Military members who are either on active duty or retired are able to take advantage of special auto loans. These loans are provided by private lenders, but especially reserved for military members who need help financing a vehicle purchase due to credit problems. Some people may also know these as auto loans for military members with bad credit. This article will familiarize you with this lending option and help you decide if it is the right choice for your next vehicle purchase.
Guaranteed Approval for Military Service Members
The design of these auto loans is such that military members receive automatic or guaranteed approval. This is because, unlike traditional auto loans that are given based on a credit history, military auto loans are given based on secure military (i.e. government) income. Therefore, retired military members who collect a regular pension are also entitled to military auto loan benefits.
The nature of these loans means that having bad credit, or no credit, is not a problem for members of the military. Private military lenders will work with you despite your credit problems to get you the vehicle you need as a means to say thank you for your service.
Bonus: Flexible Repayment
Another bonus for military members who take auto loans from private lenders is the repayment schedules that they offer. Unlike traditional auto loans that are usually only offered in three or five year terms, auto loans for military members with bad credit can be designed to accommodate your pay scale specifically with a range of repayment period options.
The interest rates on these guaranteed loans is relatively fixed, meaning that you can determine how long you need to repay the loan based on its principle amount. Looking at your monthly budget and income, have a solid figure that you can afford to pay each month and then base your loan term on that figure.
Internet Applications Make the Process Easy
One final benefit to auto financing through auto loans for military member with bad credit is the ability to use the internet to find the best loan for you. Through private online lenders, military members can compare rates and terms across several loans before they even go shopping for a car. This way, the negotiation of price in terms of loan application is negated at the auto dealership, allowing the buyer to focus on getting the car or truck he or she wants at the best price.
In order to conduct and online search for an auto loan for military members with bad credit, it is first necessary to identify several lenders who offer this option. Then, you can simply fill out a short form to see how much money they will offer, at what interest rate and at what term. Calling individual lenders to negotiate is another way to guarantee the best deal. Once you have decided on a lender, you are ready to get a car.
Taking Time to Research
As a member of the military, you are intimately familiar with the many dangers that lurk out in the world and the internet is no different. That is why taking the time to research the online lenders you contact can be worth it in the long run. Make sure that the lender is legitimate and has good ratings as a business. Also, do not let him pressure you into making a purchase that is larger than your budget can support.
Private lenders offer excellent packages to military members with bad credit. Auto loans are guaranteed with these lenders and by doing a little research a member of the military is entitled to a great deal for a new car or truck.