When it comes to financial hardships, even military servicemen are not safe. However, because of their status, they often have more financial options available to them and with better rates and terms. Yet, when the money is needed quickly, military payday loans can be a solution.
How Are Military Payday Loans Different From Regular Payday Loans?
These loans are different because of the strict regulations imposed by the Military Lending Act (MLA) to protect military consumers. For example:
• The interest rate for any military payday loans must be capped at 36%
• Certain disclosures and military consumer rights must be provided by lenders
Although the regulations imposed by the MLA help protect military cash advance borrowers, they do not extend to other transactions, such as:
• Financing of retail sales
• Military installment loans
What Are the Requirements?
To be eligible for military cash advances, you first have to meet the basic requirements that many lenders need. Such requirements include:
• You must be a US citizen
• Be at least 18 years of age
• Having a bank account (preferably a checking account)
• Generating at least $1,000 per month (total net income)
Once the basics have been met, you also need to be one of the following:
• A retired military serviceman with a 20-year career
• A military active serviceman
• Or an active reserve military member
Along with the application, you will be required to provide references to confirm your affiliation with the military. Additionally, you may be required to provide a copy of your most recent leave-and-earnings statement (LES).
If all of the conditions are met and you are approved for a loan, the lender will directly deposit the funds into your provided bank account. Once the funds are in the account, you are then able to immediately use what you need.
Other Financial Options
If you are unsure if military cash advances are right for you, there are other options available to military personnel and their dependents. Such options may include:
• Banks and credit unions which provide special rates and offers for those that serve their country.
• Loans from friends and relatives. If you only need a little help between paydays, asking for help from those closest to you can be safer.
• Military aid societies. The Air Force Aid Society and Coast Guard Mutual Aid. Navy and Marine Corps Relief Society are also helpful. The Army Emergency Relief can also offer financial assistance to military personnel.
• Credit cards. There are credit cards that exist to help consumers no matter what their credit ratings are. Remember to shop between companies for the best terms and rates.
If you are with the military and need money fast, payday loans can be the solution you are looking for. Remember it is crucial to handle your loan with utmost care to ensure that you do not obtain more debt.