Unfortunately, the nation’s great heroes often find themselves in debt after leaving the military. In fact, U.S. veterans are 12 percent more likely than non-veterans to spend more than they earn. Also, they are 9 percent more likely to conduct problematic behavior with credit.
Excessive debt and late payments lead to low credit scores and application rejections. After sacrificing so much for the country, U.S. veterans deserve reliable financing for cars and other large purchases.
Read on to explore bad credit loans for veterans. Learn everything that you need to know about securing credit after transitioning to civilian life.
What Are the Options for a Veteran With Bad Credit?
The good news is that lenders recognize veterans’ demand for bad credit loans. There are over 22 million veterans in the United States, making up roughly 8 percent of the population. As a result, there are a number of credit options available to vets with poor credit.
A personal loan is designed to be a short-term infusion of cash. While there is not a pre-set loan amount, the values are generally on the lower side. The same concept holds true for the loan term.
Also referred to as installment loans, the intent of a personal loan is to quickly provide you with cash. Personal loans are paid back on a monthly basis.
Besides the provision of fast cash, there is one other primary benefit to personal loans. In general, the fees and interest are more competitive than using a credit card. Some lenders provide better rates or more flexible terms for veterans as a courtesy for service.
Another type of loan for those with poor credit is a payday loan. This type of loan is appealing to veterans facing a financial emergency. For instance, consider how you would pay for a broken appliance or an unexpected hospital trip.
Payday loans provide you with a cash advance on your biweekly or monthly paycheck. Financial relief from a payday loan is almost immediate. Some lenders provide access to funds within 24 hours.
The loan term varies depending on the lender. In addition, payday loans are not large with the maximum amount in the $5000 range.
Another common financing type is online loans. The concept and structure are similar to a personal loan.
The benefit, however, is the ease of application. You can apply online and receive an approval determination within seconds. Many online loan applications do not require a credit check.
Some veterans find success in consolidating their debt. There are a number of benefits to debt consolidation.
For starters, you can turn a significant number of loans into a single monthly payment. This strategy is easier to manage and improves the odds of making on-time payments. Another benefit is that you can reduce your expenses on high-interest credit cards. This is achieved by securing a lower annual percentage rate (APR) than your existing loans or credit cards.
A Recap of Bad Credit Loans for Veterans
After caring for us, our veterans deserve to be taken care of financially. Bad credit loans, such as personal or payday options, look beyond credit scores to reach an approval decision.
If you are in search of bad credit loans for veterans, contact us today for further assistance.