Veterans are often the highest unemployed demographic in America. Because of this, many former military personnel struggle with bad credit. Though there are many programs out there to help, the government doesn’t offer direct loans for vets at this time.
If you have poor credit, and you served in the U.S. armed forces, your best bet is to work with one of the online bad credit loan lenders below.
Best Installment Loans for Vets with Bad Credit
Installment loans are the best choice if you need a large amount of cash but also need manageable monthly payments. Listed below are loan brokers that connect borrowers with lenders.
Loan brokers are ideal for bad credit borrowers because one application is seen by multiple lenders who are the most likely to lend to you. Normally, you would have to submit an individual application to each lender, but working with a loan marketplace makes it a convenient, faster process to find the best loan options.
BadCreditLoans.com
Features & Benefits
- No cost to check loan approval
- High approval rate despite credit history
- Funds available as soon as next business day
- Assisting people with bad credit since 1998
Bad Credit Loans is an online lender marketplace that allows you to connect with multiple lenders by filling out a single application. The service is 100% free.
Once you’re approved, your lender will provide you with the APR, loan fees, and other terms.
Read through the terms, compare all the offers you’ve received, and only accept the loan you’re most comfortable with. You are not obligated to accept the personal loan from any lenders that you are matched with.
PersonalLoans.com
Features & Benefits
- Multiple loan types available
- Fast loan decision
- Funds deposited as soon as you accept an offer
- Nationwide availability
PersonalLoans.com offers access to multiple loan types through a network of lenders, catering to individuals with credit scores as low as 600. Each lender provides unique rates, allowing you to choose the best offer for your needs.
The online application process is quick and easy, taking just minutes to complete. You’ll receive a decision within one business day, and approved funds can be deposited shortly after you accept an offer.
NetCredit
Features & Benefits
- Poor credit or little credit history is OK
- Excellent customer reviews
- No prepayment penalties
- Only available in 37 states
NetCredit is a direct lender that might be able to fund your needs quickly. Plus, if you change your mind about the loan, you will be able to return it within one business day.
If your needs can be covered with a loan of $10,000 or less, then you should consider working with NetCredit. They also offer lines of credit to customers in some states.
Never take out a loan you don’t need just to raise your credit score. There are other ways to do so that won’t put you in at financial risk. However, installment loans are a great choice for when you do need the money. The monthly payments are more manageable than short-term loans and can be easily budgeted with many incomes.
With a longer term, you will pay more in interest over the life of the loan, but your credit score will see a boost if you make those payments on time. We recommend signing up for automatic bill pay so know exactly how much is coming out each month and each payment will be made on time.
Best Short-Term Lenders for Vets with Bad Credit
When you need a small amount of money to tide you over, a short-term loan can be a good option. These loans are designed for financial emergencies.
The following online marketplaces connect you with short-term funding that you can receive in your bank account quickly. Plus, you still get access to multiple lenders by filling out just one application.
CashUSA
Features & Benefits
- Flexible borrower requirements
- Loan request can be approved within minutes
- Money deposited as early as 1 business day
- All credit types accepted
CashUSA connects borrowers with lenders. Each application is sent to the lender most likely to lend to the borrower. This platform caters to a diverse range of credit profiles, making it more than just a broker for those with poor credit.
Interest rates vary depending on the lender, so make sure you read through the terms for each emergency loan before you choose. Applying online only takes a few minutes, and funds are often available the next day.
MoneyMutual
Features & Benefits
- Application takes less than 5 minutes
- Get a decision on your loan within minutes
- Funds are available within 24 hours
- Trusted by more than 2,000,000 borrowers
MoneyMutual is an online marketplace of lenders. They make it quick and easy to find a short-term cash advance loan in as little as 24 hours.
One application can potentially get you multiple loan offers. MoneyMutual has been trusted by more than two million customers. They serve borrowers with bad credit from all 50 states except New York and Connecticut.
Best Banks and Credit Unions for Veterans
For a more personal touch, consider looking for financing at a bank or credit union that specializes in working with military members. They often have options that are specifically designed for veterans.
Navy Federal Credit Union
Features & Benefits
- Membership available to veterans, active duty, and retired members of all branches of the armed forces
- Join with a social security number, government ID, current address, and credit card or bank account and routing number
- Personal loans available up to $50,000 for terms up to 60 months
- Shares secured loans available for bad credit and are backed by savings in your account
PenFed Credit Union
Features & Benefits
- All members of U.S. military are eligible for membership
- Personal loan amounts range between $500 and $25,000
- No origination fees
- You can get immediate access to funds upon approval
USAA
Features & Benefits
- Designed for current and former members of the military.
