Veterans can use a personal loan to cover a large unexpected expense or to consolidate debt. Other financial resources may be available to eligible veterans.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and heres how we make money.
Veterans transitioning to civilian life may face some financial difficulties. There are options available that can help, including federal benefits, various grants and assistance finding long-term employment.
A personal loan — money borrowed from a bank, credit union or online lender that’s paid back in fixed monthly installments — is another financial resource for veterans, especially if they need to cover a large unexpected expense or consolidate high-interest credit card debt.
Getting disabled while serving your country in the military can completely change your life Managing disabilities often comes with significant medical expenses and impacts your ability to work This can make it hard to qualify for a personal loan or get decent loan terms from traditional lenders.
Luckily, there are several lenders that offer personal loans specifically geared towards veterans including disabled veterans. These loans can provide access to financing that may be difficult to find elsewhere.
In this article, we’ll cover everything you need to know about getting a personal loan as a 100% disabled veteran. We’ll go over:
- What personal loans are and how they work
- Benefits of personal loans for disabled veterans
- Types of lenders to consider
- Tips for getting approved
- The best loan providers for disabled veterans
What Are Personal Loans and How Do They Work?
A personal loan is money borrowed from a bank, credit union or online lender that you repay in fixed monthly payments over a set repayment term Personal loans can be used for almost any purpose, from consolidating debt to financing medical procedures and more
Unlike other types of credit, personal loans have fixed interest rates, terms and monthly payments. This allows borrowers to easily budget for the predictable repayment schedule.
Personal loans are either secured or unsecured:
- Secured loans require collateral like your car or home. The lender can seize the collateral if you default.
- Unsecured loans don’t require collateral. This makes them riskier for lenders, so interest rates tend to be higher.
Since disabled veterans are less likely to have assets like a home to use as collateral, unsecured personal loans tend to be the best option.
Benefits of Personal Loans for Disabled Veterans
Personal loans offer several advantages for disabled veterans compared to other financing options:
-
Fast access to cash – Once approved, funds are deposited directly into your bank account, usually within a few business days. This allows you to pay for expenses right away.
-
Fixed payments – With a fixed rate and term, it’s easy to budget for a predictable monthly payment amount.
-
Flexible usage – Funds can be used for anything from medical bills to debt consolidation. There are no restrictions like with mortgages or auto loans.
-
May improve credit – Making consistent on-time payments can improve your credit score over time. This makes it easier to qualify for financing in the future.
-
No collateral required – Unlike secured loans, personal loans don’t put your assets at risk if you default.
Types of Lenders to Consider
There are several options when it comes to getting a personal loan as a disabled veteran:
Banks and Credit Unions
Banks and credit unions based near military installations will often provide personal loans to active duty and former military members. For example, Navy Federal Credit Union offers personal loans specifically for disabled veterans.
Pros:
- Lower interest rates for members with good credit
- Access to branches/ATMs for assistance
Cons:
- High minimum credit scores
- Strict membership requirements
Online Marketplace Lenders
Online lenders like Prosper and LendingClub operate entirely online. They use algorithms to approve borrowers, allowing them to accept lower credit scores.
Pros:
- Fast online applications and funding
- Approve borrowers banks may deny
Cons:
- Higher interest rates than banks
- Difficult to speak to customer service
Peer-to-Peer Lending
With peer-to-peer lending sites like Upstart, you borrow directly from individual investors instead of a bank. Investors bid on loan requests and set rates based on perceived risk.
Pros:
- Alternative for borrowers banks deny
- Interest rates can be negotiated
Cons:
- Less predictable approval
- Higher interest rates on average
Payday/Title Loans
Payday and title loans provide quick cash, but at an extremely high cost. Interest rates often exceed 100% APR and quickly spiral out of control. These should only be considered as an absolute last resort.
Tips for Getting Approved
As a disabled veteran, getting approved for a decent personal loan can be challenging. Here are some tips that can help improve your chances:
-
Shop around – Comparing rates and terms from multiple lenders gives you the best shot at approval on favorable terms. Online prequalification tools allow you to check your likelihood of approval without impacting your credit score.
-
Review your credit – Checking your credit reports for errors can help boost your score. Paying down balances, avoiding new credit applications, and sticking with your payment schedule on existing debts will also help improve your credit profile over time.
-
Consider a cosigner – Adding a cosigner with better credit can increase the chances of getting approved and lower your interest rate. Just make sure the cosigner understands they’ll be equally responsible for repaying the loan.
-
Use collateral if possible – Even if collateral isn’t required, putting up an asset as security can help you qualify and get a lower interest rate. Only use this option if you can comfortably afford payments to avoid losing the collateral.
-
Explain special circumstances – Letting the lender know you’re a disabled veteran can help provide context for things like past credit issues and lower income.
The Best Loan Providers for Disabled Veterans
Based on their accommodation of disabled borrowers, flexible qualification requirements and loan terms, here are some of the best personal loan providers for disabled veterans:
PenFed Credit Union
PenFed offers some of the most competitive rates and flexible terms ideal for disabled veterans:
- APRs as low as 7.99%
- No origination fee
- Minimum credit score of just 600
- Loan amounts up to $50,000
- Terms up to 60 months
While membership is required, PenFed has an easy online enrollment process open to all veterans.
