Military Loans There are military loans
specifically designed for military
personnel that can help service
members avoid or break the debt
cycle. Everybody needs a little
extra money now and then to
pay bills or cover unexpected
expenses, to pay off high
interest debt, to finance a car
loan or to buy a home. The
key is to research your options
and make an educated choice
that gets you the money you
need, based on your ability to
pay without getting you into a
never-ending cycle of debt. Many lenders offering
military loans employ
associates who are either current or former members of the military or they have spouses who are. This experience means that they truly understand the unique lifestyle needs of active-duty and career retired service members. These associates strive to influence service members’ lives for the better by providing a voice for issues within the community and political arena. There are military loans available to all ranks, and military personnel should access a lender who is dedicated to finding a solution that’s right for them. Military personnel should also inquire about specialty military loan products with reduced interest rates that may be available to them.
Military loan rates will vary depending on several factors such as the amount and length of the loan, current financial obligations and past credit history. Applicants with excellent credit can most likely expect a very competitive rate while those who have had some credit problems will find their rate will be higher. Applicants should research all of their options and compare rates that they have been offered from other military loan lenders. [Pullout: 
] The Center for Responsible Lending estimates that predatory payday lending costs American consumers $3.4 billion per year in excess fees. The payday lending business model is designed to cultivate repeat borrowers. Rather than filling a need for short-term credit, payday loans trap borrowers in escalating debt.
In many ways, soldiers are ideal targets for these abusive payday loans. They have a steady income from the government at an average of $1,200 per month for new recruits. At deployment time, when military families are faced with extra expenses at home and abroad, they may be more vulnerable to the promise of quick cash from payday lenders.
Soldiers at home and abroad need to know that there are competitive options for securing military loans from reputable lenders. They need to prepare for a loan application in the same way that civilians do: get a copy of their credit report and take a look at it, work to correct any errors that affect their credit score, write down a monthly budget that shows how much they can afford to repay each month, stop using credit cards, and get all of their personal financial information together in one place so that they have it ready when they want to apply.
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