Military Payday Loans

The use of payday loans is on the rise, as individuals struggle through the current economic conditions. Payday loans are loans that help individuals make it to their next paycheck in case of an emergency situation that requires the individual to have some extra cash set aside. Most individuals don’t have enough cash on the side to cover emergency situations, which is why payday loans are such a big market. Payday loans are also offered for people in the military as well. In fact, military payday loans are specifically designed for military personnel. Getting approved for a military payday loan may be more difficult than traditional payday loans.

The reason why military payday loans will be more difficult to obtain will deal with certain regulations set by the Uniform Code of Military Justice. The UMCJ states that if military personnel cannot meet their financial commitments, the military can impose certain punishments and restrictions on the soldier. However, if the individual shows their need for financial support because of a certain situation or an emergency that arises, they will be allowed to use a military payday loan. Individuals who are in the military and overseas can also be approved for a military payday loan as well.

Not everyone can apply for a military payday loan. Only members of the armed forces can apply for a military payday loan. The process of applying for a military payday loan will be slightly different than a traditional payday loan. For example, most payday loans require identification such as a social security number or a bank account. A military payday loan will require the military identification in order to qualify for the loan. If the applicant cannot present proof of their armed forces identification, they will be denied the military payday loan.

The rank of the military applicant will play a huge role with how much they will receive on their military payday loan. Military members are allowed to borrow up to 40% of their monthly pay. However, different ranks in the military means different amounts of take home pay. The higher of a rank an applicant is, the more cash the military member will receive on their military payday loan. Military personnel should expect to receive their military payday loan anywhere from 1 to 5 business days, depending on where the military member is serving. Members of the armed forces overseas have the option to receive their payday loan in the form of a wire transfer.

Military payday loans do not charge interest for the loan. Instead, the loan charges a fixed amount, which is the fee for the payday loan. However, the fee that is associated with the loan is an extremely high interest rate when converted into an interest rate format. For example, if a military payday loan has a fee of $15 for every $100 that is borrowed, the interest calculated on the loan will be almost 400%. Most view this as an outrageous amount, but in times of a financial emergency, these loans are a necessity.

Military payday loans are used for a wide variety of reasons. Military members are often moving from one location to another, wherever the armed forces send them. Some military services provide financial aid to move, but the financial aid offered may not cover all expenses. Military payday loans are often used to pay for moving expenses, consolidating bills, paying for emergency situations, etc. There are plenty of situations that call for emergency funds to help someone in the military, and military payday loans are used as a solution to these financial struggles. Military members can apply for these loans easily by going online and visiting a military payday loan website.