Veterans United
Veterans United is designed specifically to serve the needs of former and current military members. Their personal loans offer:
- No minimum credit score
- Loan amounts up to $35,000
- Terms up to 72 months
- Dedicated loan specialists
They work with borrowers to understand their unique situation and provide flexible approval.
Avant Personal Loans
Avant uses alternative credit data for automated approvals, helping borrowers who may not qualify elsewhere.
- Minimum credit score of just 580
- Loans up to $35,000
- APRs starting at 9.95%
- Terms from 24-60 months
The online process delivers funds quickly after approval.
LendingClub
LendingClub offers an easy online application and provides competitive rates for borrowers with mid-range credit:
- Minimum credit score of 600
- Up to $40,000 loan amount
- APRs starting at 8.05%
- Terms from 36-60 months
They can deposit funds within a few business days after approval.
Final Thoughts
Personal loans can provide disabled veterans with accessible financing to pay for anything from medical procedures to debt consolidation. Shopping around and taking steps to improve your credit profile are key to getting approved on the best terms.
Prioritizing lenders who accommodate veterans specifically, like PenFed and Veterans United, can increase your chances of success. With a strategic approach, personal loans offer an affordable way for disabled veterans to get the financing they need.
PenFed Credit Union Personal Loan
There are a few things to consider as you compare personal loans.
Annual percentage rate: Theannual percentage rate includes the loan’s interest rate and any fees, and it’s one of the best ways to measure affordability. For example, a two-year $5,000 loan with a 15% APR would cost $818 in interest. The same loan with a 10% APR would cost $537 in interest. The lower the APR, the cheaper it is to borrow the money.
Monthly payments: Consider a personal loan only if youre certain you can afford the monthly payments for the full term. Missing loan payments can lead to costly fees and lower your credit score, so make sure there’s enough room in your budget. Use our personal loan calculator to estimate your monthly payment.
Repayment term: Repayment terms on personal loans usually range from two to seven years, though longer terms are available from some lenders. If you choose a longer repayment term, you’ll have lower monthly payments, but you’ll also pay more in interest.
Funding time: Online lenders tend to fund loans faster than banks or credit unions, which can take a few days to a week to deposit the money into your account after you’re approved. Many online lenders promise next- or same-day funding.
Special perks: Lenders will offer other benefits that may appeal to you. For example, if you’re using a loan to consolidate debt, you may want to search for lenders that offer direct payment to creditors, meaning they’ll send the money to your credit card companies so you don’t have to. Other lenders may include free financial education or a free monthly credit report as part of their loan product. Some lenders may offer special perks to active duty or retired military, like a rate discount.
How to get a personal loan for veterans
Once you’ve pre-qualified with multiple lenders, it’s time to pick one and apply.
Personal loan applications are typically available online. You’ll be asked to provide basic personal information, including your Social Security number, and contact information like a home address, phone number and email address.
You also may be asked to show proof of identification and proof of employment and income.
After submitting your application, approval time can be instantaneous or take a few days, depending on the lender. Funding time also ranges from same-day to one week.
Once your loan is funded, you’ll want to make a plan for managing your payments, so you don’t fall behind on the loan.
How Social Security Disability handles Veterans with a 100% Disability Rating?
FAQ
Can I use my VA disability to get a personal loan?
What is the VA personal loan rate?
Does the VA give out loans?
Does the VA do cash advances?
What are the best personal loans for disabled veterans?
PenFed has an excellent combination of low rates and fees, large loan amounts, and long payoff periods. LightStream has the best personal loans for disabled veterans because they offer loans specifically for medical financing with low APRs and no origination fee.
Can disabled veterans get a loan?
Disabled veterans can apply for personal loans at traditional financial institutions such as banks or credit unions, as well as with online lenders. In addition, they could qualify for financial products like housing loans or grants, as well as small business loans.
What types of personal loans are available for veterans?
Available to military service members and their families, VA personal loans provide funds you need within days. VA Mortgage Loans up to $417,000 with no down payment. Business loan amounts for veterans up to $350,0000 and 1-5 year terms. Apply for a personal loan for any purpose, up to $40,000 with fixed rates.
Can veterans get a business loan?
Business loan amounts for veterans up to $350,0000 and 1-5 year terms. Apply for a personal loan for any purpose, up to $40,000 with fixed rates. The personal loan options at VA Financial have low, fixed interest rates as low as 5.99% APR. Also, these loans offer long term loan periods of your choosing, between 1 and 5 years.
What are VA personal loan options?
The personal loan options at VA Financial have low, fixed interest rates as low as 5.99% APR. Also, these loans offer long term loan periods of your choosing, between 1 and 5 years. Apply for VA personal loan financing designed just for you. Easy and fast financing starts here. Borrow up to $40,000 with a personal loan for veterans.
What are the best personal loans for veterans with fair credit?
U.S. Bank has the best personal loans for veterans with fair credit because it offers long payoff periods, giving you 12 – 84 months to repay what you borrow, and it does not charge an origination fee. U.S. Bank also offers the opportunity for low APRs (though you’re unlikely to get the lowest possible APR with fair credit).