Everyone has suffered as a result of the poor economy in recent years, even those of us with a very safe employment status, like military personnel. Thankfully, even if they too have developed bad credit scores, the existence of military loans with no credit check gives them a clear route to vital funds when needed.
Lenders have a very different attitude to loan applicants when they are military personnel, but it not an unfair arrangement. Since military members are employed by the government, their source of income is safe. So, granting them fast loan approval, even with low credit scores, is not such a major risk.
Still, there is criteria that applicants have to satisfy to qualify for a military loan. While these are pretty straightforward, it is always important that applicants examine certain aspects of a loan application before submitting one.
Why No Credit Checks Are Possible
It might seem that lenders ignoring the credit history of an applicant is a foolish move, but in fact it makes good sense. Traditionally, the score was used to assess the trustworthiness of the borrower, and whether he or she is likely to default on the loan. But credit scores are actually a minor influence in the whole application process, making military loans with no credit checks viable.
But there are other reasons too. As government employees, their employment status is extremely safe. Their employer is not about to go bankrupt so monthly salaries are guaranteed. Also, the government is not likely to shed employees either, so they are not likely to become redundant.
With these facts in mind, providing a fast loan approval process makes good sense, especially when the repayment terms see the required sum deducted from the paycheck, and going directly to the lender. Defaulting on these military loans effectively becomes impossible.
Terms To Expect
There can be no great surprise that the terms that come with getting military loans with no credit checks are pretty good. For a start, the degree of perceived security relating to the loan means the interest rate is low. The basic criteria is straightforward too, with proof of citizenship, age, and an active bank account essential.
The size of the loan attainable with no credit check is very different with these loans. While the civilian equivalent is limited to just a few thousands dollars, military personnel can access as much as $25,000. And with the benefits of fast loan approval, this can translate to fast access to funds that can greatly alleviate existing debt.
Also, a military loan is a more affordable option since the repayment term can be as long as 10 years. Thus, the size of the monthly repayments can be kept low, ensuring the borrower meets repayments with ease.
Online Military Lending Options
As with so many financial packages, the best deals are to be found on the Internet. This is where online lenders offer lower interest rates and more flexible repayment schedules, whether to civilians or military members. So, getting an affordable military loan with no credit check is no problem.
However, before setting off to find the best deals available, be sure to calculate your own budget in advance, so as not to agree to something that is a little too expensive. Also, read the small print of any loan agreement. The promise of fast loan approval is fine, but not if hidden charges make the deal a bad one.
Of course, it is always a good idea to get a military loan from a recognized military lender, one that has a proven record in dealing with military applicants. Even if it costs a little more, the security in knowing the lender is answerable is a major plus.