Tuesday, January 15, 2008

How to Get a Military Personal Loan


Lenders who specialize in loaning money to active or retired service personnel present a lower-cost alternative to regular banks. Most military lenders will also allow you to borrow money from locations worldwide by approving your application on the Internet.


Difficulty: Moderate

Get a Military Personal Loan

Things You'll Need

  • Good credit
  • Active or retired military service record



Step One

Prove you served in the military if you're retired from active duty. Even if you've gone on to a professional career following your military service, you can still qualify to get a military personal loan. Both military personnel and U.S. Coast Guard service people qualify for military loans.

Step Two

Head online to find companies that specialize in military personal loans. There are many, and you should be prepared to spend some time comparing interest rates and loan terms. If you're still in active duty, your branch of the armed forces may have other, more direct loan options available to you.

Step Three

Get your most recent Leave and Earnings Statement (LES) ready, and have your military ID number on hand when you sit down to fill out your military personal loan application.

Step Four

Remember that the various loan companies outline their own qualification standards. Some require you to have a 20-year service record if you're no longer in active duty, while others allow you to qualify if you've spent any time at all in the military, so long as you received an honorable discharge.

Step Five

Identify the amount of money you need to borrow. Most military loan lenders will lend a maximum of about $10,000 to first-time borrowers, though specifics will vary from lender to lender.

Step Six

Apply online with the lender of your choice. Ideally, you should choose a lender who does not impose harsh penalties on late or missed payments or exorbitant fees on top of the loan principal and interest.

Step Seven

Remember that some military personal loan companies will allow you to cancel your loan application within a specified period, usually 15 days, at no additional cost. If you have any reason to suspect you may need to take advantage of a term like this, seek out a lender that includes such an offer.

No comments: