While there are plenty of loan options to be considered, each offering really benefits to borrowers, members of the military have arguably the pick of the bunch. It is not uncommon for either civilians or military members can get loans where lenders ignore their credit histories before deciding to approve, but no credit check military loans boast some of the greatest benefits available.
For members of the military who are suffering the ill-effects of the economic downturn, this loan option can be a financial lifesaver. However, there are some terms and conditions that applicants should keep in mind. For example, loan sizes are limited, and a 3-month pay back term adds a certain degree of pressure.
But the advantages of these military loans are impossible to ignore and as long as the criteria is met, and the details in the small print are understood, it can be a hugely beneficial financial deal.
Typical Loan Terms
As great as they sound, no credit check military loans are not the solution to every financial situation. These loans are limited to sums of between $100 and $2,000, so they are perfect to deal with small debts or emergency situations, but are not enough to consolidate debts completely.
In the civilian world, these are known as payday loans. They come at very high interest rates, with some lenders charging as much as 25% and the repayment term very short indeed, sometimes just 14 days. The military equivalent retains affordable interest rates, and a 3-month pay back term means the pressure to repay is not as great.
The costs of these military loans are much lower than the civilian payday loans, so military members benefit from their association. But that is not to say that compromises are not made. Borrowers still must make the repayments.
How No Credit Checks Work
Granting loans to applicants without checking their repayment history might seem foolish, but a no credit check military loan is a safer bet. Military members enjoy a very high job security rating, with their employers being the US government. Redundancy and employer bankruptcy, therefore, are practically impossible.
Also, through the use of bank accounts, funds on an approved loan can be transferred easily to the account of the borrower, and repayments are withdrawn automatically each month too. So, there is no chance of defaulting on the loan. For 3-month pay back terms this is actually essential.
And with monthly payments guaranteed, lenders are happy to charge the lowest interest rates on a military loan. After all, they face practically no risk so approval is practically guaranteed and almost immediate.
Criteria To Consider
The basic criteria that applicants seeking a no credit check military loan must meet are pretty straightforward, but failure to do so means loan approval is impossible.
To start with, applicants have to be over 18 years old, and must be a current member of the US military. This status means they are US citizens and have a reliable source of income. Of course, only by being a member of the military can an applicant qualify for the terms of a military loan.
Providing access to a working bank account is essential to come in line with the 3-month pay back terms. And when these loans are repaid in full on time, the credit ratings of the borrower improve greatly.