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Whether you need to finance an unexpected expense or a job relocation as a veteran or military member, there are a handful of veteran and military loans available. You can either choose a credit union that caters specifically to veterans and military members or a bank or online lender that offers favorable terms but doesn’t require you to be a veteran or active-duty military member to apply.
Credit unions that cater to veterans and military members typically offer benefits and perks, like discounts on car rentals and access to car-buying programs. Banks and online lenders, on the other hand, typically don’t offer those benefits but often provide an autopay discount. The mix of benefits, discounts and terms you want to receive usually points you in the direction of the right military personal loan for you.
Compare Personal Loan Rates
Best Personal Loans for Veterans & Military Members of March 2024
Best Personal Loans for Veterans & Military Members With Good Credit
Best Overall For Veterans & Military Members With Bad Credit
Tips for Comparing Personal Loans for Veterans & Military Members
When comparing personal loans for veterans and military members, you should:
- Consider possible discounts. Our list includes a mix of credit unions, banks and online lenders. Because credit unions require memberships, they also often offer member perks and discounts, including deals on auto insurance, car rental savings and vehicle buying programs. You typically won’t see these perks at a bank or online lender; those institutions generally offer autopay discounts only. Consider which is more valuable to you.
- Compare the top-end range of interest rates. If you have bad credit, be aware of interest rates. Because rates largely depend on your qualifying credit score, you’re likely to land a rate at the top-end of the range with bad credit. So, when comparing personal loans for veterans and military members with bad credit, be sure to compare the maximum rate.
- If possible, prequalify with a provider. Several providers offer the opportunity to prequalify you for a personal loan. This means you can submit details like your income information, desired loan use, housing situation and other information to learn about potential loan limits, rates and repayment options. Prequalifying also only requires a soft credit check, which doesn’t hurt your credit score, so you can safely find the best rates.
- Check for additional fees. Some personal loan providers offer no origination fees, late payment fees or prepayment penalties. However, there are some that may charge all or a few of these fees. When comparing personal loans for veterans, be sure to look at the fee structure beyond the potential interest rate you can receive.
- Evaluate the lender’s customer support options. If you’ve found a lender, there’s one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender’s customer service resources and read reviews to make sure it’s a good fit.
Methodology
We reviewed 20 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We grouped loans into three categories: veteran-specific, good credit and bad credit.
Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.
Below you will find the methodology used for each category.
Personal Loans That Cater to Veterans & Military Members Methodology
We chose lenders that cater to veterans and military members and ranked them based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 20%
- Customer experience: 15%
- Application process: 10%
Personal Loans for Veterans & Military Members With Good Credit Methodology
We chose lenders that have a minimum credit score requirement of 660 and ranked them based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 20%
- Customer experience: 15%
- Application process: 10%
Personal Loans for Veterans & Military Members With Bad Credit Methodology
We chose lenders that have a minimum credit score requirement of 600 or lower and ranked them based on the weighting assigned to each category:
- Eligibility and accessibility: 30%
- Loan cost: 25%
- Loan details: 20%
- Customer experience: 15%
- Application process: 10%
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Related: Compare Personal Loan Rates
Why Do Veterans and Military Members Need Personal Loans?
Veterans and military members may come to a point in their lives where they need to cover unexpected expenses, medical bills, home improvement projects or consolidate high-interest debt. What’s more, veterans moving back into civilian life may face financial challenges, such as the loss of military benefits or difficulty finding a job. Personal loans can help these groups of people access necessary funds and financing when they need it most.
How to Apply for Veteran and Active-duty Military Loans
While the process varies by lender, follow these general steps to apply for veteran and active-duty military loans:
- Check your credit score. First, check your credit score for free through your credit card issuer or another website that offers free scores. This will help you understand your creditworthiness and qualification chances. Aim for a score of at least 610; however, a score of at least 720 will yield the most favorable loan terms.
- If necessary, take steps to improve your credit score. If your score falls below 610 or you want to boost your score to receive the best terms possible, take time to improve your score before applying, such as repaying debt and lowering your credit usage.
- Determine how much you need to borrow. Once you check your credit score, calculate how much money you need to borrow. Only borrow what you need because you’ll receive your money as a lump sum and pay interest on the entire amount.
- Shop around for the best terms and interest rates. Many lenders let you prequalify before applying, which lets you see the terms you may receive with just a soft credit inquiry. Prequalifying lets you shop around for the best rates without hurting your credit score. Be sure to compare lenders that specifically cater to veterans and military members along with traditional online lenders available to all civilians.
- Submit your application. After you find a lender that offers you the best terms, submit your application online or in person. This process can take a few hours to a few days, depending on your lender.
Related: 5 Personal Loan Requirements To Know Before Applying
How To Qualify for a Personal Loan for Veterans and Military Members
Each lender sets its own specific borrowing requirements, and most examine the following when evaluating your application:
- Credit score and history. Lenders review your credit score and history to see how you’ve managed credit in the past and to assess your risk as a borrower. Minimum requirements vary, but a good or excellent score and positive credit history will help you qualify for the best rates.
