posted on July 05, 2011 15:34
The key to obtaining a military personal loan, like any other form of credit, is to exercise some discipline in how much or even how often you choose to take advantage of loans. A military loan for a specific purchase can be a great decision, but if you don’t take the time to pay one loan off before obtaining another, you’re simply racking up debt the same way one might in maxing out credit cards. Of course this might not hold true if you are consolidating other higher interest debt with your military loan.
Here are some tips for considering a military personal Loan:
- Make sure the purchase is worthy.—Going into debt over "cool things you want" is rarely a good decision.
- Compare your available credit choices. Consider whether using a credit card, obtaining a different military loan, or using a finance deals offered by a retail store is better for your situation. Find out what the payments for each will be and see if those monthly payments can fit within your budget.
- As a part of #2, know what your monthly budget is—how much you make versus how much you spend each month. You may find that with a little discipline, you can make the purchase without using credit.
- Shop around for the best product. Don't be intimidated by the financial "speak" lenders and credit card companies throw at you. Get someone you know and trust to help you make the best decision about the loan if you're not sure.
- Always read all the fine print and know about hidden costs and fees before you sign for the deal—prepayment costs, etc. With Set Financial’s Loan Assurance, customers get a 15- day, no questions asked, return policy on all military loans.
- Give yourself some time to research and consider your options.
- Learn from all the above and start a savings account if you don’t already have one. Nothing beats the interest rate of a flat cash purchase. However, it is always a good rule of thumb to keep an emergency reserve. So don’t wipe out your savings account when a military loan can help you make a purchase and avoid depleting that reserve cushion.