When you take out funds through a military loan, it really isn’t any different than if you took out a personal loan that didn’t require military credentials. However, there are benefits to taking out a military loan. To begin, military loans are often available with no credit check, and there are many that will still provide funding despite your having poor or no credit history.
This is the biggest advantage to military loans, as a matter of fact. There are many people out there who require financial assistance through a loan for a variety of reasons, whether it is to purchase a home, a car or a college degree. Unfortunately, many active duty military personnel face challenges in attempting to preserve good credit while they are overseas, especially as they focus on tasks that hold much more importance than a simple bill.
Military loan requirements make it easier for active and retired military personnel to receive credit when they need it.
- To qualify for a military loan, you generally need:
- To have been a part of the military for a full term, or are active duty.
- Be retired military personnel who has no dishonorable discharge
There are many banking institutions who allow credit forgiveness for military personnel who may have experienced a drop in their credit score during the course of their service. However, not all banks are this kind. To receive these military benefits it is necessary to partner with a military lender. Military lenders are able to use your personal history and military service as an override to poor credit qualifications. This may include forgiving a missed payment while you were on active duty, for example.
Individuals who have an exceptionally poor credit history may still face hardship in securing some financial assistance, especially those who have experienced multiple defaults or bankruptcy. However, there are military loan programs that offer approval with no credit check and no minimum requirements. Often, qualifying for these programs means agreeing to pay a higher interest rate on the loan, but results in the ability to make the purchases you are looking for.