- Income. A stable source of income is important, as lenders want to see that you have the means to repay your loan and won’t fall behind on payments. Lenders may ask to see pay stubs, bank statements or other documents to verify your income.
- Debt-to-income (DTI) ratio. Your DTI shows the amount of money you pay toward debts each month compared to your gross income. Lenders generally prefer a DTI of 36% or less, but some may allow a DTI up to 50%.
If you borrow a secured personal loan rather than an unsecured one, you’ll have to back your loan with collateral. Some lenders let you apply with a co-borrower or co-signer, which could boost your chances of approval (or help you access better rates) if you’re having trouble getting the loan on your own.
Financial Resources for Veterans and Active-duty Military
Veterans can access a plethora of support beyond personal loans, such as specific programs, benefits, resources and financial assistance. You can search for different financial resources for veterans through the following websites:
- USA.gov. Provides information regarding military and veteran benefits like health care, housing and education. You can also find programs that help with military life, including job search help for spouses and support during deployments.
- PenFed Foundation. Here you’ll find a wide variety of emergency financial resources available to veterans and service members.
- Veterans Families United. Get information about veteran and military financial assistance. Programs range from financial support, career counseling, housing assistance and recreational therapy programs to assistance for the wounded, mortgage support and advocacy assistance.
What Grants Are Available for Disabled Veterans?
There are a variety of grants and benefits available for disabled veterans. Some of these include:
- Specially Adapted Housing (SAH) Grant: This grant offers up to $109,986 to buy, build or renovate a long-term home.
- Special Home Adaptation (SHA) Grant: Available for up to $22,036, the SHA Grant lets you buy, build or change a permanent home that you or a family member own if you have a qualifying service-connected disability.
- Temporary Residence Adaptation (TRA) Grant: This grant offers between $7,910 and $44,299 to disabled veterans who are living temporarily in a family member’s home that needs accommodations to meet their needs.
- VA Disability Compensation: This benefit offers tax-free payments each month to veterans who became sick or injured while on active duty or whose service worsened an existing condition.
- Total and Permanent Disability (TPD) discharge: Veterans with federal student loans can qualify for student loan discharge through the TPD program.
The U.S. Department of Veterans Affairs website provides more information on benefits for disabled veterans, including those related to healthcare, education, training and housing assistance.
Best Personal Loans for Veterans & Military Members Ratings of March 2024
Best Personal Loans for Good Credit
Best Personal Loans for Bad Credit
Frequently Asked Questions (FAQs)
How long do you have to be in the military to qualify for a VA loan?
You must serve for 90 continuous days in the military to qualify for a VA loan, which is a type of loan that helps servicemembers, veterans and their families purchase homes.
Does the VA offer personal loans?
The Veterans Affairs (VA) does not offer personal loans. VA loans give military service members and veterans the ability to purchase a home. Militarybenefits.info also states, “You cannot buy a home with a VA loan, apply for more money than you need to purchase and close the deal and take the remainder in cash.” This means there isn’t a loophole for using VA loan money to finance personal expenses, as you would with a traditional personal loan.
What credit score do I need to get a personal loan as a veteran?
Minimum credit score requirements vary depending on the lender you choose to apply with. Because loan terms, such as interest rates, fluctuate based on your credit score, it’s always a good idea to improve your credit prior to applying for a loan. A score of at least 670 can help get you the most favorable loan terms. However, there are bad credit veteran loans available that require a minimum credit score of 580.
Can active-duty military members get loans?
Yes. Active-duty military members can access financing while they are serving the country. Similar to veterans, active-duty members have the choice of applying for a personal loan through a credit union that caters specifically to military members or a traditional bank or online lender. However, credit unions that require military service for membership typically have more perks and benefits that can assist active-duty members.
Do veterans get free loans?
Veterans, along with active-duty military members, don’t get free loans. However, they may be eligible for interest-free loans, where the borrower only pays back the borrowed amount. They may also be eligible for grants, which is a lump-sum amount of money that doesn’t have to be repaid and might be seen as a free loan.
Where can you find emergency loans for veterans?
Emergency loans help cover unexpected expenses, including medical bills, rent or mortgage payments, utilities, funerals and home or car repairs. Veterans can find the best emergency loans through a variety of online lenders.
Are there any grants for disabled veterans?
The U.S. Department of Veterans Affairs offers housing grants for veterans and service members with specific service-connected disabilities to help them buy or change a home to live more independently. These grants include Special Housing Adaptation (SAH) and Temporary Residence Adaptation (TRA) Grant. You can apply online.
What are military spouse loans?
Military spouse loans are personal loans that cater to active-duty military members that also include spouses as eligible borrowers. For example, from the lenders on our list of the best personal loans for veterans and military members, Navy Federal Credit Union, USAA and PenFed offer military spouse loans.
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