Applying for a loan when there is a financial emergency can be a stressful event. The emergency needs to be dealt with fast, and even waiting for 24 hours might not be good enough. We all have times when fast access to cash is needed, even military personnel, who have at least the benefit of military loans with no credit checks.
The fact that a loan might be processed without a credit check means that approval is more assured and set to be granted fast – but not every lender offers this luxury. Members of the armed forces can access these loans for a number of factors, not least their high job security rating. In that light, offering guaranteed military loan approval is makes sense.
Still, everyone has to qualify and meet set criteria to have any chance of securing approval, and military loans are no different. But once these conditions are met, approval becomes extremely likely.
How No Credit Checks Works
Ignoring the credit history of an applicant seems foolish, but lenders are taking only a calculated risk. In fact, when it comes to offering military loans with no credit checks, lenders are not taking on any great risk at all. After all, the US government is their employer, and their employment status is extremely safe.
What this actually means is that paychecks are guaranteed, while typical private sector risks, like redundancy and employer bankruptcy, are non-existent. To lenders, an applicant with such a secure source of income can comfortably be approved, which is why guaranteed military loan approval is offered.
Lenders might charge low interest rates when dealing with these applicants, but the loans they offer are not that big. In fact, even military loans are kept to a maximum limit of between $ 1,500 and $ 2,000. That is just enough to handle financial emergencies, but nothing else.
Terms to Expect
There is no doubt that a key advantage getting military loans with no credit checks is that the approval time is extremely short, taking no more than a few hours. But there are some negative aspects to these deals too that should be considered, and terms that should be expected.
The loan is a limited size as it is designed to help the applicant out of a financial emergency, in much the same way as a payday loan is provided to civilian applicants. The difference is that interest rates are low, compared to the high rates civilians face. And with repayments essentially guaranteed, military loan approval is only a formality.
The loan is deposited directly into the bank account of the borrower, but repayments are taken directly out too. This removes the chance of defaulting on the loan, but also means that the income each month is lower. Offering military loans makes a lot of sense to both parties.
Seeking military loans with no credit checks definitely has its advantages, but despite the speed with which approval can be granted, it is necessary to provide certain documentation. Basic criteria can be confirmed very quickly, but confirmation of service in the military is necessary too.
To enjoy guaranteed military loan approval, rank and deployment history is often required, and this is checked against military records. However, this is done very quickly with a military ID number entered into a computer and confirmed details showing up immediately.
Lenders might also contact the designated base to confirm, while a permanent address (family home) is also required in case of sudden deployment. Getting military loans is straightforward if all the boxes are ticked.