Army Loans: What to Look Out For

Army loans can be a great way for you to bridge the cash flow gap between pay days, provide funds in the event of a financial emergency or crisis, or to pay for some much-needed maintenance on your home. The great thing about army loans is that you do not need to give a reason for requesting and applying for the loan; your loan can be approved within days and you do not need to go through extensive credit checks in order to qualify for approval.

However, there are a lot of unscrupulous companies out there who will charge you far more in interest and fees than they should, and use unethical collection practices to force you to pay back these exorbitant sums. Here are a few things to look out for when choosing your loan company.

If you are applying online, make sure that the site you are using makes use of Secure Socket Layer (SSL) technology, and that their payment methods are completely secure. Since army loans can be delivered to any bank account in the world, providing that you are a U.S. citizen, you need to make sure that the loan company you choose can send funds electronically as quickly and safely as possible. Also, it always pays to shop around first, because interest rates can vary from just below credit card rates to more than double the current rate of common credit card rates.

Be aware of loan companies who claim to be offering U.S. government loans, as there are few, if any, loan companies directly affiliated with the U.S. Army or the U.S. government. All army loans are considered as private agreements between a U.S. citizen and a loan company, and your status as a member of the United States Armed Forces only serves to act as an assurance to the loan company that you are less likely to default on your loan. The reason for this is that active duty members of the army can easily be found, wherever they are located in the world.

In addition, you’ll definitely want to look out for loan companies who offer you army loans without any credit checks whatsoever—this should be a red flag to you. Small payday loans can be given without any kind of credit checking, but applications for army loans, as well as other similar, large-sized loans, cannot actually be approved without a thorough and solid credit check and background check. You will need to prove that any bankruptcy charges against you have been dismissed for at least a year, and that you are not undergoing debt restructuring or debt counseling. Any company offering you a large loan without requiring a credit check is likely a scam, or illegal in some way.

Always keep in mind that the onus is on you to make sure you do not take out army loans without first investigating all of the options and consequences. Be aware of all of the costs involved, and work out how much the loan will cost you in the long run. If you pay off the interest and a small amount of the capital, you should easily be able to stay on top of any army loans you decide to apply for and take out.

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