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USAA has services and products geared toward military members and close family.
USAA; Alyssa Powell/Insider
The bottom line: USAA auto loan is a great choice for military members and their families. It offers solid rates and quick approval decisions. However, the bank has restrictive membership eligibility requirements, meaning many borrowers won’t qualify.
Pros and cons of USAA auto loans
Pros
Fast approval decisions. USAA will give you your approval decision within a few minutes of applying for a loan. You’ll then have a good sense as to whether to continue to the loan process with the company or to move on. New, used, refinancing, and lease buyouts available. Whatever type of auto loan you need, you’ll be able to get it with USAA. Some other lenders don’t offer all four of these auto loan options. Discount for automatic payments. You’ll receive a 0.25% discount for enrolling in automatic payments, which will reduce the overall cost of your loan.
Cons
Membership required for a loan. USAA requires members to be a part of the military community or a family member of that group, so these auto loans aren’t accessible to all borrowers.Fees, some term details are undisclosed. The bank doesn’t list a minimum credit score it requires for its loans, its fees, or maximum loan amount. You have to reach out to USAA for details on refinancing and lease buyouts. Other lenders are more transparent about the terms you can expect with their loans. No prequalification. USAA doesn’t offer prequalification on its auto loans, so you won’t be able to check your rate without the lender performing a hard inquiry. A hard inquiry might temporarily reduce your credit score.
Who is USAA best for?
USAA is best for existing customers who want to take out a loan at a bank they have a relationship with. The bank’s customer service and reputation are top-notch, and it offers solid starting rates on its auto loans.
However, USAA is rather opaque about most of its loan terms. It doesn’t list the fees it charges on its website, the minimum credit score needed, or its maximum loan amount. Borrowers who want more clarity about what to expect before deciding to apply should look elsewhere.
How USAA auto loans compare
Navy Federal has a lower loan minimum than USAA — you can take out as little as $250 with the credit union. PNC has a loan minimum of $5,000, the same as USAA.
USAA’s offer is good for 45 days, while Navy Federal’s last for 90 days. PNC doesn’t disclose how long its offer is good for.
See our ratings methodology for auto loans »
Frequently asked questions
Is USAA trustworthy?
USAA has a top-notch A+ rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB determines a company’s ratings by evaluating if a company’s response to consumer complaints, transparency about business practices, and truthfulness in advertising.
USAA has been at the center of a controversy over the past few years. The Office of the Comptroller of Currency forced the bank to pay an $85 million fine in 2020 after the regulator determined the bank failed to properly manage risk in their compliance and information technology programs.
Even though USAA has a great BBB rating, that doesn’t guarantee you’ll have a good relationship with the bank. Reach out to friends and family and ask them about their experiences with the lender before deciding to borrow. You may also not feel comfortable with the lender given its recent scandal, so you might choose to look elsewhere.
How hard is it to get a USAA car loan?
Generally speaking, its harder to get a USAA car loan than one from most other lenders.
Some borrowers may not be able to get a USAA car loan, no matter how good their credit score. Membership is restricted to the military community or family members of that group. If you don’t meet those requirements, you won’t be able to get a loan from the bank.
Is USAA a good place to get a loan?
If you qualify for membership, USAA is a solid place to get a loan. It offers excellent customer service and a discount for making automatic payments. Additionally, you can get a new or used car, refinance, or buy out your lease with USAA.