As someone who was once active duty military and is now a retired member of the military service, you know the United States of America is known for a lot. It’s the land of the free and the home of the brave. Land of the pilgrims’ pride. A country where freedom rings.
Perhaps more than anything, the U.S. is filled with opportunities, and that includes financial ones, like when you’re looking to buy a necessity but don’t want to use credit cards or seek financial assistance through the Department of Defense or Department of Veterans Affairs. Loans for veterans are very real and military members all around the country have leveraged personal loans for veterans successfully, with favorable loan terms to boot even if you’re no longer serving as an active duty service member.
30% of service members say that if they were in debt, they would turn to the military for help, according to polling conducted by the National Foundation for Credit Counseling.
Whether you have a great credit history or poor credit history, looking to get out from credit card debt or seek the funds for something important and fun, here are some answers to common questions you may have about loans for veterans and so you can take advantage of the best options for your needs.
What can you purchase using a veteran military loan?
Regardless of whether you’re aiming to pay off credit card debt, need money for an emergency expense or want to get away for a weekend, loans for veterans allow for all of these uses. Unlike VA loans, which are designed for those who want to buy a house without needing to come up with a down payment, personal loans for veterans are extremely flexible. How you choose to use the funds is entirely up to you. It’s always helpful to examine the loan terms and conditions that come with every loan product, but generally speaking, online lenders are more inclusive than exclusive in this regard.
What types of personal loans are available to veterans with bad credit?
Again, generally speaking, the same types of personal loans that are accessible to those with good credit are also available to those with less-than-stellar credit. The only difference between the two is interest rates. Competitive rates incentivize borrowers to adopt smart buying habits, such as always paying for items before their due dates, maintaining low balances and not maxing out credit allowances. These strategies also help you avoid credit card debt.
Some exclusions may apply with every online lender when it comes to terms and conditions, but you shouldn’t have a problem identifying what those are; the only online lenders worth your while are those that are fully transparent. If you have bad credit, it’s incumbent upon the lender to inform you of what’s what so you’re not left to guess.
What are the requirements for a veteran personal loan?
If you’ve ever applied for a loan at any point in your life, you won’t be surprised by the application requirements. You can approach it like you would if you were intending to purchase a house and wanted a pre-approval letter. Generally, when applying to the typical personal loan lender, you may need the following:
- Proof of your military status
- Proof of your military branch
- Name and address
- Date of birth
- Copy of your credit history
- Employment details
- Tax documents
- Pay stubs
Every online lender has a different process, but these are some of the materials that they may ask for to determine if you’re eligible for a veteran personal loan. Perhaps the most obvious aspect outside of your service in the military, is the fact that you’re no longer active duty military. If you do not have the proper credentials that can corroborate, your local Department of Veterans Affairs will be happy to assist you with what you need.
These materials get you in the door; approval is another matter. You can be sure that at Omni Financial, we examine each application individually and in context with any verifiable facts you present us with. We realize that not one situation can be identical to someone else’s. Because of this, we adopt a highly customized approach to lending and treat each application on its own merit and circumstance. In short, even if you have bad credit, we would like to try to help you every step of the way.
Does the VA help with debt?
It may be that you’re a veteran who is experiencing debt and want to pay off what you owe through a loan’s proceeds. In these situations, 30% of service members say that if they were in debt, they would turn to the military for help, according to polling conducted by the National Foundation for Credit Counseling.
So that answers that question. While it’s a great thing that the Department of Veterans Affairs offers military benefits in the form of financial assistance programs, approval isn’t quite that simple, as there are a number of hoops you might have to jump through to determine if you’re eligible. Some of the plans that are available may not interest you or the qualifications may cause confusion.
Confusion over eligibility and red tape (meaning excessive bureaucracy) are among the reasons why more veteran and active duty service members take out a personal loan instead. The process tends to be simpler and less regulatory in nature.
What is the difference between a secured and unsecured personal loan?
An unsecured loan is one that requires no collateral on your behalf; a secured loan does. So if you were unable to pay the loan back, you surrender your collateral, such as land or something else of value.
That’s the beauty of personal loans for veterans through Omni Financial, we offer unsecured loans to make the application process simple.
Now that you know more, it’s time to get more — loans, that is. Contact us today for more information.
The information provided in this blog post is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial professional to determine what may be best for your individual needs.