Auto Loans For Veterans
Are you military veteran? The Office of Veterans’ Affairs does not issue auto loans directly. However, your service may still be an advantage when financing a vehicle, as many dealers and lenders offer special financing offers for both active-duty and retired military. As a veteran, you may be entitled to discounted rates, and we can help. That’s why we’ve combined with an entire assortment of financial institutions who finance veterans all the time. Not only do we enable veterans to get approved, we can help you to get the best rates possible.
Veteran Car Loans: Getting Approved
It’s best to escape the headaches that come with trekking from one bank to the next, trying to find one that provides car loans for veterans at economical rates. Instead, submit your application through our cutting-edge program. When you do so, we attempt to match you to the best finance company according to criteria such as:
- Your Area
- Your FICO Score
- Your Budget
We work with dealers and lenders across the nation who love to finance military veterans. Whether you were an officer or enlisted, you may be eligible to receive a discounted interest rate or cash-back rebate. As you know, even a one percentage point decrease in your rate of interest could save you hundreds of dollars in total interest.
To get approved, just submit your credit application online. It will enter our advanced application placement system, where dealers and lenders compete for your business. We’ll leverage our sophisticated technology and industry relationships to get you in the driver’s seat with a loan you can afford. This is the truth: you’ll find no faster way for you, as a veteran, to secure the auto loan you need. Plain and simple.
Auto Finance Interest Rates for Veterans
When considering car and truck loans, veterans should look forward to APR’s that closely line up with their credit scores. Below are some estimations:
- Excellent Credit: 6-8%
- Decent Credit: 9-14%
- Bad Credit: 14-21%
Special Considerations for Veterans: Credit and Income
All auto lenders – whether they be banks, credit unions, dealers, or finance companies – are most concerned with two aspects of your application: your credit and your income. Maintaining a high credit score can be especially difficult for military personnel, as deployments and frequent changes of station can make it easy “drop the ball” on certain bills or payments. This can have devastating effects on your credit score. A single payment that’s 30 days late can decrease your score by 100 points. Because your credit score has such an important bearing on your loan approval and interest rate, it is important know your score. You can check your credit report once per year, for free, at AnnualCreditReport.com.
Income is another important factor. If you are a veteran with a pension or you receive a monthly stipend for living expenses while going to school on the GI Bill, then you have what’s known in auto finance parlance as a fixed income. This differentiates you from W2 or 1099 earners. Fixed income can be an issue with some lenders, especially if your monthly stipend terminates after a set period. After all, they want to make sure that you will be able to continue making payments after you finish school or your current contract. Pensions are generally not so much of an issue.
This just highlights the advantage of utilizing a service such as ours. Instead of going from lender to lender, hoping your particular financial situation will be a good fit for their lending requirements, we allow you to apply just once and get match with a lender who wants to fund your loan.
Additional Financial Resources for Military Veterans
As a veteran of our nation’s armed forces, you may be eligible to join certain credit unions and banks. Navy Federal Credit Union (Navy FCU) has a very good name in the banking industry, and you don’t need to have been a sailor to join. All DOD uniformed and civilian personnel may join. Unfortunately, they only have branch locations in DC, Virginia, California, and Florida.
USAA is another financial institution that’s focused on military servicemen and women. Originally, only officers could join USAA, but their eligibility requirements have really opened up since then. They now accept “active, retired and honorably separated officers and enlisted personnel of the U.S. military” for membership. For more on their eligibility requirements, go here. USAA continues to receive great marks for customer service, but they have only one branch location: San Antonio, Texas. For that reason, you must be comfortable with banking online and through the mail.