It is not easy to find a lender willing to simply hand out loans to anyone who applies. There is criteria that needs to be met, and conditions that must be accepted by the applicant. But the good news for service men and women is that military loans for those with bad credit are amongst the least difficult to see approved.
There are a number of reasons why military loans with bad credit are more accessible than the equivalent loans for civilian borrowers, not least the fact that the level of job security is extremely high. In essence, this translates to a guarantee of income with which to repay any loan.
The range of loan types available is just as wide with civilian options, but because of the greater level of security, from the perspective to the lender, it is much easier to get military loans approved despite poor credit. With this, it is therefore easier to begin to build a better credit rating too.
Type of Loans
Basically, the only real difference between civilian and military loans for those with bad credit is the perceived level of certainty with repayments. This filters through the range of loans available, with secured and unsecured loans both to choose from, in either short or long terms.
Secured loans relate to those military loans with poor credit that are accompanied by an item of value to use as collateral. This means that, should the borrower default on the loan that the losses are covered by the value of the item of security. In an auto loan, for example, the collateral is the car itself.
Unsecured loans have no collateral, thereby leaving the lender at greater risk. But getting unsecured military loans approved, despite bad credit, is easier because of the level of certainty surrounding the employer – namely the Government. With employment secure, and income received like clockwork, it is difficult not to receive monthly payments on time.
The biggest advantage in seeking military loans for those with poor credit is when emergency funds are required. For example, while civilians may have to go to great lengths to convince a lender that repayment of even a payday loan is assured, military personnel have much less hassle.
This is because the certainty of payment makes the risk minute, so even a military loan with bad credit taken out against the next pay check in just a week or two, can be secured. So, if small loan sums like $1,000 is needed very quickly, then it is not hard to access.
Larger Personal Loans
When it comes to getting large military loans approved despite bad credit, there is just as little trouble, though the applicant may have to wait for approval for at least 24 hours. This is, of course, quite quick and as a source of funds for debt consolidation, for example, is ideal.
In the case where a civilian is looking for a large personal loan, there can be complications because of the rate of interest and size of the resulting monthly repayment. However, large military loans for those with bad credit are easier to get, so long as the monthly repayment is manageable.
Military loans with bad credit are subject to the same condition on repayment as any other, with lenders only lending on the back of 30% of the income of an applicant. This means that any military loans approved despite bad credit needs to be within that percentage, so the sum applied for must be within reason.
The availability of military loans for those with bad credit ensures that military personnel have access to necessary funds when most needed, and with the minimum of fuss.