A bad credit military loan may be for you. Being a member of the U.S. armed services and having bad credit, you may qualify for a unique form of loan called the bad credit military loan.
Engineered expressly to address the special needs of military folks, these are loans to help them with their financial situations. Who qualifies? (Veterans may be eligible, too.) What steps must you take once you know your eligibility?
No Credit History Benchmarks
Bad marks on the credit history are usually the reason for loan rejection for both the military and the civilian populations. Most banks and credit unions have set rather high credit benchmarks when it comes to examining potential borrowers.
Rejected during the usual process, military members have the option of applying for a bad credit military loan. Lenders offering these special loans understand the unique sacrifice military life involves. In light of that, these special loans are set up to allow taking a loan and usually charging significantly less in interest rates.
Using Military Money
Lenders, once your loan is secured, have little interest in how you use the money. They are often used for debt consolidation, home improvement or car repair, or even for high-ticket items such as appliances or furniture.
Your interest rates will still be higher than those with good credit history, but they will be far easier on your pocket book than regular bad credit loans. Make a budget and see how much you have left over after you have paid your usual obligations. Can you afford another monthly payment?
Check Your Credit
The process of getting a bad credit military loan is relatively easy if your line up your ducks first. The better prepared you are, the quicker the cash gets into your bank account. Your first step should be to get your credit reports. You are allowed one free from each of the credit bureaus every year. You will know exactly how a lender looks at you as far as financial risk.
Most importantly, make sure of their accuracy. Errors are not uncommon. You should start the repair process immediately if you discover inaccuracies. The process could take as little as 30 days or it could stretch into months if you have somehow become the victim of identity theft. Make it known that there are mistakes and that you are in the process of correcting them.
Although the application process is usually rather swift, it requires the completion of a simple form, you must have some documentation. You will need government-issued proof of identification, verification of your rank and salary, a bank account in good standing (usually checking with direct deposit) and proof of residency.
When you have gathered your documentation, and the review and verification of your credit reports have been completed, you need to shop around for a lender to fit your needs. Because there are so many lenders, you should be able to shop and find one who will lend you the amount you need, at a decent interest rate, and with repayment terms that are comfortable.
Use the internet to start your shopping. Simply punch Military Loans into your browser and you will be rewarded with many lenders who may be willing to lend money to you. You will even find brokers who will take your general financial situation and then come up with a list of lenders most likely to approve your loan.
As with any internet transaction, be sure the sites where you divulge financial or personal information are secure. Check that the lender is above-board. The Better Business Bureau online listings grade the businesses and also offer feedback from former customers. If things go well, and they probably will, you could have the money you need sitting in your bank account within 24 hours, sometimes sooner.