgages, personal loans, HELOC, student loans, and student loan refinancing.

Headquartered in Virginia, the company holds valid regulation with the National Credit Union Administration. PenFed is also known for its competitive interest rates and attractive features, such as spousal loan refinancing.

Key Facts

  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
  • Wide range of term lengths and amounts

Pros

pros iconFast funding time

pros iconGreat reputation

pros iconLow-fee loans

pros iconWide range of term lengths

Cons

cons iconYou need to be a PenFed Credit Union member to get a loan

cons iconDoesn’t disclose all eligibility requirements

  • $600-$50K Loan Amount
  • 690 Min Credit
  • 8.49-17.99% APR

VA Home Loans

September 2023

Low Rates
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Overview

Founded in 2003 by husband-and-wife team Rick and Patty Arvielo, New American Funding has since grown from a family office to a nationwide force. The prominent direct lender now has offices in 32 states and has issued over $60 billion of home mortgages.

Well-known for its wide range of mortgage options, New American Funding caters to minority communities and provides niche products for borrowers with poor credit histories. The company can help take customers from the starting stages of mortgage qualification to closing the loan, even if they require non-traditional credit evaluation methods.

 

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Pros

pros iconManual underwriting available to evaluate credit

pros iconOne of the few non-bank lenders offering equity lending and reverse mortgages

pros iconCan participate in the entire process online

pros iconEnglish and Spanish-speaking loan officers available

Cons

cons iconNot available in Hawaii or New York

cons iconDoesn’t work with down payment assistance programs in all states

  • check mark Low down payments required ~3%
  • check mark Dedicated to serving minorities
  • check mark Customizable mortgages for a range of credit scores
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Overview

AmeriSave is a company that focuses on all things mortgage-related. It is one of the biggest US retail mortgage firms, operating in nearly every state. In operation for more than two decades, AmeriSave has served over 640,000 borrowers during that time.

One of its main strengths is its quick customized pre-qualification process and its flexible repayment arrangements. This AmeriSave review will look at all aspects of what the company brings to the table.

Pros

pros iconEasy online application process

pros iconTransparent information on their website

pros iconCustomized rates and quick pre-qualification

pros iconDiverse range of loan options

pros icon3% minimum down payment on offer

pros iconAccurate quotes given

Cons

cons iconApplication fee of $500

cons iconOffers no program for first-time homebuyers

  • check mark Protect your rate while you home shop—Lock & Shop
  • check mark Fast preapproval letters
  • check mark 20+ years of experience with A+ BBB rating

Top Veterans Personal Loan Providers

lightstream new logo
LightStream

Division of SunTrust Bank

View rates

660

Min Credit Score

7.99-25.49%

APR. Fixed Rate

7.99-25.49%

APR. Variable Rate

$5K-$100K

Loan Amount

2-7 years

Repayment terms

No

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Get a loan for practically anything
  • con-icon Autopay discount available
  • con-icon Dedicated app to manage your loan
  • con-icon Personal loan up to $100K
  • con-icon Requires steady income
  • con-icon 1-3 Days till funding

Loan Purpose

drop-down-btn
  • Car
  • Major Purchase
  • Household Expenses
  • Vacation
  • Wedding
  • Other

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
sofi logo
SoFi

Low Rates. No Fees are Required.

View rates

680

Min Credit Score

8.99-25.81%

APR. Fixed Rate

8.99-25.81%

APR. Variable Rate

$5K-$100K

Loan Amount

24 to 84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

Same-day funding if approved before 7:00 PM ET days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Personal loan application process is easy and only takes a few minutes to complete
  • con-icon Soft credit check that doesn’t affect your credit score and gives you personalized rates
  • con-icon Fixed and variable rate loans available ranging from $5,000 to $100,000
  • con-icon No late or origination fees required
  • con-icon Excellent customer support team
  • con-icon Online autopay comes with a discount on interest
  • con-icon Exclusive benefits for members (ex. networking events and access to financial advisors)
  • con-icon Unemployment Protection feature comes with a temporary payment pause (up to 12 months)
  • con-icon No prepayment penalties
  • con-icon May take up to 4 days to receive funds after approval (longer than other online lenders)
  • con-icon High eligibility requirements (ex. good credit and sufficient income)

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
Upgrade Personal Loans Logo
Upgrade

Flexible Personal Loan Options

View rates

580

Min Credit Score

8.49-35.97%

APR. Fixed Rate

$1K-$50K

Loan Amount

24-84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

1.85-9.99

Origination Fee

None

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Offers a small minimum loan amount
  • con-icon Deals with credit scores of at least 580
  • con-icon No early prepayment fee
  • con-icon Quick time to funding
  • con-icon Solid mobile app to manage loans
  • con-icon Charges origination fee
  • con-icon Late fees in place

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans

What is Unique About VA Loans?

