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Ask a Military Bank: How Military Members Use Personal Loans



Welcome to our guide on personal loans for the military community! Whether you are an active-duty service member, veteran, military spouse, or retired military personnel, dealing with money matters can be challenging. Have you ever needed money for something important but couldn’t quite afford it? A personal military loan is a smart way to cover the cost. Keep reading to explore the 10 most common ways to use a personal loan in the military.

What is a Personal Loan? What is a Military Loan?

In brief terms, a personal loan is a type of loan that doesn't require collateral and is usually offered by banks, credit unions, or online lenders. With a personal loan, you borrow a specific amount of money that you pay back over time, along with interest. In the armed forces, these loans are sometimes called military loans, armed forces loans, personal military loans, or military personal loans. No matter what you call them, these loans can be used for different personal needs and expenses.

How to Use a Personal Loan in the Military:

Personal military loans are like the Swiss Army knife of your financial toolbox—adaptable and handy for a variety of situations. Here are some of the most common ways military members use personal loans:

1. Relocation Costs

Permanent Change of Station (PCS) moves are a frequent reality for military families, often accompanied by unexpected and significant expenses. While some costs are covered by the military, many others, such as temporary lodging, pet transportation, or setting up a new home, can strain personal finances. Using a personal loan to cover these added expenses provides a financial cushion, ensuring an easier transition during the move.

2. Education Support

Education is fundamental to the goals of military families, but additional costs like tutoring or educational materials can strain budgets. Personal loans offer a solution by providing the funds to support children's educational needs during transitions or tough academic periods. Whether hiring a tutor to assist with the transition to a new school or investing in educational supplies and materials, a personal loan for military families ensures they can prioritize their children's learning without financial worry.

3. Home Improvement

Home improvement projects give military families the chance to create a more comfortable and personalized living space, even with numerous PCS moves and deployments. Using a personal loan for home upgrades means you don't have to wait to save up the money or deplete your savings. You can quickly modernize the kitchen, update bathrooms, or install energy-friendly systems. These improvements not only increase your home's value but also make everyday life better.

4. Military Spouse Business Startup

Military spouses often face unique challenges in maintaining steady employment due to frequent relocations. Using a personal loan to start a small business can be a game-changer, providing financial independence and flexibility. Unlike business loans, which can be difficult to qualify for and may not cover all startup costs, personal loans offer a simpler and often faster way to secure necessary funds. These loans can cover expenses like purchasing equipment, securing a workspace, or marketing the business. By starting their own business, military spouses can build a career that moves with them and thrives no matter where your family is stationed.

5. Growing Your Family

Building a family is an exciting and joyous time, but it also comes with significant expenses. For military families, a loan can provide the financial support needed to cover these costs without adding stress. Whether it's for prenatal care, hospital bills, setting up a nursery, or buying essential baby supplies, a personal loan for military members ensures that all necessary expenses are taken care of.

6. Pay Off Debt

Managing multiple debts can be challenging, especially for military families dealing with the unpredictability of deployments and relocations. Using a personal loan to combine debt makes everything simpler. Instead of paying lots of different debts every month, you only have to pay one amount, which is easier to manage. This also lowers the overall interest rate, saving money in the long run. Debt consolidation with a personal military loan reduces financial stress, boosts credit scores, and helps with financial stability.

7. Transition to Civilian Life

Transitioning from military to civilian life can be a daunting process with a variety of financial challenges. A personal military loan can provide crucial support during this transition period by covering expenses such as job training programs, relocation costs, certification courses, or even starting a new business venture. By accessing funds through a personal loan, military personnel can invest in their post-service careers, acquire new skills, and smoothly navigate the transition to civilian life.

8. Medical Bills

Military personnel may face unexpected medical expenses that aren't fully covered by their military benefits. In these situations, a personal military loan can offer a lifeline, providing the funds to cover medical bills immediately. Having access to healthcare without adding financial stress is essential, especially when individuals are already dealing with health concerns. A personal loan helps ease this burden, letting military members to focus on getting better instead.

9. Alternative to Payday Loans

When facing financial emergencies, military personnel might consider payday loans because they are easy to get. But these loans often have high interest rates and hidden fees. Instead, personal loans for military members are a better option. They have lower interest rates and clear repayment terms, making them safer. By choosing personal loans over payday loans, military members can avoid getting trapped in debt cycles and stay financially stable.

10. Emergencies

In times of emergencies, like unexpected car repairs or home maintenance, military personnel may find themselves in need of quick funds. Personal loans offer a reliable solution, providing access to money when it's needed most. With straightforward application processes and fast approval times, personal military loans offer peace of mind during stressful situations.

How to Get a Personal Military Loan:

Personal loans are flexible tools that help address the financial needs in the military community. Whether it's a PCS move or transitioning to civilian life, they provide a valuable way to manage finances effectively.

At Armed Forces Bank, we get it. As a top military bank, we are dedicated to serving the armed forces community by offering financial solutions designed for military life.

Ready to find a loan that fits your needs? Applying for Access Loans at Armed Forces Bank is quick and straightforward. Whether you're building credit or already have a financial track record, we make sure you get your money quickly by simplifying the process.

Ready to get started? For current clients, getting an Access Loan takes just minutes. If you are new to Armed Forces Bank, simply start by opening a checking account with us, then apply for the Access Loan. We are here to support you every step of the way.


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Subject to credit approval. Restrictions Apply. Direct deposit relationship required. Origination fee, 10% or $100 whichever is less. Annual Percentage Rate (APR) is based on credit score. Only one personal loan allowed to any borrower at any time. Loan terms are based on the loan amount.