The Lowdown On Military Cash Advances
Military cash advances are a loan taken out against the bank account where the borrower receives their pay. Loans must be repaid within a pre-determined amount of time. Borrowers incur higher interest charges than those imposed by banks and credit unions. Military cash advances are designed primarily for families experiencing financial hardship during the deployment of a service member.
Service members applying for military cash advances must endure the same process as civilian applicants. Successful applicants have at least 90 days in their place of employment, are 18 years of age or older, have citizenship or permanent residency in the United States, and have a valid checking account in their own name. All companies have a mandatory monthly income requirement for applicants. The amount varies by lender.
Submit applications for military cash advances in person or online. Specialized local establishments handle applications and all required paperwork. Many lenders do not want to deal with military loans due to special handling requirements. Look for businesses specializing in military loans to receive desired services.
Online companies offer military cash advances. Use caution during the application process. Companies offering the best deal may not be located in the United States. Research all companies before submitting information to avoid identity theft. Applying online requires access to a fax machine and/or scanner to send and receive required documentation.
Before military cash advances are distributed, the lender verifies all personal information. Applicants sign forms stating they are aware of loan interest rates and the repayment schedule. Funds are deposited within 12 to 24 hours after processing, depending on the length of the verification process and time of application submission. Funds are subject to a service fee, deducted upon distribution.
Borrowers use their military cash advances as they wish. Use funds for emergencies, bill payments or leisure activities. Lenders do not place limitations on the use of funds after distribution.
Repayment of military cash advances varies by lender. Funds are debited directly from the borrowers bank account on a predetermined payday. Borrowers can repay the loan in full, or pay on an installment plan.
When opting for an installment plan, borrowers are restructuring their previous loan. Additional interest accrues on unpaid amounts until the loan is paid in full. Depending on the lender, borrowers have between 30 and 60 days to repay the debt.
There are a couple of ways which military cash advances differ from their civilian counterparts. Applications for military personnel have a faster processing time. Military bases make employment verification a simple process for lenders. In cases of default, service members are easy to locate with assistance with other military personnel. Federal regulations cap interest rates for military cash advances at 36 percent.
While the loans seem like a quick solution to financial problems, it is easy to become overwhelmed when the loans are not immediately paid off in full. Without proper planning, borrowers can incur overdraft charges due to automatic bank drafts during the repayment period. Financial experts advise military personnel to exercise caution when dealing with military cash advances.