Benefits of Military Pension Loans

Military pension loans are a way to get more of your money when you need it to take care of your financial concerns. Normally, you sit and wait for a monthly pension payment, however instead of doing this; you can turn your pension into a substantial lump sum payment. This money can be used for absolutely anything such as paying off debt, getting a new care or home, starting a business, college for your children, or even something as simple as a vacation.

The great thing about military pensions is that you

do not have to repay this money because it is not a loan. Also, there is no need to sell the entire pension if you do not want to. You can receive money for your pension for a period of time that you select and can keep any increases in the payments that you receive. After the time period has passed, you will continue to receive the full retirement pay just as you did before you sold some of it.

There are some guidelines that you must meet in order to sell your military pension. Please keep in mind that a military pension advance is not a military loan. If you are thinking about getting a payment for your military pension there are some things that you should know.  First of all, you must have a monthly income of at least $400 per month or $5,000 a year after all of your deductions and taxes are taken out. You must also have a credit score of at least 600 or more on all of the three major credit reporting sites. You have to have less than 45% of your money come from disability. At least 55% must come from the military in a source other than disability.

All bankruptcies must have been discharged at least two years before you apply and you must have had fair to good credit since that time. Payment history on your credit must have been fair to good for the last two years. It is ok to have a few slow payments. You must be a resident of the United States with a U.S. address. If you have been denied a military pension because of poor credit in the last eighteen months because of credit rating, you cannot be issued a pension advance. The only way that you can be approved in this situation is if there has been a drastic improvement in your credit situation since your last application. Under no circumstances can a pension advance be given to anyone with a poor credit rating or a score below 600.

A lot of companies feel that once you have started receiving a pension payment every month, you have all the collateral that you need to get financing. As soon as you are approved, these companies will purchase some of your future payments at today’s present value.

Pension payments are not like military loans. Instead of getting a loan that you have to pay back, you get a lump sum payment and give up your right to future payments of your pension. This is a simple idea. Unlike traditional loans that are for specific purposes, pension advances can be used for whatever you want. So, you get the money that you need and get to use it for whatever you want or need.

It is usually cheaper to get a military pension advance than it is to get a traditional loan. There are little to no fees involved with this advance. You do not have to pay financing and interest charges. You simply give up the right to your future payments and get the money all at once. It is much simpler and can save you time and money.

Reference Sites:
http://ezinearticles.com/?Getting-a-Military-Pension-Cash-Advance&id=172575
http://www.acfunding.net/pensionadvance.htm
http://www.militaryretirementpension.com/