06 Oct Veteran Auto Loans: What Are your Options?
Military service can actually hurt people’s credit score and this can have an adverse effect on their ability to borrow for years after they leave active duty. It is hard to be able to keep track of bills when a person is deployed and it’s very easy to miss a payment or two. Building and maintaining credit with a secured credit card or a gas or department store card is not the most feasible when you’re overseas, so folks typically have to start from scratch when they get back home.
When people’s income largely comes from a federal stipend, such as receiving a living allowance while they go back to school on the GI Bill, lenders can be concerned that such a mode of income might end during the life of loan. This isn’t much of an issue for those who are receiving a pension, however, as that’s unlikely to cut off at any point.
Buying a car after returning from active service is an important part of resuming normal life. The U.S. Department of Veterans Affairs tries to help veterans with a wide variety of situations, but it unfortunately does not currently have a program that guarantees auto loans.
There are many private lenders have a special regard for military veterans and tend to offer them special financing terms and discounts. However it is always wise to beware of scammers- one should always thoroughly investigate any terms that sound too good to be true; but there are plenty of lending institutions offer military car loans to both active duty and retired personnel. They may be more forgiving of splotchy credit histories, offer lower interest rates and require less or no money down. Loans for veterans can be even more advantageous than those for active duty service members.
Finding such a lender can be a simple matter of getting on the phone, calling around or searching the internet, basically conducting some due diligence. You can also ask the dealer to help you; dealers want to move cars and will usually help someone in need find the financing they require.
Thank You For Your Service. Now Let’s Get You A Car.