Since the personal finance category is the most used section in our forum, we chose to dedicate a full page to providing some quick recommendations, facts, and tips. Learning basic money management skills could prevent many military members from getting into debt because of poor financial decisions. Those most at risk are new recruits and recent graduates who begin making more money than they ever have before and haven't been trained to make a budget, set aside money for savings, or maintain healthy spending habits. Servicemembers and their families can have a successful financial outlook by building a good credit score, creating an emergency fund, avoiding debt, and spending less. Luckily, online resources like Military Forum exist solely to uncover the extensive opportunities given to military members.
U.S. laws restrict lending institutions from providing high interest credit offers to active duty servicemembers and their dependents. Laws also prevent the filing lawsuits against active duty military members and their dependents due to a loan in delinquency or default. Creditor's products must be compliant to The Military Lending Act and the Servicemembers Civil Relief Act or they could be prosecuted by the Justice Department. These military consumer protections promote fair lending procedures and policies.
The Military Lending Act (MLA) may be a lengthy law to read through, but what you need to know is creditors cannot offer a loan with rates exceeding 36% to an actively serving military member or dependent.
The Servicemembers Civil Relief Act can be traced back to the Civil War but was not signed into law until the 1940s. This law protects the rights of active duty military consumers and their spouses. Whether they are preparing for a personally procured move (PPM), an overseas deployment, or change in rank, military members can experience a backlog in their finances and home life. This law prevents credit providers from garnishing wages, foreclosing on homes, and otherwise harassing military borrowers.
Being an enlisted member of the military and an online borrower means your financial decisions are automatically covered by federal financial protections. Take the time to find an online lender that has positive customer reviews and will give you the friendliest rates. For reservists, active duty military members, veterans, and military families, unsecured military loans can be used for any purpose including travel costs, home improvements, and business expenses. The loans are MLA and SCRA compliant. Above all, reputable lending platforms cater specifically to active and retired military members from all ranks and branches and get them the cash they need with fair rates and affordable terms.
Military protection laws placed on personal loans also cover credit cards. The SCRA instructs credit card providers to lower existing pre-service debt interest rates to 6% for servicemembers while they are on active duty. However, there are credit cards available that better serve enlisted military members and their spouses by providing even lower SCRA rates and other special incentives. A military credit card can provide military members financing with zero fees on overseas transactions, a special 4% SCRA rate, 4% interest rate for up to a year if ordered to deploy or during PCS, and up to 5% cash back on groceries, gas, and military base purchases. If you spend a lot of money flying family members around the world, there is also a military rewards card that allows you to redeem points for travel. Coordinating credit card services to meet your needs can help you save more money, earn more rewards, and establish better credit history.