Man receiving a military loan

Ins and Outs of Military Loans

Military Loans for service personnel are available to active members and their families online and with local banks or credit unions. Guaranteed Loans for Military active members in the armed forces are available online with a simple form to fill out and you can find out instantly what loan you qualify for and at what rate. These loans can be used for a variety reasons, education, travel, car purchase or an emergency of some kind.

Easier Approval

Many military lenders say yes when others will say no to lending you money. Being you are always employed by the government and can not be fired or laid off due to the economy today and you are active in the military, helps guarantee your loan. This can also sometimes get you a better rate than a civilian may receive or qualify you for a loan you would not normally get.

Lower Rates

If you need a car, auto loans for military are available and you may be able to receive a low percentage rate to finance your dream car and save you money in interest rates. Auto loans are available at military base credit unions and banks and also available online. You also can be pre-approved for a loan now while you are looking for a car so you know the amount ahead of time and how much your finance charge will be.

Loans for military members have a big advantage as they often have a lower percentage rates. Guaranteed loans for military members can range from $1,000 to $25,000 which depends on your credit score of course. Loans for military personnel have a lower percentage rate than regular bank loans. A bank may rate you at an 8% interest rate, while a military loan will rate you at a 5% interest rate. Your credit score will determine at what rate your loan percentage will be set. 

Automatic Payments

Making automatic payments on your military loan, is that really a disadvantage or an advantage? Automatic payments are a no-brainer so you have less to worry about, especially if you are deployed on a mission and do not have the time to mail in your payment. You might consider automatically deducting from your checking account each month for you loan payment so you do not have to worry about it being late and paying a penalty even if the company providing the loan doesn't require it. You will never be late with a payment so your credit score will increase as time goes on and at the end of the loan, when paid in full, your credit score should go up.

Last Updated: January 08, 2015