No Credit Bad Credit Military Loans Available

Applying for a loan can be a frustrating and daunting task.  This is especially true if you are a member of the armed services and have a less then flawless credit history.  When you apply for most conventional loans, the first thing the lending institution will look at is your credit score.  Most financial institutes rely on credit information from the top three credit bureaus:  Equifax, Experian and TransUnion.  As a serviceman your credit rating may make you a poor credit risk by most conventional lending institutes, causing your application for a loan to be rejected. Banks and other financial services providers do not look special circumstances that military personnel are faced with.  They do not consider the frequent moves, long deployments and lower-then-average pay of most servicemen. Fortunately, there are several options available for military personnel with poor credit.

No Credit or Bad Credit Loans

Many people are not aware that having no

credit reflects as poorly on your credit record as bad credit does.  Young servicemen, who have spent their formative credit years in the service, may not have developed a credit rating at all.  They are unlikely to apply for car loans or mortgages while deployed with the military.  Unfortunately, when he or she applies for their first loan, under conventional lending rules, they will automatically be termed a bad credit risk. Servicemen with tarnished credit records are also termed bad credit risks.  In both of the cases above, the servicemen will have little choice but to apply for a bad credit loan.

Luckily there is special financial assistance for servicemen in this situation.  Several different loan products are available through various companies to assist servicemen with a poor credit rating.  Emergency cash loans, home and auto loans are available as bad credit military loans.

Unfortunately, bad credit military loans do carry higher interest rates and can involve more fees.  Make sure to carefully review all loan documentation prior to signing.  Pay special attention to interest rates, repayment schedules and additional fees. It is often worth the slightly higher payments because not only will you be allowed to make your purchase your will begin to repair your credit!  Successfully paying off a bad credit military loan will actually raise your ‘civilian’ credit score, making securing loans easier in the future.

Financial Institutions

When applying for a bad credit military loan, there are a few different options for you to consider.  The first is using your local bank branch.  Most banks will offer servicemen with poor credit loans.  These loans will be based solely on your credit score and you will likely be charged the highest interest rate allowable by law.  Likewise, many internet based loan companies will use the same criteria to judge your credit-worthiness.  Again, you might be approved for a loan, but you may not receive the best rates and terms.  While loans from banks and online finance companies will still be rebuilding your credit, you may want to consider using a company that specializes in military loans.  A company such as Pioneer Services, who only loans to servicemen, will take into consideration your unique situation.  In fact they, and many military specific companies like them, have developed a specialized formula for figuring out your rate.  The military APR takes into account the special circumstances faced by military personnel.  They are able to offering you loans at competitive rates and with less expensive fees.

 Whichever type of bad credit loan you decide on, make sure you understand and follow all the terms and repayment schedules.  By doing so, you will take the first step o the road to financial independence by beginning to repair your credit.

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