- Personal loan decisions usually instant.
- Funding available the next day.
- Minimum loan amount is $2,500.
- Loans over $20,000 available.
Personal loans come in two forms: short-term loans and installment loans. Which one you choose depends on how much you need to borrow, and fast you want to pay everything back.
Installment Loans vs. Short-Term Loans
Installment loans allow you to borrow larger amounts. If your income supports it, you can borrow as much as $35,000 if needed. Loan terms vary depending on the amount owed and the lender but can be as long as six years (72 months).
Short-term loans are best for when you only need a small amount of money, and you are able to pay it back fast. The maximum amount of money you can borrow with a short-term loan is usually around $2,500. They come in two forms: loans that must be paid back all at once, and loans that can be paid back in increments over a longer period of time.
How Interest Rates and Fees Impact Your Loan
Before taking out a loan, it’s important to know how interest rates and fees can affect the overall cost. The Annual Percentage Rate (APR) reflects both the interest rate and any fees charged by the lender. Small differences in APR can make a big difference in how much you’ll pay over the life of the loan.
For example, let’s say you borrow $5,000 on a 36-month loan with a 10% APR. Your monthly payment would be about $161, and by the time the loan is fully paid off, you will have spent roughly $5,796 total, including $796 in interest.
However, if the same $5,000 loan had an APR of 25%, your monthly payment would rise to around $199. By the end of the 36-month period, you will have paid about $7,162, with $2,162 going toward interest.
Important Factors to Consider:
- APR: The lower the APR, the less you’ll spend in interest. Always compare APRs between lenders.
- Loan fees: Be aware of any extra fees such as origination fees, late payment fees, or penalties for early repayment.
- Loan term: Loans with longer repayment periods can reduce your monthly payments but increase the total interest paid over time.
Knowing how interest and fees work helps you see the true cost of borrowing. Comparing offers and choosing the most affordable option can save you money over the life of the loan.
Improving Your Credit Score with Personal Loans
Bad credit loans can be used to help build your credit scores or even for debt consolidation. Consolidating credit card debt can help you improve your credit in several ways. Doing so can help you get better interest rates on loans and credit cards in the future.
The biggest factor is making all of your payments on time. Not only will you avoid late fees, but you’ll also start to accumulate positive entries on your credit report as long as the lender reports to one or more credit bureaus.
You’ll also be able to borrow larger amounts as you create a solid track record because you’ve shown your ability to make your payments on time.
For veterans who need help with a financial emergency, an online personal loan for people with poor credit can be an effective solution. Read your terms and conditions carefully and stay committed to making payments on time to reap the full benefits of your loan.
Veteran-Specific Financial Benefits
Before applying for a personal loan, veterans should consider exploring other financial benefits and programs designed specifically for former service members. These options can provide more favorable terms than traditional loans and may reduce the need for personal borrowing:
- VA home loans: The Department of Veterans Affairs (VA) offers VA-backed home loans to help veterans, service members, and eligible surviving spouses buy, build, or refinance homes. These loans typically come with lower interest rates, no down payment requirements, and no private mortgage insurance (PMI) obligations.
- VA-backed credit options: In addition to home loans, some financial institutions offer VA-backed credit cards and lines of credit. These options can help veterans access credit with more flexible terms and better interest rates than traditional lending products.
- Military relief societies: Organizations like the Army Emergency Relief (AER) and the Navy-Marine Corps Relief Society (NMCRS) provide interest-free loans and grants for emergency needs, including rent, medical expenses, and vehicle repairs. These resources may help veterans avoid high-interest personal loans.
Additional Financial Resources for Veterans
In addition to personal loans, veterans can access various organizations that offer financial assistance, grants, and counseling services specifically for former military personnel. These resources can help you manage financial difficulties or explore other funding options:
- Veterans United: Specializing in VA home loans, Veterans United provides financial education and support for veterans looking to buy homes or refinance existing mortgages. They offer expert guidance through the entire process of securing VA-backed loans.
- USA Cares: This nonprofit organization offers financial assistance to veterans, active service members, and military families. They focus on emergency financial needs, job training, and housing assistance. USA Cares also provides grants to help veterans avoid taking on high-interest loans.
- Operation First Response: Operations First Response offers financial aid to wounded veterans and their families, focusing on housing, transportation, and essential living expenses.
