Loans for Veterans With Bad Credit: Personal, Guaranteed, & More

If you’re currently in the military or previously served and have bad or no credit, there are a number of lenders that will work with you. Several lending companies and credit unions offer loans for a variety of purposes that are specifically geared toward veterans and military members. Below, we have more information about the lenders that offer loans to veterans and military members with less-than-perfect credit.

Before You Apply for a Military Loan

Before you apply for a loan — a military loan or otherwise — there are a number of things to keep in mind, especially if you have bad credit.

• Credit checks: When you apply for a loan, the lender will likely run a “hard” credit check, which can negatively impact your credit score. Because of this, it’s important that you don’t apply for more loans than absolutely necessary.
• Proof of your military affiliation: When you apply for a military loan, most lenders will require proof of your military affiliation. If you’re active duty, this can be accomplished through a Leave and Earnings Statement. If you’re an active-duty veteran or a Guard or Reserves veteran, you’ll likely need to provide your discharge document. This document will also let the lender know what kind of discharge you received — honorable, medical, dishonorable, etc.
• Fees: Keep in mind, different loans have various fees associated with them.
  • If you’re applying for a Veteran Affairs mortgage — commonly called a VA home loan — you’ll have to pay a Veteran Affairs funding fee. (This fee is waived if you received a 10% disability rating when you separated from the military.)
  • Most loans come with an annual percentage rate (APR) and applicable late fees if you fail to pay on time. If you continue to make late payments, your creditor may raise your APR.
  • Finally, some loans require you to pay an origination fee, which a lender will charge you for simply opening an account. Because these fees can add up, it’s important to check with your lender to find out what, if any, fees are associated with your loan before you open an account.

Lenders for Military Members and Veterans With Bad or No Credit

Whether you’re looking to build or rebuild your credit, buy a house, pay for a car, or start a family, there are a number of lending options available for military members and veterans with poor credit. We’ve listed these lenders below, ordered starting with the best overall options.

Omni Financial

• Types of loans available: Personal
• Payment plans: Repayment terms range from six to 36 months
• Possible fees: Subject to APR
• Eligibility: You need to be either full-time active duty or career-retired to qualify
• Credit check required? Omni Financial will perform a credit check; a new end of the month Leave and Earnings Statement is also required for new applicants.
• Find out more or apply

VA Home Loan Centers

• Types of loans available: Home
• Payment plans: Typically, 15- and 30-year plans; subject to the type of loan and amount financed
• Possible fees: VA funding fee, subject to APR
• Eligibility: Open to anyone who has honorably served on active duty for at least 181 days; Guard and Reserves must have served at least six years
• Credit check required? A credit check is required for a VA home loan; a minimum credit score of 620 is preferred but lower credit scores are accepted on a case-by-case basis
• Find out more or apply

Military-Loans.com

• Types of loans available: Personal loan and secured credit card
• Payment plans: Flexible payment terms
• Possible fees: Subject to APR
• Eligibility: Open to anyone who has honorably served in the military
• Credit check required? May be performed to determine eligibility; proof of military affiliation is also required.
• Find out more or apply

Navy Federal Credit Union

• Types of loans available: Secured credit card
• Payment plans: Balance must be paid every month
• Possible fees: Subject to APR
• Eligibility: Open to anyone that’s served in the military
• Credit check required? Navy Federal will check your credit when you apply for a secured credit card. However, this card is specifically designed to help you build or rebuild your credit, so a low score won’t disqualify you.
• First, open up a Navy Federal savings account with a minimum deposit of $500; then, apply online.

Kabbage

• Types of loans available: Small business
• Payment plans: Payment plans are dependent on the type of loan
• Possible fees: Subject to APR; additional fees may apply
• Eligibility: Open to anyone who has honorably served in the military
• Credit check required? Kabbage requires a credit check, $50,000 in annual revenue, and at least one year in business; other requirements may apply
• Find out more or apply

In Summary

If you are on active duty or a veteran with bad or no credit, the lenders listed above are willing to work with you on a home, personal, business, or another type of loan. The lender will need to run a credit check and you will most likely be required to provide proof of military affiliation and/or discharge documents. You can apply for most of these types of loans online.

In addition to financing options, you may also want to check out our list of stores that offer the best military discounts.