Military Personnel Find it Easier Than Ever to Qualify for Personal Loans

If you’re in the military you might find it easier than ever to qualify for personal loans from banks and other lenders. That’s because most lenders recognize that military personnel are performing a great service for the country. In recognition of this, many lenders are providing instant approval to military personnel applying for personal loans. Many lenders aren’t even running credit checks before approving servicemen and servicewomen for personal loans. The reasoning is simple: Men and women in the military have income guaranteed by the U.S. government. That’s an extremely stable salary. At the same time, these men and women are making huge sacrifices to benefit the country. They deserve a financial break here and there.

Research Still Important

Even though it’s easier for members of the military to qualify for personal loans, that doesn’t mean that service personnel don’t have to do their research before taking one out. The first step is for them to look carefully at their own financial situation to determine if they even need a personal loan. There might be other sources of cash or financing available to military personnel who need a quick influx of cash. Personal loans, though they may be easy to qualify for, are not cheap. The average interest rate on these loans tends to hover from 12 percent to 18 percent. That’s far higher than the interest rates usually charged on auto loans, mortgage loans or business loans. It’s more in range, in fact, with the interest rates applied to credit-card balances.

Know the Costs

Before applying for personal loans, military personnel should also ask their lenders or banks for an exact account of the fees that these banks will charge. In addition to interest rates, these loan fees will determine how much it costs military personnel to borrow money through a personal loan. Fees vary greatly from bank to bank, so it behooves members of the military to do their homework first. They should call at least five different lenders or banks in their hunt for the best interest rates and fees.

Signing the Papers

Before signing any papers that make their personal loans official, military personnel should make sure that they are familiar with any other fees they might be charged. Some lenders charge excessive late fees to borrowers who miss even one payment. Others charge pre-payment penalties that are levied against borrowers who pay off their loans early. By doing the research, military personnel can guarantee that they’ll get the best personal loans for their situation, and at the lowest cost, too.



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