Advertiser Disclosure
Many of the offers that appear on this site are from companies from which The Motley Fool receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear), but our reviews and ratings are not influenced by compensation. We do not include all companies or all offers available in the marketplace.
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
David S. Chang, ChFC®, CLU® is an award-winning entrepreneur, keynote speaker, author, and consultant. He has over two decades of experience in the wealth management space and has been featured in dozens of news, radio, and podcast programs nationwide. He currently works as Head of IoT for the West Region of a Fortune 200 company. He is a graduate of the United States Military Academy at West Point and currently a Lieutenant Colonel in the California Army National Guard. He is an East-West Graduate Degree Fellow and has an MBA from the UCLA Anderson School of Management.
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
Personal loans for veterans are different than traditional personal loans and are tailored to their specific needs. When it comes to finding the best personal loans for veterans, it's important to look for lenders that specialize in serving military customers. With a little research and a willingness to shop around, veterans can find the perfect personal loan to suit their needs.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Min. Credit Score: 680
Loan Amounts: $5,000 - $100,000
APR Range: Fixed: 8.99%-29.99% APR (with all discounts)
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
3.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
LightStream offers competitive interest rates with high loan limits. Also, LightStream doesn't charge fees. LightStream offers the Rate Beat Program, where LightStream will offer a rate 0.10 percentage points lower than the rate offered on any competing lender's unsecured loan, provided you were approved for that lower rate. All in all, this is one of the most competitive personal loan lenders you'll come across. The catch is that LightStream has stricter borrowing requirements than some other lenders.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
With SoFi, you can prequalify and view your rate without hurting your credit score. There are no fees and you can get your funds on the same day your loan is approved. SoFi offers a wide range of benefits for its members. In addition to its financial products, SoFi offers educational resources, personalized financial advice, a discount on estate plans, and many different types of loans.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
NFCU are experts at working with veterans and understand some of those challenges that face many families at discharge or retirement. It offers a wide range of loan types, terms, and competitive rates. Navy Federal offers loans as low as $250.
3.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
USAA is one of the top financial institutions for service members, veterans, and their family members. It has competitive interest rates and offers loans as high as $100,000. USAA also has no application or early repayment fees.
Flexible loan options
Wide range of financial products and services
Customer service
No application or prepayment fees
Interest rate discount for automatic payment
Only military members, veterans, and family members qualify
Longer payment terms require higher personal loan amounts
Cannot be used for higher education
What can I use my personal loan to pay for?
Typically, you can use a personal loan to pay for just about anything, except higher education. Whether you're building an addition to your home or using the funds to move across the country, the money you borrow is yours to use as you see fit.
Some lenders won't even ask you during the pre-approval process how you plan to spend the funds. However, other lenders may request this information since the type of personal loan will determine the terms and rates.
How high does my credit score need to be?
The minimum required credit score needed to qualify for a personal loan varies by lender. Some lenders may place more weight on other factors, such as length of time in your current job. Still, it's universally accepted that the higher your credit score, the better your odds of being approved for a loan.
If your credit score is below 670, you may be considered a subprime borrower. As a result, lenders perceive you as a higher risk, which can lead to an increase in your interest rate. The higher your score, the lower the interest rate you are likely to be offered.
What is debt-to-income ratio and why does it matter?
Debt-to-income (DTI) ratio is a mathematical calculation that lenders use to figure out how much of your monthly income is already earmarked to make other payments. For example, if you earn $5,000 per month and your monthly payments add up to $2,000 per month, a lender will divide $2,000 by $5,000 to learn that your DTI is 40% ($2,000 ÷ $5,000 = 0.40).
Ideally, a lender hopes to see a DTI of 36% or less. That tells the lender that you're not overextended and can afford to take on another debt. However, that does not mean that all lenders require a DTI of 36% or lower. The acceptable DTI varies by lender, with some accepting DTIs in the 40s.
The important point here is that it's a good idea to keep your debts low. Not only will a low level of debt reduce your stress levels, but it can make it easier for you to land a loan when you need it.
Can I qualify for a personal loan if I'm receiving disability payments?
Absolutely. As long as your credit score is high enough and your DTI is low enough, a lender is happy to loan money to anyone who provides evidence that they are able to make the monthly payments. If your disability benefits can cover the loan payment, you'll be fine.
How to find the right lender for me
You'll notice that two of the four lenders we've recommended specialize in their work with veterans. That's because they possess the ability to understand your unique situation. Here are some of the other hallmarks of a great lender:
Explains the loan process
Answers your questions (and phone calls)
Offers a fair interest rate and loan terms
How can I qualify for the lowest interest rate?
