USAA offers personal loans to residents everywhere in the US.
USAA; Alyssa Powell/Insider
Editor’s rating: 3.25 out of 5 stars
The bottom line: USAA Personal Loans 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.
USAA personal loan amounts and interest rates
USAA Personal Loans amounts range from $2,500 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 — $2,50048-month terms — $5,00060-month terms — $10,00072-month terms — $15,00084-month terms — $20,000
Depending on your credit score and other financial factors, the high range of your APR will be USAA Personal Loans, which is a comparable or lower maximum rate than many competitors. For instance, Navy Federal’s rates range from Navy Federal Credit Union Personal Loan, while Avant’s loans have APRs between Avant Personal Loan.
Read on to find more options for the best personal loans.
Pros and cons of USAA personal loans
Pros
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 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 .25 percentage point discount if you sign up for automatic payments on your personal loans.
Cons
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 is if you’re a part of the military community or a family member of that group, so these personal loans might not be accessible for all borrowers.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 USAA 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 USAA personal loans compare
USAA is roughly similar in value to its competition. Here’s how USAA stacks up against Navy Federal and Avant:
USAA
Navy Federal Credit Union
Avant
Editor’s rating
3.25
Editor’s rating
3.75
Editor’s rating
3.75
APR
USAA Personal Loans
APR
Navy Federal Credit Union Personal Loan
APR
Avant Personal Loan
Origination fee?
No
Origination fee?
No
Origination fee?
No*
USAA Personal Loans
Navy Federal Credit Union Personal Loan
Avant Personal Loan
*While Avant does not charge an origination fee, it does charge an administration fee of up to 4.75%.
USAA offers the highest maximum loan amount of any of the companies at $100,000. Navy Federal allows borrowers to take out up to $50,000, while Avant brings up the rear at $35,000.
None of these companies charge prepayment penalties, though all of them charge late fees. USAA’s late fee is 5% of the amount due, Navy Federal’s is a flat $29, and Avant’s fee varies by state.
Both Navy Federal and USAA require you to be a member of the military community or a family member of one to qualify to join. In that sense, they are more restrictive than Ascent, which is open to all borrowers — provided your credit is in good enough shape.
How USAA personal loans work
USAA is better known for its insurance and banking products, but the bank also offers unsecured personal loans. Unsecured loans are loans that 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 but not limited to, debt consolidation, home improvements, and vacations.
USAA membership is only available for military members, veterans, and their families, so if you don’t fit those categories — like Super Bowl champion Rob Gronkowski — 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 the company from 7 a.m. to 5:30 p.m. CT Monday through Friday or message the company through your secure log in portal.
USAA has a mobile app so you can manage your loans on the go. The app has gotten mostly positive reviews, receiving an average of 4.4 stars on the Google Play store and 4.8 stars on the Apple store.
Is USAA 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 off of an evaluation of a company’s response to 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 their 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.
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