For those who serve in the armed forces, there are benefits to be enjoyed when it comes to seeking a loan. One great advantage is the availability of military loans with no credit check carried out. Of course, this is not exclusive to military personnel but civilian no credit check loans tend to be less accessible.
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Since military personnel are as susceptible to financial difficulties as the rest of us, the need to secure loans despite having bad credit ratings is very real. But through a range of loan options, they can look forward to fast loan approval on lower-interest financing.
However, as with all loan applicants, there are criteria and conditions to meet if they are to qualify for loan approval in the first place, and opting for the right military loan product is important too.
Why Lenders Favor Military Applicants
There is no point is ignoring the fact that military personnel are at an advantage when it comes to applying for loans. The reason is simply down to the fact that their employment security is much higher. This alone might seem enough to entitle them to military loans with no credit check.
But why is this? Well, the fact is that, as an employee of the US government, the chance of losing their job is practically nil, while the likelihood their employer will ever go bankrupt is just as low. This level of certainty ensures that fast loan approval is only to be expected.
But there are other advantages too. For example, when military loans are secured, the monthly repayments are deducted from a paycheck and diverted to the lender. It means even late repayments are impossibilities.
Qualifying For No Credit Check Loans
The criteria required to qualify for a military loan with no credit check are by no means surprising. It is normal to have to prove your age and your citizenship, not to mention the fact that a reliable source of income exists. But there are some extra details required for military personnel.
The number one factor required to entitle an applicant to a military loan, is that they are a member of the military, so lenders need proof that this is the case. The lender will ask for three specific pieces of information, starting with your military ID. This will confirm military membership.
However, proof of residence is also needed, especially when the applicant is not living on a military base – this is covered by the inclusion of a recent utility bill. And the third piece of information is that the applicant has a working bank account. All of these details can be included on the application form, and once received can ensure fast loan approval.
Loan Details To Look Out For
Members of the military do receive special rates when they apply for loans, so the idea of receiving a military loan with no credit check cannot be surprising. However, depending on the lender that is applied to, the interest rates can vary dramatically.
A loan offered without the security of a credit check is going to be more expensive, since the lender is accepting all of the risk. But the increase is less when a registered military lender is approached. Independent lenders will take advantage by charging a little more – though it is still much lower than the 30% rate sometimes charged to civilians.
Fast loan approval usually means just a few hours, but repayment is respected extremely quickly too. As such, the loan sum is usually limited to no more than $5,000, repaid over 90 days. A $1,500 loan may be repaid over 30 days. These military loan restrictions need to be taken into account.