VA personal loans, also known as VA-guaranteed loans, are special because they are backed by the Department of Veterans Affairs. This means that lenders who offer VA personal loans have the added security of knowing that the VA will guarantee a portion of the loan, which can make it easier for veterans to qualify for the loan and get better interest rates.

VA loans are specifically designed for veterans:

  • Only available to current or former members of the military, including the National Guard and Reserves, and their spouses.
  • Often come with more favorable terms and lower interest rates than traditional personal loans, which can make them an attractive option for veterans looking to finance a variety of needs, such as home repairs, medical bills, or education expenses.
  • Have less stringent eligibility requirements than other types of loans, which can make it easier for veterans to qualify for financing.
  • VA personal loan lenders don't typically charge a prepayment penalty if the borrower pays off the loan early.

How do Personal Loans for Veterans Work?

Personal loans for veterans work similarly to standard personal loans. You can typically get them through banks, credit unions, and private lenders — many of which operate fully online. Once you have the funds, you can use them for nearly anything, including home repairs, debt consolidation, and big-ticket items.

There are two main types of personal loans for veterans:

  • Unsecured: An unsecured personal loan doesn’t require collateral. This makes them less risky to you, the borrower, since the lender can’t take your assets if you default on the loan. These loans typically come with stricter credit score, income, and debt-to-income ratio requirements. However, VA loans of the sort are easier to obtain compared to regular personal loans.
  • Secured: These loans require you to put up collateral like a house or paid-off vehicle in exchange for funds. Many secured loans come with more lenient requirements than unsecured ones. This is because the lender can take the asset if you fail to make payments.

With both types of personal loans, you’ll need to make regular payments until you’ve paid off the balance and any interest. This is called a repayment term and can last anywhere from several months to several years. Payments are usually fixed, unless you choose a loan with a variable interest rate.

Generally, the better your credit score and financial situation, the better your terms, rates, and approval odds will be. However, it’s still possible to get a personal loan as a veteran, even with limited income or poor credit. Just know that you could be looking at higher interest rates or less favorable terms.

How to Get a Personal Loan for Veterans

Although every lender is a little different, here’s the general process for applying for a personal loan as a veteran:

  1. Pull your credit reports. Get a free copy of your credit reports and review them carefully. Check for errors that might be bringing down your score. If you find any, dispute them with the reporting bureau.
  2. Figure out your monthly payments. Use an online loan calculator to determine what your monthly payment will be (estimated) based on your loan amount, interest rate, and terms. This can also give you a better idea of what you can comfortably afford.
  3. Compare multiple lenders. Look for lenders who cater to veterans, as they would have specific offers for this audience. Some lenders have better loan offers than others, so shop around before choosing one. Certain lenders also tack on additional fees — like origination or prepayment fees. Look for a lender with a competitive offer and minimal to no added fees.
  4. Consider prequalification. Prequalifying for a loan lets you compare offers from different lenders without affecting your credit score (make sure they perform a soft credit check). It can give you a clearer picture of what rate and terms you could qualify for.
  5. Complete the loan application. Once you’ve settled on a lender, it’s time to fill out the application. You may need certain documents, such as bank statements, government-issued ID, and W-2s.
  6. Wait for the decision. After applying, wait for the lender’s decision. They will either approve or deny your application or request additional information. They will also perform a hard credit check, which will affect your credit score.
  7. Sign the loan contract. Once approved, read the fine print. If everything looks good, sign the loan agreement.
  8. Receive funds. The time to funding varies by lender. Some lenders offer same-day or next-day funding, while others take a few days or weeks to disburse funds. You’ll typically receive the full loan amount in a lump-sum payment to your bank account.
  9. Make your monthly payments. Finally, start making payments according to your repayment schedule.

