Traditionally, loans for active military personnel used to be difficult to apply for with stringent measures in place to help staff avoid getting into debt whilst on duty.
The reality is that just because you’re involved with the military, you won’t be shielded from life’s unforeseen financial emergencies.
Whether you’re currently serving in the American armed forces, are a veteran, or are even the partner of someone on active duty, there are countless reasons why you may need short term funding to help you through a cash crisis.
Today, things are very different. There are now hundreds of specialist military loans available, many of which can be applied for online in minutes.
Read on to learn more about the most popular loans for military personnel and how you can apply today.
How Do Military Loans Work?
You guessed it – military loans are specifically designed for those employed or associated with the American armed forces. They cover the length and breadth of the defense spectrum including, but not limited to:
- Air Force
- Coast Guard
- Defense-related employment
Loans for military staff share many commonalities with traditional loans in that you’ll be able to choose a lump sum you’d like to borrow and the term over which you’d like to repay it. This could be in a few weeks on your next payday or over the longer term to reduce repayments.
Either way, military loans are subject to their own unique laws thanks to the Military Lending Act which caps interest rates and protects personnel from high interest debt. There are also laws in place to defend against excessive fees and charges, helping our servicemen to borrow safely and responsibly.
What Loans For Military Staff Are Available?
As part of the military protections in place for short term lending, you won’t be able to set up a traditional payday loan. Instead, instalment loans for military are the most common loan type used to cover short term borrowing.
Instalment loans work by offering credit over longer repayment periods which tend to come with lower interest rates and lower monthly repayments attached when compared to payday loans.
You’ll have the freedom to choose a comfortable repayment period that fits in with your monthly budget. The amount you’ll be able to borrow will depend on your income and creditworthiness, although some lenders are able to offer instalment loans for military of up to $5,000.
What Can Military Loans Be Used For?
There are a myriad of reasons why you may need to take on short term credit whilst serving in the American military. Some of the most common applications for these loans include:
- Home repairs
- Vacation spending
- Emergency medical bills
- Vehicle repairs
- Special occasions
- Household spending
Don’t see the reason for your loan here? The good news is that once you’ve been approved for your loan you’ll be free to spend the funds any way you choose.
Am I Eligible For Military Loans?
Each military lender uses their own in house eligibility requirements, in line with state and federal law, to determine whether you’ll be accepted for a loan.
Some of the most important factors used when building up a picture of your eligibility can include:
- Your role in the military
- How much service you have remaining
- Your income
- Your credit history
You’ll also need to make sure that you’ve got a checking account set up to receive your funds as well as being able to provide documents verifying your identity and military status.
My Credit Score Isn’t Great. Can I Still Apply For Military Loans?
Yes! Just because you’ve had issues with credit in the past doesn’t mean that you can’t successfully apply for military loans today.
Specialist military lenders understand the unique financial and residential circumstances faced by those in the armed forces, helping them to say yes where other lenders have been unable to offer credit.
How Can I Apply For Military Loans?
Those in the military need to take extra care when applying for loans due to the restrictions and limits in place that we’ve already covered. Not only are rejected applications time consuming, being declined for credit can leave a negative imprint on your credit history.
The first step is to get a personalised comparison online so you can start to discover lenders best suited to short term loans for military. You’ll be able to quickly and easily compare eligibility requirements, interest rates and loan amounts from some of the country’s most reputable military lenders, helping you to find a rate that meets your needs and budget.
It’s then down to you to complete the final steps of the application with your chosen lender by letting them know more about you, your income and the loan you need. If accepted, funds can often be transferred straight into your checking account within 24 hours.