Payday Loans for People in the Service: Military Payday Loans

The industry of payday loans is quickly growing in the United States. The reason for its flourishing lies in the economical hardship of the last couple of years and the increased need of many people for immediate financial help. While most payday loan types are available to anyone who meets a few basic requirements, military payday loans are especially designed to meet the needs of military personnel. Those who are in the service of the armed forces are people, just like us, with normal human needs. Sometimes, their loved ones have health problems, their cars break down, and they have bills to pay.

One frequent question is the following: why should military personnel fall under a different category of loans? Why shouldn’t they get regular loans, just like everyone else? The answer is quite simple: until the passage of the FY 2007 Military Authorization Act, the majority of lenders tended to charge huge interest rates for members of the military. The new military payday loans are treating their customers more fairly. To avoid the abuse which was possible in earlier times, instead of applying interest rates, many lenders now have a fixed fee of $10 to $30 per $100 dollar loan. The loan is available for up to 14 days, until the next paycheck arrives. Repayment periods can be extended to the following payday, but in this case, a new fee will be charged.

To obtain military payday loans, the applicants only have to provide a proof of their military service, have a checking or savings account and provide a verifiable phone number. Some lenders might ask for the LES (Leave and Earnings Statement), but that is not a common practice, and many companies will not even run credit checks. Military loans are granted to retired personnel as well, but given the fact that they no longer have paychecks, the loan will be then called military cash advance. The usual amount of a military payday loan can vary from $500 to $1000. However, the amount can get a lot higher, depending on the rank and revenues of the applicant.

If applicants for the military payday loans are based in the United States, they will receive the borrowed money in their checking account in 1 to 5 business days. For applicants based overseas, the services of Western Union will allow almost instant access to the money. Another option is Wire Transfer, in which case the money will get to the borrower by the next working day.

There are no restrictions on how to and for what to use the military payday loans. It is your money, your call. A valuable piece of advice is, however, to only resort to these payday loans in case of financial emergencies. Always read and re-read the fine print and the information regarding applicable fees for late payment. It is a good idea to consult yourself with fellow soldiers, as some of them may already have some experience with loans and may be able to help you with useful tips. Be smart, be careful, and be free of the hassle of late payments.