Members of the US army can also apply for payday loans. However, the default rate involving military personnel is lower compared to ordinary employees. This is because non-payment of financial obligations could lead to a transfer, court marshal, confinement, clearance and in severe cases, discharge from service. Hence, the military payday loans are limited to no more than 40% of the monthly take home salary.
Why Military Payday Loans Are Different?
Since the military personnel are representatives of the state, they need to be good role models at all times. However, it cannot be helped that emergencies arise and they need instant cash to get by. Enter payday loans and the same benefits apply as all the other borrowers. But the provisions of the FY 2007 Military Authorization Act as implemented by the US Department of Defense, military payday loans are now guided by the following guidelines:
• Military personnel who have had payday advances are no longer allowed to provide their checking information for security purposes. This first guideline goes against the requirements set by most lenders.
• Members of the US army and their families are not allowed to use their vehicles as collateral.
• There should be no interest fees or repayment fees applicable for any military personnel. Hence, lenders providing military loans use quick fees instead of interest percentages.
Regardless of the guidelines set, the best rated lenders are able to work around these restrictions and still provide quick cash loans. Some privileges given by the military payday loan companies include:
• Lower interest rates backed by the information that military personnel have a more secure job than other employees.
• Flexible repayment options. Military members can choose to pay back earlier and no repayment fee is given.
• Since the law prohibits access to a military’s checking account, the lenders cannot directly deduct the money owned plus interest. Therefore, the payment is done through a post-dated check.
But of course, if you are not a member of the military you will not be entitled to military payday advances. However, you can apply for regular payday loans from a carefully chosen top rated company. Regular payday advances have fewer restrictions but only the top rated firms can provide the best privileges. These privileges include discounts for loyal customers and free prepayment options.
Requirements for regular payday loans include an active checking account, a completed online form, and a proof of income. In the event that you cannot pay the money borrowed back on time, the best rated lenders are willing to provide extensions with terms and conditions patterned after the loan law of your specific state.
With the many perks and benefits that you can get by applying for payday loans from companies that are in the top tier in the industry, you don’t have to be in the military to avail of special benefits. Regular payday loans have many advantages and will do well if you know how to use payday loans well and when to apply for one.