Money problems for military members, often rooted in a complex pay system for soldiers from mobilization through active duty deployment to demobilization, have generated a staggering amount of personal military debt.
As of September 30, 2005, nearly 1,300 separated Army soldiers had over $1.5 million in military debt - almost 900 battle-injured soldiers had debts totaling $1.2 million and about 400 soldiers who died in combat were left with total debts of $300,000.
While the DOD does not pursue debts of soldiers who were killed in combat, hundreds of battle-injured soldiers experienced collection action on their debts. Often, injured soldiers and their families face bad credit reports, calls from collection agents, and tax refund offsets against their debts.
MILITARY LOANS CAN HELP
If you are in the military, one financial advantage you have is accessibility to military loans. Most financial institutions and banks have created military loans specifically tailored for military financial needs.
Military loans offer a way to get temporary emergency funds quickly, as well as a way to pay for longer-term necessities like auto insurance and more.
As you may know, military loans offer low interest rate without any fee or penalty. To qualify, you must show military identification along with other required information. Military loans are approved instantly or within 24 hours, while military loan repayment terms range from 6 months to 10 years. If you are abroad in active service and your family at home needs some money urgently you can easily get a military loan, and in a relatively short time.
MILITARY LOANS WITH BAD CREDIT?
But can you still get a military loan even if you have bad credit?
In most cases, yes. Loan companies and banks have introduced bad credit military loans for military borrowers with poor credit, either due to a prior bad credit history of things like late payments, or a bad credit score resulting from simply not having established a long enough credit history.
One caveat about bad credit military loans, for instance, bad credit military auto loans, is that they often have a higher interest rate than standard military loans. Before applying for a military loan, do your own due diligence. Bad credit military lenders often have much stricter terms and conditions, as well as late payment fees, so shop for the best deal before committing to the loan.
Military loans are open to all who serve in the military, even if you have bad credit. If you are navy personnel, there is a loan for the Navy, Air force loans for the Air force etc. Whatever branch of the military you are attached to, a military loan can be available to you.
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