Military Personal Loans

Military personal loans
are unsecured loans granted to
active duty or retired military
personnel. “Unsecured loans”
means loans where there is no
collateral being held against the
loan. There are no limits on how
you can use the money that you
get from taking out a personal
loan. Many borrowers use the
money to pay bills, take care
of long-needed car repairs, go
on a family vacation before
deployment or after they
return from deployment, buy
new furniture, do home repairs
, and to take care of any
number of other issues that arise in a normal family’s life.

Military personal loans usually have a repayment period of a specific term with set monthly payments that don’t change over time. For new borrowers who do not have an established credit history, taking out a small personal loan and repaying it promptly can help to build their positive credit history very quickly.

Potential borrowers who may be interested in applying for military personal loans can go online and search for lenders who specialize in this type of loan. They should be cautious and compare interest rates and loan terms to find the best deal from a reputable lender. Active duty borrowers should check with their senior officers whether there are other more favorable lending options available to them.

[Pullout:

]Quite often an application can be filled out online. An applicant should have his most recent Leave and Earnings Statement (LES), military ID and social security number ready before filling out the application. An applicant should read carefully the qualifications for the loan to see if they are eligible. Different lenders have different qualifications, but it is not usually difficult for active duty personnel to find a lender willing to lend them money. They just need to be sure that it is the best loan for them.

Most lenders will approve military personal loans up to $10,000 to first-time borrowers, depending on the individual circumstances. Borrowers should not borrow more money than they need. Remember, every dollar you borrow needs to be repaid with interest.

Do not apply with lenders who charge you money to apply for a loan, who have high penalty fees for a late payment, or who charge a prepayment penalty if you pay off the entire loan before the original end date.