Loan Applications

Written by Liza Hartung
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The United States military likes to thank its members for being all they can be and for being some of the few and the proud. The people who make up the Army, Navy, Marines and the Air Force put their lives on the line every day. If they aren't out in the fields, they are preparing to be. They are prepared to defend our country at any time to keep intact our rights to life, liberty and the pursuit of happiness.

In living such a life, the military has made it possible for its members to apply for military loans. The main difference between these kinds of loans and regular loans is that the former are only for people in active duty or those who are 20-year career-retired military personnel. If you have never been in the military, you are not eligible for these loans. If you have been, you are in luck.

Military loans are given special consideration. The people who process the loans know what a military lifestyle is like. In addition, they are familiar with such paperwork as your ETS and your LES, both of which you have to provide when you apply for a loan. A regular bank or loan company doesn't have a lot of experience with military people. When you are working with companies familiar with your situation, you are likely to see better interest rates and loan quotes.

Applying for a Loan

It is easier than ever to apply for a loan. In fact, you can apply right here online. One of the great things about applying for a loan online is that you can't miss filling something out. When you use paper documents to apply, it's easy to skip a line here or there because of all the paperwork. The Internet, however, won't allow you to move on to the next page until everything is thoroughly filled out.

In order to be eligible to apply for a military loan, you have to fit certain criteria. If you aren't on active duty or retired, you need to work with the Department of Defense. When you fill out your application, make sure you choose the correct one. There are different applications for your current status in the military.

One great thing about military loans is that you can apply no matter what your rank. Your rank may affect your actual loan amount, but it won't affect whether you get approved or not. There are a few other factors that go into determining your loan amount and your interest rate. These are your credit report, years in service, your ETS and how much debt you have as compared to your income.

How Much to Apply For

It's generally suggested that you apply for the amount you feel you need. Take into consideration what you are going to do with the money. Are you buying a house, a car, taking a vacation or consolidating debt? It's good financial planning not to apply for more than you need. This puts you further into debt by not only raising your payments, but by having more money for which you are charged interest.

Before you apply for a loan, figure out what kind of payments you can make. This will help you figure out how much you can apply for. If you're having trouble with this step, there are plenty of loan-payment calculators online that you can use. After that, research a few companies first. Compare interest rates and payments before selecting the best one for you.

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