Military Loans With No Credit Checks: Factors to Consider
Military personnel are affected by economic crisis too. But the availability of military loans with no credit checks mean they have a smoother route to vital funds when necessary.
The funds may be necessary to make a late repayment on a mortgage, pay college fees and perhaps even pay medical expenses for a family member. It might even be used to clear some existing debts. But whatever the purpose of the loan, getting approval with bad credit is less of a worry.
There are several reasons why this is the case, with lenders chiefly recognizing the fact that military applicants are a special case compared to civilian applicants. But there are factors that should be taken heed of before applying for these military loans.
Why No Credit Check?
It may seem strange that any lender would be willing to grant approvals while not knowing the credit record of the borrower. There is a major risk that the borrower might take the money and run. But there are advantages to both sides in offering military loans with no credit checks.
Statistics have shown that bad credit borrowers are more interested in regaining their credit reputation rather than cynically taking advantage of any financing opportunities. But it is that bad credit scores are known to be an inaccurate indication of risk that make approval with bad credit viable. So, skipping the credit check makes little difference.
Also, the fact that military personnel are employed by the government means that job security is practically guaranteed. And because repayments can be drawn from source rather than the bank account of the borrower, there is little chance of a military loan being defaulted upon.
Terms to Expect
Members of the military are eligible for special loans designed to work within the specific demands of military life. There are more benefits to enjoy that simply getting a military loan with no credit checks. All that is needed is that applicants prove their identity and their military service and rank, along with a permanent US address and bank account details.
And while securing approval with bad credit is commonly achieved, it is also possible to get a significant interest rate reduction while on active duty. In fact, the rate can fall by up to 6% in some cases, obviously reducing the overall monthly repayments in the process. This benefit is available to borrowers of private and military loans.
There are also loan limits in place on these military loans, with applicants confined to a maximum sum of $25,000. Anything over that sum will require a credit check, though the limit is large enough to deal with most needs. What is more, the repayment term of between 7 and 10 years, means the monthly repayments can be kept low.
Finding the Best Deal Online
While visiting the finances officer on a military base is a good place to start, applicants generally turn to the Internet to find the best deals available. Not all traditional lenders offer military loans with no credit checks, but specialist online lenders do. Using comparison sites to identify the best deals, and where to get them, is fast and efficient.
Online lenders who provide loan approval with bad credit are known to charge lower interest rates and offer more flexible repayment schedules, but when it comes to lending to military personnel, they offer more. For example, it is possible to apply for a military loan while stationed abroad, something that civilians are not usually permitted.
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ABOUT THE AUTHOR
Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loans for 5000 and Bad Credit Student Loans Guaranteed. For more information about his services please visit him at http://www.accessmyloan.com