The military family is pretty much the same as any other when it comes to dealing with the financial pressures so common in life. Getting a cash injection is often the only answer when debts are building up and managing them is becoming more complicated. Luckily, for military members - be they in the armed forces, Coast Guard or National Guard - a ,000 military personal loan is not difficult to secure.
Personal loans are general loans that can be used at the discretion of the borrowers, but typically they are used to clear debts, pay outstanding bills and even make important home repairs. But why is it possible to get loan approval with bad credit on a sum as large as ,000?
The simple answer is that military borrowers are in a stronger position than their civilians counterparts, even when bad credit scores are involved. Getting a military loan is more straightforward and more assured if the criteria and conditions are met.
Benefits of Military Financing
Getting an affordable loan deal is the principal desire of any lender, but military personnel are in a position to secure very affordable loans. The fact is that, with low interest rates and likely approval, it would be difficult for them to find a better deal than a ,000 military personal loan.
Members of the military are in an extremely strong position when seeking financing. For a start, they are employed by the US government, and enjoy a high level of job security. So, lenders have no fear over the applicant being made redundant or the employer going bankrupt. And with such assurance over loan repayments, granting approval with bad credit is logical.
Another perk is that military loans can be approved in lightning speed. And just 24 hours after approval is given, the loan funds are deposited directly into the bank account of the borrower. What is more, repayments are deducted directly from the paycheck, guaranteeing repayments for lenders and making defaults impossible.
Why Bad Credit Is Not An Issue
Bad credit scores usually have an effect on the terms of a loan deal, with higher interest rates quite normal. But when it comes to ,000 military personal loan, there is no reason for the lender to increase the interest rate being charged. The reason? There is practically no risk involved in the deal.
There is no risk because as far as lenders are concerned, job security and ability to pay are both at a maximum, leaving no doubt that they will get their money back and make a tidy profit. And since these issues are far more significant to lenders than bad credit scores, the scores themselves can be ignored, making approval with bad credit a formality.
What is more, the interest rate that is charged on military loans is low enough to make sure even the repayments on a ,000 loan is easily affordable.
Main Criteria To Meet
Not just anyone can apply for a ,000 military personal loan, and lenders offering this kind of deal require proof that the applicant is a member of the military and home defense services. This is actually quite simple to prove anyway, with an official military ID confirming rank and station sufficient to satisfy that specific criterion.
Of course, getting loan approval with bad credit comes down to other factors, but as already mentioned, proof of full-time employment and a reliable source of income are already evident. Also, being over 18 and a US citizen are no brainers when membership of the military is confirmed.
Because deployment overseas is a real possibility for military applicants, a permanent address as well as the deployment address is usually required too before the military loan can be granted.