Military Loans With Bad Credit: Securing the Best Terms Possible

There was a time when having a very low credit score was enough to turn lenders off approving a loan application. When it comes to military personnel, however, the availability of military loans with bad credit means even bad credit borrowers have a chance to ease their financial woes.  As with all loans, there are set criteria that must be met before a loan can be granted to them, though they do enjoy some advantages civilian applicants do not. Their job security, for example, makes securing loan approval quite straightforward.However, with bad credit a realistic issue for millions of Americans – including military personnel – the task of securing vital funds is a priority for many. And a military loan is the ideal solution for those who qualify for them.Qualifying for Military LoansAs mentioned above, it would be a mistake to believe securing military loans with bad credit is a walk in the park. There are still strict qualifying criteria that need to be satisfied before any approval can be given. Of course, only members (and former members) of the military forces, including the coast guard, national guard and even reserves are eligible.The basic set of qualifying criteria cover issues of age (must be over 18), citizenship (US national or legal long term resident), and having a reliable source of income. But since applicants must also be members of the US military before securing loan approval is possible, all of these factors are covered anyway.Applying for a military loan that is affordable is another key issue, so there are loan limits that exist. Lenders will also look at the degree of existing debt an applicant has, and use the 40:60 debt-to-income ratio before deciding on approval.Loan Options to ConsiderMilitary lenders are like any other type of lender, in that they have a selection of loan packages on offer. However, when seeking a military loan with bad credit, there are two principal options available, with the best one depending on the type of applicant.The first type is available to those with no credit history rather than a poor credit history. These are usually recruits that joined straight from high school and, therefore, had little opportunity to develop a credit history. Securing loan approval is less difficult for them.The second option is designed for those who have a credit history, but may have seen their scores plummet in recent years. These are usually military veterans who have perhaps retired and are struggling financially. A military loan would provide a valuable injection of cash for them.Securing the Best TermsWhile traditional lenders tend to offer poor terms to bad credit borrowers, the employment and income security that being a member of the military has means they are willing to offer better terms to those seeking military loans with bad credit.In essence this means lower interest rates than normal, but there are other ways to lower your costs and improve your terms when securing loan approval. A key part of this is understanding the finer details of any loan agreement, so be sure to read the small print in detail.It may also be possible to defer interest and fees payments, thus ensuring the early repayments are kept as low as possible. This is especially important when high late fees apply and keeping your military loan affordable is a priority.