If you are a member of the United States military, perhaps you have heard of military loans and have wondered if they are the right choice for you. A military loan is a personal loan that is available exclusively to active duty and career retired members of the Armed Forces, including the Army, Marines, Navy, Air Force, and Coast Guard. These loans have been around for more than 60 years and offer several benefits to people with all types of credit histories.
Almost everyone experiences financial challenges from time to time. Below are four ways a military loan can help you manage difficult financial situations.
1. Borrow money fast
The military lifestyle can be stressful. The last thing you need to worry about is being short on cash. A military loan can provide financial relief – and peace of mind – during those times when you have expenses that are a bit over your head. Borrow funds to help pay for car repairs, PCS moves, emergencies, healthcare bills, lease deposits and more. Applying for a military loan is easy, the approval process is fast, and you could have your money in as little as 24 hours after you are approved.
2. Build credit
Service members can sometimes have a difficult time obtaining credit. Since they are often young, they may not have had a lot of time to build a credit history. You need a good credit history – and a good credit score to go with it – to qualify for credit cards, car loans, and mortgages. A military loan is a way to establish a credit history and show that you can use credit responsibly.
3. Consolidate bills
If you have multiple high-interest credit cards with high balances, a military loan can be used to consolidate your debt. With debt consolidation, you can roll all your credit card balances into one loan. Instead of having a bunch of credit card bills with varying payment due dates, you will have just one monthly payment. It will simplify your financial life and you’ll reduce your risk of paying late and being socked with hefty late fees.
A military debt consolidation loan can also help you dig yourself out of revolving credit card debt since it is a fixed rate installment loan. That means your interest rate will remain the same throughout the repayment period and there is an end date by which your entire balance will be paid off. In many cases, the interest rate will be lower than the credit card rates so you will accrue less interest over time and save money. Read more about the benefits of debt consolidation loans.
4. Improve credit score
While it may seem counterintuitive, a military loan can help improve your credit score. If your credit history has been marred by late payments, a military loan can give you an opportunity to get back on track. Since the loan is paid back via allotment, you will always be paying on time. Payment history is one of the most important factors for determining a credit score and improving yours can help you gradually boost your score. Here are some other tips for how to improve your credit score.
Omni Financial has been a provider of military loans since 1950!
If you think a military loan is a right option for you, contact Omni Financial. We were founded in 1950 and are dedicated to responsible lending. Our military loans are available in amounts ranging from $500 – $10,000 and all our loans are backed by a 15-day satisfaction guarantee. Apply online, over the phone or in person at one of our branch locations serving over 50 military installations around the world. Our team will work with you to find a loan and repayment schedule that fits into your budget. We are happy to serve those who serve us.