Payday Loans

How To Qualify For A Cheap Military Payday Loan?

Unlike other pay day loan programs, a military payday loan does not charge an extremely high rate of interest provided you are borrowing it from a legitimate and reputable lender. In fact, since these loans are subsidized by the Pentagon Federal Credit Union Foundation, genuine lenders are legally obligated to offer these loans without charging any interest. The only cost involved with these loans includes a nominal processing fee. Therefore, if you are in military, you have a unique advantage as long as payday cash advances are concerned. These short-term loans are issued for a couple of weeks, where the due date is often the next pay day when you get your monthly salary. Following is a brief rundown on some of the important things that you must keep in mind in this regard.

Eligibility Requirements

In order to qualify for an interest-free military payday loan, you first need to be someone who is working in military. Besides that, you must also first go through a credit counseling session from a government-approved counselor. The counselor will review your financial condition and then will issue a certificate explaining whether you are an eligible candidate for this loan and whether you are financially capable enough to make the repayment in a timely manner.

The Maximum Amount Of Loan

As part of a military payday loan, you can borrow a maximum of $500 or 80% of your monthly salary, whichever is lower. In a single year, you cannot borrow more than five such loans.

ARK Loans

It is also important for you to keep in mind that these loans are commonly referred to as ARK loans, where ARK stands for Asset Recovery Kit. Therefore, when you start your hunt for these types of loans, you should look out for those companies that offer ARK military pay day loans. You can find many such stores very close to where you live. But, before you borrow a military payday loan, you are recommended to first do a thorough background check of the company to ensure they are duly licensed and legitimate ones. You can also check their past record with the Better Business Bureau to find out if there have been consumer complaints against that company in the past.

The Cost Of Loan

Though it is true that these loans are usually offered at 0% interest rate, there are still some finance charges that you may have to pay on a military payday loan. The fee has been fixed at $6, which will be charged to you regardless of the amount of money you actually borrow. It means whether you borrow $100 or $500 (the maximum limit), you will have to pay $6 as finance charges.

It is also important to note that in order to qualify for these loans, you also need to be a member of a credit union. If you are not, there will be some paperwork that you will have to complete. You can become a member by depositing a small amount of money in a savings account. Overall, a military payday loan makes a good financial option for military personnel provided the terms and conditions match the standards set by the laws (as explained above).

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