The Often-Missed Benefit

Personal loans are frequently overlooked when service members file SCRA claims. Most people remember their car loans and credit cards but forget about that personal loan they took out before joining. Every qualifying debt deserves the 6% rate.

Personal loans (also called signature loans or unsecured loans) from banks, credit unions, and online lenders all qualify for SCRA benefits if they were originated before your active duty start date.

Types of Personal Loans Covered

Bank Personal Loans

Traditional bank installment loans

Online Lender Loans

LendingClub, SoFi, Prosper, etc.

Debt Consolidation

Loans used to consolidate other debts

Example Savings Calculation

$10,000 personal loan at 12% APR, 36-month term

Original Rate
12.0% APR
SCRA Rate
6.0% APR
Monthly Savings
$26
Annual Savings
$312

Online Lenders

Many service members have loans from online lenders who are less familiar with SCRA. They're still required to comply. Be prepared to explain SCRA and provide the law citation (50 U.S.C. 3937) if needed.

LendingClub SoFi Prosper Avant Upstart Best Egg LightStream Marcus

How to File Your Claim

  1. Find your loan servicer

    Check your loan statement or online account. For online loans, check the app or website where you make payments.

  2. Contact customer service

    Call or email and ask for SCRA benefits. Online lenders may not have a dedicated military team - explain you're requesting SCRA rate reduction.

  3. Submit written request

    Send a formal letter citing SCRA (50 U.S.C. 3937) with your military orders showing active duty start date.

  4. Follow up persistently

    Online lenders may take longer or require escalation. Document all communications and follow up every 7-10 days.

Debt Consolidation Timing

If you took out a personal loan after entering active duty to consolidate other debts, the consolidation loan doesn't qualify for SCRA - even if the underlying debts would have qualified. Only debts that existed before your service date are covered.

Common Questions

What about lines of credit? Personal lines of credit opened before service qualify for SCRA. The rate reduction applies to any balance drawn before or during service.

My lender says they don't do SCRA? They're legally required to. Cite 50 U.S.C. 3937 and request escalation to their compliance department. If they still refuse, contact your base legal assistance office.

Does "personal loan" include payday loans? Yes, payday and installment loans from pre-service qualify. However, many payday lenders have high turnover and poor record-keeping. Document everything carefully.

Don't Leave Money on the Table

We'll find every personal loan on your credit report and ensure each one gets the 6% rate.

Calculate My Savings