Best loans for the Armed Forces

Many lenders offer military personnel and their families loans, both active-duty and retired. Our top four list will help you choose the right lender.

A personal loan can be used to cover almost any expense, whether you are active duty or retired

Best for service members with poor credit: USAA

Why USAA stands apart?

USAA was founded in 1922 and has served more than 13,000,000 military personnel. USAA personal loans have a lower maximum APR than other lenders and may be an option for military members, their families, veterans, and those with past credit problems.

• Member must be: To obtain a personal loan, and you will need to be a USAA member. You can join as long as you are a member of the military, a veteran or a commissioned officer.
• Get a 0.25% discount on autopay rates if you set up automatic payments. You can change the automatic payments at any time. This feature is not easily accessible on the USAA website. You may need to contact your lender for more information.
• USAA does not charge prepayment penalties or application fees. This is excellent news, especially if your goal is to repay your loan early.

For service members with good credit, PenFed is the best:

Why Pentagon Federal stands apart? 

Although anyone can join the Pentagon Federal Credit Union, it was initially created for military personnel. It offers programs that support members of the armed forces. The low start APR makes it ideal for veterans with strong credit histories.

• Only members — To get a personal loan, join PenFed. Although membership requirements are not strict, you will need to open a savings account with at least a $5 deposit.
• You can apply for prequalification: PenFed lets you prequalify online without affecting your credit. This will help you determine if you are eligible for the lowest interest rate. Note: You won’t be approved for a loan until you submit a formal request.
• You can get your money quickly — Depending on which bank you have, you may receive your funds by direct deposit the next day. However, if you prefer a paper check, you will need to wait several days.

Ideal for military families looking to consolidate their debts: Marcus

Why Marcus is different?

Marcus offers personal loans to everyone. It also has options for military families looking to reduce high-interest debt. Marcus provides debt consolidation loans to consolidate debt and sends money directly to creditors. These fixed-rate loans are available for up to $40,000 with no fees.

• On-time payment reward — Marcus will give you the option to defer one payment without any additional interest or fees if you make 12 consecutive on-time payments. This is a great option if you are short of cash or have made a large purchase in the last month.
• Explore your options. Apply online for prequalification to see what loans you might be eligible for without affecting your credit score. Prequalification does not guarantee approval. You may be offered terms that are different after you submit a complete application.
• You must meet strict eligibility criteria. It may be difficult to qualify for a Marcus personal loan if you don’t have great credit. The 2020 Goldman Sachs annual report shows that most instalment loan borrowers had at least 660.

For service members who have a high expense: SoFi

Why SoFi stands apart?

SoFi loans are available from $5,000 to $100,000. This makes SoFi an excellent choice for anyone, even military personnel, looking to finance large expenses. SoFi personal loans are available to help you furnish your home, finance a home renovation project, pay for family planning, or meet any other financial need.

• Members get perks: Once you are approved for a SoFi loan, you will become a member to enjoy many perks. You’ll be able to get interest rate discounts on loans you already have and also enjoy career coaching and special events such as happy hours and dinners.
• Unemployment protection: If your civilian job is terminated, you might be eligible to pause payments while you search for a new one. SoFi can also assist you in your job search.
• No fees – SoFi does not charge interest. SoFi loans are free from origination fees, late payments fees and prepayment penalties.