Military Bad Credit Car Loan

For years military personnel have ended up with the short end of the stick when they come back to civilian life. Recently, much needed changes have come about to honor our veterans in a more suitable manner. One of these changes is the creation of car loans specifically tailored for military personnel. Serving in the military does not allow one much opportunity to establish a credit history. Guaranteed auto financing for military personnel helps you establish credit. They are offered by private lenders to retired or active service members.

Benefits of a Military Car Loan

There are several benefits to getting approved for a military auto loan. Service members are guaranteed to get the loan they need for a new or used car. Interest rates are generally lower. The term is longer, therefore monthly payments are lower.

Why Does a Military Bad Credit Car Loan Have Lower Interest Rates?

Military members, active or retired, have a constant, reliable income. The longer term of the loan allows the lender to still make a nice profit in spite of the lower rate of interest. On the other hand, the lender may let you set up your loan in such a way as to make extra payments or additional lump sum payments without penalty. This knocks down your principal and pays off your loan sooner. The lender makes a little less profit, but he gets his money back.

You Must Have Served in One of the Military Branches to Qualify

To be eligible for military auto loans you need to have been, or still are, in active military duty. Whether you have good credit, bad credit or no credit history at all, you can still qualify.