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Military Loans FAQ |
 What
is a military loan? |
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A military loan is a cash loan made by
a private company to a member of the
US military or military family member. |
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How
much can I borrow? |
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Pioneer Military Lending, for example, advertises military cash loans
from $500 to $10,000. In general,
companies in the military lending
business use a number of factors,
including credit history, rank, time
left in current military contract and
debt to income ratio to determine the
amount that can be borrowed. |
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Can
I still get a loan if I have bad
credit? |
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Many if not most military lenders
understand that many applicants will
have either no credit history or a bad
credit history. And they also
understand that military members are
honest and
trustworthy.
Accordingly, many military loan
companies are willing to make loans to servicemembers where other financial
institutions such as banks may
decline. In fact, some military loan
companies specialize in bad credit
military loans. It doesn't hurt to
apply if you have bad credit, and you
may be surprised to learn that you are
eligible. |
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Military Loans
News |
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USA
Cares Offers Financial Assistance |
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8/18/2010 - In the spotlight: USA
Cares (usacares.org) is a non-profit
organization that provides military
families with financial support in
their time of need. |
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Loans
for Returning Military Veterans |
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8/08/2010 - A program administered by
the Minnesota Department of Employment
and Economic Development is offering
interest-free loans of up to $20,000
to returning military veterans who
want to launch their own businesses. |
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Military
Loans Good Alternative to Payday Loans |
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8/03/2010 - An article in the Dallas
Morning News on July 25th, 2010 touts
military loans as an alternative to
costly payday loans. The article notes
that military loans cost far less than
payday loans and have a much lower
APR. |
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AAFES
Offers Reduced Interest Rates for
Deployed Members |
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7/21/2010 - Servicemembers who have an
AAFES Military Star Card and are
deployed for more than 90 days may be
eligible for interest rates of 6% or
0%. Contact AAFES for more details. |
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More
news... |
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More Military Loans Information |
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About Military Loans |
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Before applying for a military loan with a
commercial lender, inquire first with your
base assistance office or organization that
assists servicemembers such as the Navy-Marine
Corps Relief Society. Low interest or no
interest military loans may be available for
servicemembers in need. |
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An October 2007 Department of Defense
regulation imposed a 36 percent APR cap on
military loans to military personnel and their
families. |
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The 36 percent cap has effectively put
military payday lenders out of the military
loan market. Military payday loans were
loans that were due the next payday and often
carried outlandish interest rates since the
loans were often rolled-over from payday to
payday. |
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Because of the 36 percent cap, local cash
loan stores are generally prohibited from
offering payday loans to military
servicemembers and their families. |
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Military loan companies can offer military
loans to servicemembers, including those with
bad credit, because loans are usually
repaid via allotments. |
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Be wary of loan companies that require
collateral or signing over the title to your
car to secure the loan. This can lead to
the repossession of your car and more
financial troubles. |
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