Securing Military Loans With Bad Credit: Making The Effort Worthwhile

Traditional lenders may advertise their willingness to listen to their customers, but in reality they have strict lending policies that overrule the unique status that individual applicants might have. It is why credit reports have significance, and why getting even military loans with bad credit can be tricky.Of course, it would be a lie to state that any loan applicant who has a bad credit history is doomed to see his application fail. Decisions to approve or reject a loan do not rest solely on scores, so it is possible to get approval with poor credit history if the application is strong enough.When it comes to military loans, the criteria that applicants must meet are slightly different, and the terms available on the loan are usually much better than normal. This is because military members are a different category of applicant, and are given certain breaks by lenders.Qualifying For A Military LoanThe only real qualifying condition that is different to normal loans is that applicants for military loans with bad credit have to be a member of the military. As well as the US Army, Marines, Navy and Air Force, qualifying applicants can also be members of the reserve forces, the Coast Guard and the Home Guard.All lenders look for 3 key things in an application, with the applicant needing to be over 18, be a US citizen and have a reliable source of income. As a result of being in the military, all applicants satisfy these conditions automatically. Where things differ from civilian loans is the level of job security.Military members can get loan approval with poor credit history because government employees have a far greater level of job security than anyone else. Their employer is the US government, which means redundancy is never likely. Therefore, a means of repaying the military loan will always be there.Terms and Conditions To SeekSince these loans are available to applicants with a very high degree of job security, the terms offered to those seeking military loans with bad credit are usually quite good. The interest rates are lower than usual and the size of the loans is higher too. But approval is only granted on the back of affordability, and so some applicants are rejected.The conditions leading to approval are centered around affordability, and affordability is proved through the debt-to-income ratio. This ratio compares the total monthly expenditure with income, revealing the excess income available. However, it also stipulates only 40% of income be spent on loan repayment.Despite the status of military members, and the promise of loan approval with poor credit history, failing to adhere to the ratio is certain to result in application rejection. Getting a military loan is easier if the loan term is longer, thus lowering the size of the monthly repayments.  Where To Find A Military LoanThe best loan terms are from online lenders, and when it comes to military loans with bad credit, this is particularly true. Traditional lenders may offer comparatively good terms, but interest rates are still higher.However, it is a good idea to approach only lenders that are recognized by the military. This provides an extra level of protection against unscrupulous lenders, while also reducing the search for reputable lenders. Also, when seeking approval with poor credit history, be sure to check out the small print on the loan contract, to ascertain if there are any hidden chargesAlso, whether applying to a traditional or online lender, be sure to carefully calculate what is affordable before submitting your application for the military loan. That way the task of proving affordability is made easier.