USAA offers personal loans up to $5,000 for a myriad of things that you need to do, but don’t have the cash for. For example, when I was 22 years old, I lost control of my Chevy malibu and hit a median at 70 mph. I didn’t have the cash to buy a new car and I couldn’t wait for the insurance to kick in, so I applied and received a personal loan for $5,000. This loan allowed me to buy a new car 3 days after my accident so I could get to and from work without bumming rides. Personal loans also take care of emergency bills, remodels, repairs, and bills that you can’t pay off on your own.
Table of Contents
- What Can I Use a Personal Loan For?
- What Are the 2 Types of Personal Loans With USAA?
- How Do I Apply for a USAA Personal Loan?
- What Companies Should I Consider Instead of USAA?
What Can I Use a Personal Loan For?
A personal loan is a great way to get a small amount of cash quickly, without having to put the expense on the credit card. A personal loan can be used to cover anything from a used car to a new pool in your backyard. Most people use personal loans to cover bills that they can’t pay for before the due date of the collection. If your water heater goes out in the middle of winter and you don’t have the $5,000-8,000 for a new one, you can apply for a personal loan and get the cash within a few hours of your application. As we all know, medical bills can be incredibly expensive and overwhelm your family’s budget constraints. Personal loans can help relieve the stress and burden you feel when you’re running low on cash.
Can I use a Personal Loan For College?
One of the complaints about USAA is they no longer provide student loans, so you will not be allowed to use this loan for education. There are many ways you can either save up for college or find a legitimate loan company. Many of the companies listed below offer great deals with low-interest rates because they’re fighting with each other to earn your business. My recommendation is to call all 10 companies and get a quote from each of them. Once you do this, I would call them back and give each company to undercut the lowest bid. This is the best way to get the best possible price on a loan and take advantage of capitalism at its finest. If you’re looking for a way to refinance your student loans, start here.
What Are the 2 Types of Personal Loans With USAA?
There are 2 types of personal loans that you can qualify for with USAA, depending on how much you’re asking for and how much collateral you have. The first loan type is called a Secured Loan, which requires you to put down collateral before you can be approved. Secured Personal Loans will normally offer much lower interest rates than an Unsecured Personal Loan. A Secured Loan is the way to go if you have a higher credit score and are more secure with your financials because your collateral will be used to pay back the loan if you can’t pay it off in time. However, an Unsecured Loan doesn’t require any collateral at all and will most likely have a higher interest rate.
What Are the Interest Rates For a Personal Loan With USAA?
Interest rates can be tricky because there are multiple variables that dictate what rates you get offered. For example, if your credit score is above 700 and you don’t have too much debt, you can get rates as low as 7.24%. However, if you have a credit score lower than 700, you can be stuck with an interest rate of 17.65% or higher for an unsecured loan. You’ll have to call USAA or apply online to figure out what they will offer you as everyone’s financial situation is different and unique to them.
Why Should I Choose A Personal Loan With USAA?
If you’re a USAA member with decent but not great credit, I’d get a personal loan with USAA. There are no origination fees, which can be up to $75 for some competitors and no prepayment fees. The loan process with USAA will save you around $100 versus its competitors and even offers a discount for using the autopay feature. For example, if you use the direct deposit autopay feature, you could save up to 25%. A personal loan is also better than using your credit card because the interest rates are lower with the personal loan than they’re with a credit card.
Why Should I Not Choose A Personal Loan With USAA?
As everyone reading this should know by now, USAA is a member bank that requires some affiliation with the military. If you have a higher credit score, you’ll get a rate as low as 7.24%, but many competitors can go as low as 4% for excellent credit scores. If you miss a payment or forget to make a payment by the deadline, you’ll be charged a 5% late fee! Most companies will disclose the interest rates off the bat, but USAA requires that you call them and work the rate out before your quote. If you need more than $5,000, you’ll have to look for another loan or find a different company.
How Do I Apply for a USAA Personal Loan?
The first thing you need to do is go to the USAA Personal Loan Calculator and determine how much money you need to borrow. It’s important to figure out how much you’ll need before you talk with USAA so you can be confident and secure in what you’re looking for. Follow the steps below and you’ll have your loan as quickly as possible:
- Go to USAA Personal Loan Page
- Click the Apply button (3 Apply Now buttons all go to the same page)
- Fill out the Application (Takes about 5-7 minutes)
- Once approved, you’ll be given your interest rate (most of the time)
- It could take up to 24 hours to receive your money (normally a few hours with direct deposit)
What Companies Should I Consider Instead of USAA?
The fact is that USAA is not the company they were a decade ago and is no longer accredited by the Better Business Bureau (BBB) due to a failure in abiding by federal regulations. I believe they’re still a good company relative to most other companies, but there is no denying they’ve fallen off quite a bit. With this in mind, I recommend looking at the Navy Federal Credit Union or a local credit union. Looking elsewhere will only benefit you in finding the best possible deal for your needs and mate get USAA to self-reflect a little bit.
For whatever reason, the Navy Federal Credit Union has remained more consistent with their customer service than USAA has. Perhaps, it’s because they haven’t grown at the rate as USAA has and still feels appreciative of the business. The Navy Federal Credit Union offers personal loans up to $50,000 instead of the $5,000 that USAA offers. They also offer similar interest rates with a low of 7.49% and a high of 18% for loans up to 36 months. The Navy Federal Credit Union is also accredited by the BBB for their attentiveness and adherence to federal guidelines.