Personal Loans for Veterans: What to Consider

Here are the main things to consider when getting a personal loan as a veteran:

  • Credit score impact: Applying for financing can affect your credit score. Taking out a large loan could also increase your credit utilization and cause your score to drop. But with on-time payments, you can start building your credit back up and eventually even improve it.
  • Requirements: Eligibility varies by lender, so check their criteria. Common requirements include a minimum credit score, steady income or proof of employment, and a maximum debt-to-income ratio.
  • Repayment term and rate: Personal loans usually have a fixed interest rate, meaning your monthly payment will always be the same throughout the life of the loan. Your credit score has a major impact on the rate and term you get. A better credit score and higher income could help you qualify for a lower APR, flexible terms, and higher loan amount.
  • Total loan cost: When calculating your monthly payment amount, also calculate how much the entire loan will cost. Things like origination fees and interest rates can add to the total amount. If you want to pay off the loan early, you might also be faced with a prepayment penalty.
  • Flexibility: Personal loans for veterans are flexible, meaning you can use the funds for almost anything. There may be certain restrictions, however, so keep this in mind.

Pros and Cons of Personal Loans for Veterans

Thinking about getting a personal loan as a veteran, but not sure if it’s right for you? Weigh the pros and cons before applying.

Pros of Personal Loans for Veterans

Here are the main advantages of getting a personal loan for veterans:

  • Lenders might view you as lower risk than other borrowers, therefore providing better terms and rates.
  • You could use the funds for nearly anything, ranging from purchasing a big-ticket item to consolidating debt to financing a family vacation or home renovations.
  • Good credit could get you competitive terms and rates.
  • More flexible options exist, compared to traditional personal loans.

Cons of Personal Loans for Veterans

Those are the main drawbacks of getting a personal loan for veterans:

  • Missing payments or taking on too much debt could hurt your credit score.
  • VA loans have limits on the amount that can be borrowed, which may not be sufficient for some borrowers.
  • Additional documentation and requirements may be necessary, which can prolong the application and approval process.
  • VA loans are only available to eligible veterans, service members, and their families, so not everyone can benefit from them.

Alternatives to Personal Loans for Veterans

Looking for something else? Here are a few alternatives:

  • Department of Veteran Affairs: The VA offers benefits, resources, and services to veterans. This includes education and training, healthcare, employment assistance, pension programs, and more.
  • Home Equity Loan or HELOC: If you own a home with equity, you may qualify for a Home Equity Loan or HELOC. Both options are secured using your home equity and can be used for things like debt consolidation or home repairs. The main drawback is that you could lose your home if you don’t pay back what you borrow.
  • Business loan: If you have a business and want to expand, consider an SBA-backed business loan. These loans often come with competitive rates and flexible terms for veterans.

Should You Get a Personal Loan for Veterans?

A personal loan might be right for you if you:

  • Need funds for something like home repairs, an emergency expense, debt consolidation, or a family vacation
  • Have calculated the payments and can reliably afford them
  • Have a steady income and decent credit

Consider your financial situation before applying for a loan. This means looking over your credit score, income, expenses, and current debts.

Evaluate your options and only borrow what you need. Be sure to compare several lenders to find the best loan offer for you. And remember, some lenders will only work with veterans, while others may offer specific rates and terms for veterans than non-veterans.

Average Personal Loan Rates for Veterans

Personal loan rates and terms depend on a few things, including the lender and your credit score. Here are a few of the best lenders that work with veterans:

Lender APR (Fixed) Loan Term Loan Amount Recommended Minimum Credit Score
PenFed Credit Union 7.74% to 17.99% Up to 60 months $500 to $50,000 700
LightStream 7.99% to 25% (with autopay) 24 to 84 months $5,000 to $100,000 660
SoFi 8.99% to 23.43% 24 to 84 months $5,000 to $100,000 680
Upgrade 8.24% to 35.97% 24 to 72 months $1,000 to $50,000 560
Discover 6.99% - 24.99% 36 to 48 months $2,000 to $35,000 660

Conclusion

In conclusion, personal loans for veterans can be a useful resource for those who have served in the military and their families. These loans often come with favorable terms and conditions, as well as reduced interest rates, due to the veteran’s service to the country. VA loans, specifically, are backed by the Department of Veterans Affairs, which can make it easier for veterans to qualify for financing. If you are a veteran considering a personal loan, be sure to shop around and compare multiple lenders, and carefully review the terms and conditions before signing the loan agreement. Overall, personal loans for veterans can be a helpful financial tool to help veterans achieve their goals and meet their financial needs.