Top Veterans Personal Loan Providers
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Sign the loan contract. Once approved, read the fine print. If everything looks good, sign the loan agreement.
- 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.
- 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.
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