It is generally believed the most important element of a loan application is the credit score. Actually, it only has a minor impact on the application process, with other elements far more significant. Thankfully, members of the military do not need to worry about. Why? Because there is little difficulty in getting military loans with bad credit anyway.
It all comes down to the employment status that military applicants enjoy. Even veterans who have served their time have earned pensions that ensure a regular income. This level of dependability makes the task of getting loan approval with no security all the easier.
Still, even members of the armed forces can run up poor credit scores, making access to even modest loan sums so important. And with military loans on offer, complete with better-than market terms, the route to financial security is clear.
Qualifying For These Loans
Accessing funds even with low credit scores is something that everyone would love to be assured of, but getting military loans with bad credit is something that is exclusive to a specific niche market. To qualify for one, applicants have to be in one of two categories, and meet the basic loan criteria that most traditional lenders ask of their civilian customers.
The categories of applicant are those with no credit history, and retirees or military veterans. The former group generally refers to military members who joined up straight from high school. With everything they need provided by the military, there was never need for a loan or credit card, and therefore no credit history was built up. These applicants would find it difficult to get loan approval with no security in normal circumstances.
Military retirees, on the other hand, have earned their financial stripes, at least in recent years. Their credit rating is likely to have been hit hard, necessitating military loans to handle the pressure.
Terms to Expect
It is only logical the applicants with such a reliable source of income should get a few breaks from lenders. Certainly, despite applying for military loans with bad credit, they tend to get very good terms. However, that is not to say that the terms are perfect.
Also, the loan term is important to know. The surest road to getting approval with no security is to look at the small print of the loan agreement, and understand the specifics of the repayment schedules, interest rates and other charges. Then it becomes easier to select the loan package that suits your situation best.
For those who meet with some difficulties when repaying the military loan, there is a deferment facility provided. This means that repayments can be halted for a limited time (perhaps three months) and then continued.
Where to Get a Loan
Traditional banks are not the ideal option when military folk are seeking a loan. But then, why bother approaching them when the interest banks charge is so much higher than that charged by online lenders. Securing military loans with bad credit is much easier when a recognized military lender, or an online lender, is approached.
Military lenders are often the best choice since their loan products are tailored specifically for that niche market. As such, the interest is highly competitive and the repayment schedule is very manageable. And with the certainty of an income from the US government, getting approval with no security is not difficult at all.
Finally, be sure to check out the reputation of any online lender with the BBB website, and make sure to settle for nothing less that A-Grade lenders before applying for the military loan they offer.