Most lenders consider three things when determining whether you qualify for a loan and how much you'll need to pay in interest:
Your FICO® Score
Your DTI
Your ability to repay the loan
FICO® Scores range from a low of 300 to a high of 850. A high score tells a lender that you've managed debt well in the past, while a low score indicates that you've hit a financial bump or two. A high score also indicates that you don't carry more debt than you can afford to repay. Therefore, you're more likely to be approved to borrow the loan amount you seek.
If you've ever wondered how a lender views your FICO® Score, this table will give you an idea.
IF YOUR FICO® CREDIT SCORE IS IN THIS RANGE…
...THEN YOUR SCORE IS GENERALLY CONSIDERED…
800-850
Exceptional credit
740-799
Very good credit
670-739
Good credit
580-669
Fair or average credit
579 or lower
Poor credit
Data source: www.myFICO.com
Will my application be rejected if I have a low FICO® Score?
Not necessarily. But remember, the lowest interest rates and best loan terms are reserved for borrowers with good credit scores. If you're worried that a low FICO® Score will result in your application being outright rejected, don't panic just yet. While your credit score will indeed play a big role in the decision-making process, it's not the only factor at play.
Financial institutions will consider other aspects of your financial profile, like your employment history, income level, and debt-to-income ratio. By highlighting your strengths in these areas, you can showcase your overall financial responsibility and make a stronger case for why you should be approved.
Does my interest rate really matter all that much?
Let's say you borrow $15,000 to make a cross-country move. You plan to repay the loan over 36 months. This table offers a sense of how much you might pay for the loan with different credit ratings:
Credit Rating
Interest Rate
Monthly Payment
Total Interest Paid
Excellent Credit
10.73% - 12.50%
$501.80
$3,064.96
Good Credit
13.50% - 15.50%
$523.66
$3,851.77
Fair Credit
17.80% - 19.90%
$556.69
$5,040.83
Poor Credit
28.50% - 32%
$653.32
$8,519.38
Data source: Author calculations using a loan calculator
Is it possible to improve my credit score?
It is possible to raise your credit score, although it's important to avoid any company that promises to wipe out your debt or automatically improve your credit. They are scams and are unable to do anything that you can't do yourself.
Here are some steps you can take to raise your score:
Order your credit report
You're entitled to one free credit report annually from each of the "big three" credit reporting agencies -- Transunion, Equifax, and Experian. You can order all three at once from a site like annualcreditreport.com. Once you receive your reports, go over each one carefully to look for mistakes. If you find a mistake, report it to the agency in question. It has 30-45 days to either prove the entry is right or remove the mistake from your report.
Build your credit history
If you have no credit, building a credit history can be as simple as opening a department store credit card, using it, and paying it off in full each month. You could also ask someone with a high credit score to name you as an authorized user on their credit card. You never even have to touch the card. Each time the credit card owner makes a payment, it's reported to the credit reporting agencies as though you made the payment too.
Pay down debt
Remember, creditors want to know that you manage money well. The less you owe, the better it makes you look. As long as you're able to keep up with payments, a debt consolidation loan is a good way to pay debt off at a faster clip while also improving your DTI.
Seek help if you need it
If you're in over your head financially, there are nonprofit services that can help. Some not only help you build a workable budget, but also help you get to the root of the debt problem. Beware of debt relief programs that offer to help wipe out your debt for a fee. What you're looking for is a not-for-profit organization like Consolidated Credit with trained counselors who can help you understand your options.
You've sacrificed for your country, and you deserve the best it has to offer. If your credit score is strong, you'll have your choice of lenders. If it's not quite where you want it to be, don't lose hope. Millions of people have taken the steps required to turn bad credit into good.
FAQs
The minimum required credit score varies by lender. What's interesting is that two of the top lenders specializing in loans for veterans do not disclose a minimum credit score. However, the higher your credit score, the lower the interest rate you will be offered.
Your VA disability will count towards your debt-to-income ratio. You may not be able to borrow from your disability, but if you receive VA disability benefits, have a good credit score, and are able to repay a loan, there's a good chance a lender will approve your loan application.
Each lender has set its own maximum debt to income ratio for personal loans. That said, the maximum ratio for a VA home loan is 41%, higher than the 36% considered "ideal" by many lenders.
Like any personal loan, there are a number of reasons a lender may not approve a veteran's loan. They include:
Poor credit score
High debt-to-income ratio
Insufficient income to make the monthly payment
Lying on an application
Share This Page
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Upstart. The Motley Fool has a disclosure policy.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Upstart. The Motley Fool has a disclosure policy.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Fact Checked
Nathan Alderman
2024 Award Winner
