Bad Credit Military Loans

If you are an active duty (or, in some situations, a reserve or separated) American service member, you may be familiar with a fairly recent law that makes it more difficult for service members to get a bad credit loan. The law was enacted as part of the Fiscal year 2007 Military Authorization Act, and makes it illegal for creditors to grant certain bad credit loans (such as payday loans or car title loans) to American military members.

The law was enacted to protect service members from high interest rates charged by many of these lenders. One of the side effects that it has had is that it made it more difficult for service members to find lenders who can grant them short term loans, particularly where the service member has bad credit.

The law prohibits any lender from charging more than 36 percent interest to military borrowers. Fees, service charges, renewal charges, credit insurance premiums or any other product sold with the loan must be included when calculating the interest rate.

The law has closed down many payday loan operations around military bases. Such operations can currently be seen outside the gates of almost every U.S. Military installation in the states. Under the new law, lenders will not be allowed to lend money to military members or their families using a check, or any other means of access to a financial account, as security for the loan.

So, this sounds like great news to military members.

However, what do you do if you are in the military and you need a bad credit loan? There are no such things as military payday loans anymore.

Here's what you do. Go to Pioneer Military Lending. They have some of the best rates for bad credit military loans available. And they fully comply with all lending rules, making sure you are protected and get the best possible rates.