After serving the country for several years, you are surely highly respected. But a financial crisis may still creep up in your life. A personal loan can help you enormously. What if you have a bad credit score?
In this article, top credit experts explain, “Can veterans get personal loans with bad credit score?” In short, yes, you can secure a personal loan with a bad credit score. There are organizations like the Navy Federal Credit Union, USAA, PenFed, etc. They provide personal loans to current and veteran force personnel with bad credit scores.
Let’s discuss in detail the loan-taking process from this organization.
Taking a Personal Loan from NFCU
As a veteran, you can easily take a personal loan from NFCU. This organization is designated to provide financial support to present and past armed forces members. It does not have any specific requirement related to credit score. In short, you can get a loan from NFCU with a bad credit score.
Below is the loan-taking process.
Step 1: Become a member of the Navy Federal Credit Union.
Step 2: Collect all the required financial documents like credit history reports, bank statements, etc.
Step 3: Apply for the personal loan online by completing the form and submitting the required documents. However, if you will use the loan amount for home repair and debt consolidation, you have to apply personally.
Step 4: Get an offer. The offered amount can range from $250-$50,000. The APR can range from 7.99%-18%.
Step 5: If you are satisfied with the offer, accept that one and receive the loan amount.
Taking a Personal Loan from USAA
As a veteran, you can easily take a personal loan from USAA Bank. This organization also do not have any specific credit score requirements. You can secure a personal loan from USAA with bad credit.
Their positive point is the loan amount: USAA provides a maximum of $125,000 as a personal loan. But, with a bad credit score, you can get a maximum of only $20,000. You can expect that the offered APR will range between 9.74% and 18.51%.
Below is the stepwise process to apply for this loan.
Step 01: Become a USAA member at first before applying.
Step 02: Gather your financial documents like credit reports, bank statements, investment information, etc.
Step 03: Visit the official website of USAA.
Step 04: Set up your loan by inserting the required amount and payoff duration.
Step 05: Now, submit an official application by clicking the “Apply Now” button. With the application, enclose all of the required documents.
Step 06: Upon receiving the offer, carefully examine whether you can pay the monthly amount or not. If you fail to pay the monthly amount on time, it will hurt your credit score badly.
Step 07: Finally, accept the offer and receive the allocated amount.
Taking a Personal Loan from PenFed
Well, with a bad credit score, you won’t be able to get a personal loan from PenFed. But you can get one easily by adding a co-signer to the loan application.
In this case, the co-signer’s credit score must be over 620. The reason we add this option here is its amount and low APR. You can get a personal loan of $500-$50,000. The APR will range from the lowest 7.74% to the high 17.99%. This APR is even lower than NFCU.
Below is the application process.
Step 01: Go to the official website of PenFed. Fill out the pre-approval application form and use the co-signer details as well.
Step 02: Upon getting pre-approval, apply for the loan online or by visiting the nearest branch. Do not forget to add the co-signer to the application.
Step 03: They will do a final evaluation and come up with an offer.
Step 04: If you find the offer suitable for you, accept that one.
Taking a Personal Loan from Other Banks or Financial Institutions
Even if you are a veteran with a low credit score, you can get a personal loan from conventional lenders like banks or other financial institutions. We suggest you apply the below-listed approaches to cover up the bad credit issue.
Add a Co-signer
You add a co-signer to apply for a personal loan to conventional lenders. You have to ensure that the co-signer has a good credit score, a solid and verifiable income source, a good credit history, etc.
Add a Co-borrower
Unlike a co-signer, a co-borrower not only shares the responsibility of paying the borrowed amount but also gets an equal share of the loan amount. If you can add a co-borrower with a good credit score, credit history, and income, you can get a personal loan easily.
Take a Secured Personal Loan
If you do not like the involvement of any co-signer or co-borrower, we suggest you take a secured loan from a bank or credit union. In this case, you must provide collateral to the respective entity to secure a large loan. You can use your home, land, share investments, car, etc. as collateral. Furthermore, know the requirements for a personal loan.
Hence, can veterans get personal loans with bad credit score? We hope that now you have a clear answer. Anyway, try your best to get a loan from the Navy Federal. Their requirements are easy, and there are benefits like a discount of 0.25% on APR.
However, if you must take a secured personal loan from a conventional lender, you must request a small amount and provide your car or less important valuables as collateral.