Military Loans With No Credit Checks: The Route Back To Financial Stability

Members of the military are as much the victims of the economic downturn as the rest of us, and many have suffered falling credit ratings in recent years. Even the job security that comes with being US government employees does not protect them from financial pressure. But the possibility of getting military loans with no credit checks is a route towards recovery.Loan applications face a range of criteria before a lender is willing to grant them approval. But the good news is that securing approval despite bad credit is not so much to do with bad credit scores, and more to do with income and proving the ability to repay the loan.But while the idea of granting loans to applications without first checking their credit history might seem strange, the system actually provides advantages to both lenders and borrowers. After all, securing a military loan fast becomes a necessity in the modern world.What Are No Credit Check Loans?The idea of not checking credit histories should leave a lender more vulnerable to the risk of lending to unscrupulous borrowers. But studies show that bad credit borrowers actively seek opportunities to improve their financial situation. With this in mind, offering military loans with no credit checks is simply giving consumers what they want.What makes this kind of loan possible is that credit scores really are not that important. The score only influences the interest rate charged on a loan, and nothing else. So, when a lender grants approval despite bad credit without looking at a credit history, there is less to worry about than many believe.But there are special aspects to lending to military members that make the decision viable too. The US government, as the employer, is not likely to issue redundancy notices, so the monthly paycheck is guaranteed. What is more, repayments for the military loan are taken as deductions from the paycheck of the borrower, so the borrower cannot default.Typical Loan TermsOf course, there are terms and conditions that an applicant has to accept before they can get a military loan with no credit check. For a start, the loan limit can be $25,000, though this depends on the lender and on the terms of the repayment scheme.It can be difficult for applicants with low credit scores to afford a large loan, but it is possible to agree an long-term loan that would see the principal repaid over 7 to 10 years. This makes approval despite bad credit more likely because the monthly repayments sum is kept to a minimum ($210 over 10 years), avoiding the financial pressure a short-term loan would create ($425 over 5 years).Of course, this kind of military loan comes at low rates of interest because of the degree of job security involved. The civilian loan equivalent has higher interest rates because the lender is accepting a higher risk.The Online Loan OptionFinding the best loan option usually involves spending time on the Internet, where the best deals are to be found. It is no different when seeking a military loan with no credit checks. Generally, online lenders charge as much as 1% lower interest than the traditional alternative, ensuring borrowers face lower repayment sums.However, recognized military lenders are the experts in lending to military personnel, and with the likelihood of enjoying approval despite bad credit so strong, their loan packages can prove to be the financial rescue package needed.Still, applicants need to qualify for a military loan, and providing proof of military rank is usually enough. Once qualified, approval can be secured in as little as 24 hours, and with the cash injection the journey back to financial stability can begin.