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USAA Career Starter Loan Review: Low Interest Loan for New Military Officers

Review Updated
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A USAA Career Starter Loan may be ideal for you if you're on track to be a commissioned officer in the U.S. military or have been commissioned in the past 12 months and have little to no credit history. Keep reading to learn what a USAA Career Starter Loan is, who qualifies, and the unique details that set it apart.

Ratings Methodology

USAA Career Starter Loan

Great for: Newly commissioned or soon-to-be officers who want a low-interest loan

Logo for USAA Career Starter Loan
Rating image, 3.5 out of 5 stars.
3.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Minimum Credit Score
Not available
Loan Amounts
$25,000 - $36,000
APR Range
0.75% - 2.99%
Term Length
12 - 60 months

The USAA Career Starter Loan is a low-interest loan for cadets, midshipmen, and newly commissioned officers to get their military careers started.

  • Low-interest loan for those with little to no credit
  • Flexible payment terms
  • No collateral required
  • No prepayment or origination fees
  • Only cadets, midshipmen, officer candidates, and newly commissioned military officers qualify
  • Limited time to qualify for the loan
  • Must have a USAA bank account setup with direct deposit

Compare the best personal loans

Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.

Lender APR Range Loan Amount Min. Credit Score Next Steps
Fixed: 8.99%-29.99% APR (with all discounts)
$5,000 - $100,000
680
7.99% - 24.99%
$2,500 - $40,000
660
7.80% - 35.99%
$1,000 - $50,000
300

Full USAA Career Starter Loan review

USAA has created an extraordinary loan product for newly commissioned and soon-to-be officers. With lower interest rates and better terms than applicants are likely to find anywhere else, the loan is designed to get military members off to their best possible start.

Opinions from across the web

To learn what military members think of the USAA Career Starter Loan, we turned to the subreddit r/MilitaryFinance.

What social media says

The consensus is that borrowing the money is a good idea, even if the loan applicant doesn't have a specific purpose in mind. For example, several posters mentioned investing the money in something safe, like a high-yield savings account or guaranteed government bond. Others said that expenses -- like buying a car -- will arise.

What we love about USAA Career Starter Loan

There are few financial products on the market as attractive as the USAA Career Starter Loan. Here are four things we especially appreciate about the loan.

Low-interest loan for those with little to no credit

If you're just starting out in life, chances are, you don't have a long credit history. USAA is willing to overlook that.

Flexible payment terms

What you want to avoid as you begin your career is a payment you can't afford. USAA's flexible terms allow you to design a payment that works for you.

No collateral required

The low interest rates offered by USAA are typical of rates associated with secured loans. We like that you don't have to risk collateral to land a low-interest loan.

No origination or prepayment fees

Origination and prepayment fees eat into your loan proceeds and end up costing you more. The fact that USAA doesn't add them to its USAA Career Starter Loan is a nice touch.

What USAA Career Starter Loan could improve

Because no loan is perfect for everyone, changing these three factors would make the loan darn near perfect.

Only cadets, midshipmen, officer candidates, and newly commissioned military officers qualify

Military life can be challenging for anyone, particularly financially. It would be nice if a loan like this were available to all active military members.

Must have a USAA bank account setup with direct deposit

While this is not an insurmountable problem, it can be a hassle to change from one bank to another.

Cannot be used for educational expenses

If you're entering the military with student loan debt, the ability to refinance it with a lower-interest loan would be helpful.

How to qualify for a USAA Career Starter Loan

Minimum qualification requirements include:

  • DTI ratio of 45% to 50%, depending on your state
  • No bankruptcies or adverse public records within the past year
  • No delinquent accounts on your credit report
  • No more than six credit inquiries on your credit report in the last six months.

Application process

Applying for a USAA Career Starter Loan involves four straightforward steps.

  1. Become a USAA member
  2. Open a checking account
  3. Set up direct deposit and show at least one direct deposit within 30 days before applying
  4. Apply by calling 800-531-4610

Is a USAA Career Starter Loan right for you?

Only you can say whether or not a USAA Career Starter Loan is a good fit for you. If you need a personal loan of $25,000 - $36,000, it would be next to impossible to find a loan with more attractive terms. Still, you have a lot going on right now and need to be sure that taking on a new loan is in your best interest.

A USAA Career Starter Loan is right for you if:

  • You're a cadet, midshipman, or newly commissioned officer
  • You're looking for a low-interest loan to help you get started
  • You're a USAA member with an open checking account
  • You've set up a direct deposit and show at least one direct deposit within the 30 days prior to applying

FAQs

  • A USAA Career Starter Loan is for cadets and midshipmen at the five Service Academies, ROTC programs, or an officer candidate at OCS/OTS. Military officers within 12 months of their commission date are also eligible for the loan.

  • Navy Federal has a Career Kickoff Loan that offers a rate of 2.99% and loan amounts up to $25,000 for Service Academy, ROTC and OCS/OTS Officers and Candidates.

  • The USAA Career Starter Loan is guaranteed for Service Academy members and graduates. ROTC and OCS/OTS members and graduates must go through a credit check. The minimum credit score is not published and you must apply to see if you qualify.