Military Travel Loan Requirements

A military travel loan is what a member of the military can obtain for non service-related travel expenses. The loan term will depend on the lender, and the amount of the loan proceeds. If you are on active duty or a veteran of the military, and you need to cover some travel costs, make sure you understand the terms of repayment before you take out a military travel loan. You may be able to obtain the funds by using a different loan product that offers a better repayment structure.

Military Travel Loans

If you are going to take out a loan for personal travel expenses, most lenders require that you only use the funds for their intended purpose. If you are currently on active duty and you are overseas, the loan proceeds can be deposited into your account once you have closed on the paperwork. In addition, a non-military spouse does not qualify for a military travel loan, due to their civilian status.

Since travel loans are unsecured, the interest rate and credit qualifications will vary from lender to lender. The amount you can obtain may depend on your ability to repay and your credit history. However there are some lenders that offer travel loans for military members with bad credit, or no credit.

If you have had bad credit in the past, a military travel loan can actually help you to re-establish your credit rating, if you make all of the monthly payments on time. If you have never had any credit before, the loan helps you start to establish credit.

Loan Terms

You may be able to get a more favorable loan package if you have the monthly loan payments made using your military allotment. Since these payments will be made automatically, the lender should give you a better interest rate. Find out if your lender offers this incentive, before you agree to the loan terms.

Smaller loan amounts usually have a short repayment term, and the interest rate may be higher than you could get from a traditional lending source. You may even want to consider using a regular credit card if the travel expense is small, depending on the interest rate the card carries. There are government travel cards available for certain members of the military, so you may want find out more information about these to use for your travel expenses.

Travel loans are different than military payday loans since you will have payments to make on a regular basis. It is important to understand the loan terms in order to make sure your budget allows for the monthly payment. If you begin to have trouble repaying the loan, do not let the loan fall into delinquency. Contact your lender and explain the issues you are having. They may require a statement from your unit commander to verify the reasons for your delay in payment. Most lenders will work with you, until such time that you can begin to repay the loan as agreed.

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