No Credit Check Military Loans: 3 Important Factors to Consider

Members of the military are just as prone to financial emergencies as the rest of us. It’s all about handling the same financial pressures as everyone else, and whether it’s due to an unexpected medical bill or final notice, the need for a no credit check military loan can become acute.

There are some pretty obvious advantages to this loan option, including the fact that no credit check loan approval is granted very quickly. In fact, the approval can be granted in a few minutes and the necessary funds deposited in the borrower’s account in 4-5 hours.

There is no doubt that this provides an advantage to applicants. However, there are a number of other factors that need to be considered before applying for this military loan.

1. Approval is more likely

The challenge for anyone with poor credit is finding a lender willing to give them a loan. Traditional lenders are often unwilling to take the risk, so they insist on checking an applicant’s credit history. But getting a no credit check military loan means credit history is ignored.

What this means is that even applicants with extremely poor credit have loan options open to them, so there is an opportunity to rebuild their credit standing. Basically, it is possible to get approved for the loan without a credit check when the lender focuses solely on the borrower’s ability to make the payments.

All lenders want to know before granting this category of military loan is that the applicant will have enough in their next paycheck to pay off the debt in full. And with the bank details provided, the repayment is made immediately, ensuring that the borrower cannot stop paying, even if he wanted to.

2. Limited amounts for emergencies

It would be nice to secure large military loans with no credit check, but the facility is available only with small sums. In fact, the most common provided sum is just $1,500, which should be enough to handle most unexpected financial crises.

The reason boils down to the amount of risk the lender is willing to accept. Anyone looking for sums as low as $5,000 may need to agree to special terms if they hope to get approved for the loan without a credit check, such as a higher interest rate or longer repayment term. For a $50,000 loan, for example, the lender will want to verify the reliability of the applicant.

Also, because these types of military loans are mostly the same as payday loans, there can be considerable pressure to meet your repayment schedule. Typically, the loan is paid in full with the next paycheck, which could be as soon as 14 days. A $5,000 loan can be paid off in 90 days.

3. Agree a repayment period

There is no doubt that after getting a no credit check military loan, the immediate cost of repayment is very high. This is mainly because the short term of the loan means that the lender would make little or no profit if he charged the normal rate. A 14 day loan at 10% APR would generate only a few dollars in profit.

With longer-term loans, you spread a healthy profit over a set number of months, but this luxury isn’t available when you secure loan approval without credit checks. Therefore, the interest charged can reach up to 30%.

However, for larger loans, there is the possibility of agreeing to a payment schedule longer than the normal 14 to 30 days. As mentioned, a $5,000 military loan could be paid off in 90 days, or a $10,000 loan in 6 months. Even $1,500 could be paid off in 60 days, if the lender agrees that it would be too difficult to meet the early payment.