Military life brings its challenges—from frequent PCS moves and spouse income instability to childcare concerns—that can result in unexpected expenses. A military personal loan can be a useful solution to address unforeseen costs, but as there are lots of options out there, it’s important to get the right solution for you.
Before you make the decision to take out a personal loan, it’s important to keep these top 5 considerations in mind:
1. Assess your income vs. current expenses.
Before applying for a loan, do the math to see how much income your household is actually bringing in. Your military pay is reliable, but your spouse’s income may be subject to change with job losses or the need to reduce hours to care for children or elderly parents. Outlining your expenses makes it easy to tell if you really need a loan or if you can cover your monthly bills with what you have.
2. Check your current loans.
How do you want to use the loan funds? Whether it is to pay for a large expense or consolidate higher-interest debt, AAFMAA’s $5,000 CAP loan’s low 1.5% interest rate could save you a lot of money in the future.
3. Calculate your upcoming expenses.
Understand how much money you truly need. Add up your regular expenses and zero in on the actual loan amount to suit your needs.
4. Don’t look too far ahead.
Do your best to focus on the ‘now’ and only spend what is necessary to afford what you need now. This will help you from incurring debt that could be hard to pay off.
5. Know your lender.
Many financial institutions offer low-interest loans to attract customers. Using a lender, you can form a relationship with, who understands the military lifestyle, can help you ensure you get the optimal terms for you and your financial situation. AAFMAA, and our solutions for your financial future, are here for you now, just as we have been for more than 141 years.
Our $5,000 CAP Loan gives servicemembers in ranks E-5 to O4 a trusted, affordable way to cover unexpected costs without creating unmanageable debt.
You receive:
- Five years to repay.
- No credit check.
- No collateral.
- No prepayment penalties.
- Quick and easy application process.
Ready to apply? Visit us online at www.aafmaa.com/cap or call us at (800) 846 – 1029 to start your application today.