Personal Finance

A Bad Credit Military Auto Loan Is Not Scary to a Lender

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If you are in the armed services and have credit, did you know you have a much better chance of getting approved for a car loan than if you were a civilian? That’s right. As a member of the military your odds of being approved are much better. Why is this? It’s all goes back to the how the system works. For any military wife there are built-in communities to support. But for a military wife, it implies lots of shifting around and separation for long periods from your husband while on duty. To ease; the military provides many benefits to ease the hardship, from discounted shopping and activities to support through transitions. Car loans for military personnel can be paid to the lender by the military before the soldier is paid. This makes even a bad credit military car loan attractive for many lenders. As a result military auto loans are something many auto lenders pursue. As a matter of fact many advertize guaranteed auto loans for military.

When you think about it, it makes a lot of sense. The reason most don’t pay their car loans or pay them on time is that they pay other things first. Sometimes this is very understandable in that it may be the rent or power bill and without paying them there would be serious consequences. But sometimes it’s also less understandable. The money is spent on non essentials. In either case, whether justified or not, the car lender doesn’t get paid or paid on time.  Through car loans for military personnel all these issues go away and suddenly the auto lender is at the top of the list every month. What a great place to be for the lender!

Even those with bad credit become acceptable credit risks and bad credit military car loans work especially well for them. Since they earn as much as any other soldier in their pay grade and since the car payment is going to be taken out first, it is easy to see how they can be viewed as good a credit risk as a person with “good” or “excellent” credit. For a lender a bad credit military auto loan is something they aren’t afraid of making. The end result is many soldiers with bad credit have the opportunity to buy a car which they didn’t have as civilians.

This becomes more of a gray area if a person has only a limited time left to be in the service. Once they are out of the military their payment can no longer be withheld and they are back in the same situation as everyone else. In a case like this the lender has a harder decision to make.

This is one great advantage to those in military service who have poor credit. While serving they should look into the possibility of financing their next car. It may be one of the best opportunities they will have. A great place to start looking for military auto loans is on the internet. There are many lenders there waiting to compete for the business. One smart way to go is to get car loans for military personnel on the net and with the financing in hand you can shop around at any dealer. Many internet lenders offer guaranteed auto loans for military.

From consumer products to auto loans, military family members receive many benefits that non-military citizens cannot have. Here provides military auto loans personnel regardless credit history.