In today’s economy, paychecks do not go as far, and it seems the paydays are farther apart. No one is immune to emergencies, including members of the armed forces. Military members like anyone, can have situations arise that must be dealt with. Military payday loans can be a viable option when funds are needed quickly.
Military personal are separated from their families a good deal of the time. Families and spouses are left to deal with the monthly finances. Individuals in the military do qualify for payday loans. Many lenders do not require a copy of the members leave and earnings statement or LES. The borrower must be at least 18 years old.
Additional qualifications are, the borrower must be on active duty at the time of the loan, and have an active checking account. The applicant will have to provide proof and in, most cases, access to the account. The lender for most military payday loans will automatically deduct the loaned amount, plus fees the next payday. The fees can range from $10 to $30 per $100 borrowed. The maximum amount that can be borrowed may be based on the individual’s military rank.
Having an active checking account where family members have access is crucial in some cases. The funds if deposited in a joint account will be available for anyone on the account. Rarely will lenders loan money to individuals without an active bank account. The service member may be stationed far from home, yet the loan can be deposited in a joint account for the family to use. Lenders will not deposit the loan into an account not associated with the service member.
The fact that the borrower is a member of the military in good standing is all the collateral needed for a loan. There is documentation that must be provided to show proof of eligibility. For example, a uniformed services identification card.
Failure to pay the loan principal plus fees may result in a renewal of the loan with additional fees attached. The fees can add up quickly until the agreed upon amount is paid back. Many lenders advertise that the loaned amount can be deposited in a matter of hours. The application and approval process takes less than 30 minutes, in most cases. Banks though, have their own schedules. It is important that the borrower be aware of time zones and banking hours. In some cases, the money may not be available until the next bank business day.
Military payday loans are there for those that need funds in a hurry. Many people do not have access to credit cards or personal lines of credit. Payday loans must be paid back in the time specified. Keep in mind, the lender does have the ability to deduct the amount from the service member’s checking account.