Loans granted with no credit checks are attractive to us all. A bad credit history is preferably forgotten when seeking good terms on a loan deal. Even military personnel, who enjoy very good loan terms due to their employment status, will agree that applying for a military loan with no credit checks is a less stressful experience.
Financial pressure is not exclusive to civilians, and military borrowers are just as susceptible to financial problems. Securing approval despite bad credit may not be a major problem for them, but specific elements of a loan deal can be affected. When their bad credit history is ignored, they can get better terms too.
The whole process is faster when there are no credit details to check out. So, when there is a financial emergency to deal with, the military loan can be given the green light in a matter of minutes, and the funds secured in hours. But, that is not to say lenders issue these loans without care. There is criteria to satisfy too.
What is No Credit Check?
For those not familiar with the term, lenders traditionally take the time to check the credit histories of applicants before deciding whether to approve loans or not. The purpose to is to identify those who are too great a risk to lend to. Surely then, even granting military loans with no credit checks are a foolish move.
Actually, it is less of a risk than many would expect, with bad credit borrowers generally seeking to improve their credit scores rather than worsen them. In any case, credit scores are not essential to an approval process, so removing the credit check has practically no impact. Income and affordability are key to getting approval despite bad credit.
Since the employer in this case is the US government, there are no doubts regarding the reliability of the income. And with repayments taken as deductions from the salary, there is no chance of defaulting on payments. So, a military loan is considered quite a safe investment by lenders.
Loan Criteria and Terms
There are some obvious loan criteria that applicants must meet to secure a military loan, with no credit checks making little difference. However, meeting them is made easy with the fact that applicants must be members of the military, and members in the military are over 18 and US citizens.
But there are compromises to accept too if applicants want to get approval despite bad credit. For a start, the loan limit is not very high, with most lenders willing to grant no more than $ 2,000. This is because the lender accepts the risk when they ignore credit histories. Also, interest rates are higher, and repayments terms are short.
However, the terms do depend on the lender. A larger military loan is possible to secure, though it also means a longer repayment term. A $ 10,000 loan may be repaid over 12 months, though a 24-month or 36-month approval may be available too.
The Best Loan Deal
Of course, military loans with no credit check are easily found over the Internet, with online lenders recognized experts in bad credit lending. However, often the best terms are actually available from recognized military lenders. These can be identified through the financial assistance office on base.
These lenders offer loans that are specifically tailored for military personnel, and for that reason the chances of approval despite bad credit are extremely high, and the terms are likely to be extremely affordable.
Once documented proof of rank and deployment history is provided, the military loan funds can be deposited to the account of the borrowers in a matter of hours.