Adam McCann, Financial Writer
@adam_mcan
USAA offers two options for debt consolidation: personal loans and credit cards. Credit cards are better for short-term consolidation of small balances. Personal loans often allow you to borrow more money for longer periods of time.
USAA doesn’t offer personal loans specifically for debt consolidation. But their regular personal loans can be used for any expense, including paying off multiple debts in order to consolidate them into one balance.
USAA Debt Consolidation Options
- Personal loan: Borrow $2,500 - $50,000 for 12 - 84 months. APRs range from 6.99% to 17.65%. People of all credit levels are considered, but only people with excellent credit will qualify for the lowest rates. USAA personal loans don’t have an origination fee.
- Credit card: USAA offers a variety of credit cards, including ones that are co-branded with military associations. You can transfer existing debts to these cards through a balance transfer. The best cards to transfer balances to are ones that have 0% introductory APRs.
USAA does not let you pre-qualify for their personal loans. But you can use the calculator they offer on their website to estimate your potential rates and see if they’re better than the rates you are paying on your existing debts. USAA also offers a tool to help you pick the right credit card.
Though USAA does not disclose a minimum credit score requirement for its personal loans, its website lists rate estimates for all credit ranges, even below fair credit. So people with bad credit may have a shot at approval. You can see the credit score requirements for USAA credit cards on their WalletHub details pages.
To get a loan or credit card from USAA, you also need to be at least 18 years old and have an SSN. In addition, you must qualify for overall USAA membership. It’s open to people who have served in the military and their immediate family, as well as family of existing USAA members.
People also ask
Is debt consolidation a good idea?
Debt consolidation is a good idea for borrowers with high-interest debts owed to multiple lenders. Whether or not debt consolidation is wise depends largely on if you can get a new loan or credit card that will save you money compared to the current cost of your debts. The simplicity of a single payment can be helpful, too.
How Much You Can Save With Debt Consolidation
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What is a debt consolidation loan?
A debt consolidation loan is a personal loan used to pay off more than one existing debt at the same time. The borrower receives a lump sum of money from the lender and uses that money to pay off their other debts. Those debts thus “consolidate” into one balance owed to the one new lender, with one monthly payment for the borrower. Ideally, the interest rate on the new loan will also be lower than...
read full answer by Adam McCann, Financial WriterHow can I get a debt consolidation loan?
To get a debt consolidation loan, you must be at least 18 years old and have a steady income as well as a credit score of at least 580. Not all debt consolidation loans will require a 580+ credit score, but it’s unlikely you’ll get rates that are worthwhile for consolidation with a lower score. People who meet the general requirements for a debt consolidation loan will find the process of getting approved to be...
read full answer by Adam McCann, Financial WriterDid we answer your question?
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