Getting a Military Auto Loan on Bad Credit

Securing an auto loan with bad credit when you are in the military is possible through lenders who specialize in military loans. It is important to note you are not getting the loan through the military or through the United States government. Rather, these are private lenders who understand the challenges and needs of people in service and will work with you as a result. You may want to ask other service members which organizations they have used for this unique need. Few people outside of the military truly understand the unique challenge of getting loans while you are serving or shortly afterward.

Why Good Credit Is Hard in the Military

There are a number of factors that make establishing good credit difficult when you are in the military. First, moving frequently means you will not have a place of extended residence. Many lenders are cautious about this because they will not be able to reach you in case you default on your loan. Second, spending time abroad means you may miss payments because you do not have access to your bank account or the ability to mail checks. Setting up direct deposits or placing a friend or family member in charge of your bills can assist in avoiding this problem. Another significant challenge to men and women in uniform is the time spent abroad means they do not need multiple credit lines within the United States. Very few members of the military will have accounts at department stores, grocery stores, et cetera, when they are not shopping in the United States.

Where to Go for Bad Credit Military Loans

Seek a lender that specifically advertises bad credit loans for the military. These lenders are familiar with the circumstances listed above, and they will be less likely to count those as strikes against you. Your local bank may have programs specific to service men and women who are seeking financing for autos and homes. The loans will be offered to those who have bad credit due when other loans would not be available. There will also likely be flexible repayment options that consider the challenges of deployment or re-entry into the workforce. Many men and women of the military may find they can defer payments while they are deployed. This is particularly true for National Guard members who are called to service.

What You Need to Secure a Loan

You will need proof of your military status and income to secure a loan. Many of these lenders will have direct access to your payment information so they may garnish wages or locate you in the case of a default on a loan. If they need to repossess your auto, they will need to know exactly where it is located. This means you must keep your lender informed of any moves or deployments and where your auto is at all times. Remember: military lenders are sensitive to your issues, but they are still businesses men. You cannot default on a military loan, or your car will be repossessed and your credit will be further tarnished.

 


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