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» Military Personal Loan Tips
» Basic Rules of Borrowing
» Identity Theft- A threat to military families



Military Personal Loan Tips


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:
  1. Make sure the purchase is worthy.-Going into debt over "cool things you want" is not always a good decision.


  2. Compare your available credit choices- like a credit card, different size military loans, or finance deals offered by different stores. Find out what the payments for each will be and see if those monthly payments can fit within your budget.


  3. 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.


  4. 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.


  5. Always read all the fine print and know about hidden costs and fees before you sign for the deal.-Prepayment costs, etc. With Lexicon Loan Assurance, customers get a 15- day, no questions asked, return policy on all military loans.


  6. Give yourself some time to research and consider your options.


  7. 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.
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Basic Rules of Borrowing for the Military


For every common sense rule to borrowing there are a half dozen other things you might not know or consider. Common Sense Rules for Borrowing:
  1. Don't borrow to maintain a lifestyle or to satisfy a want if you can’t afford the payment.— Borrowing money to refinance a big screen television isn't the wisest choice if you have other debt and bills piling up


  2. Know your budget in great detail before you borrow.--Many times what sounds like a "low payment" doesn't fit within your budget but you wouldn't know that if you don't capture what your budget requirements are on paper.


  3. Don't be "wowed" by military marketing-speak in advertisements. "Low rates" and "easy payment terms" for the military are only catnip. Don't be lured into clicking and buying a military loan on the Internet simply because the lender seems to be the most visible and boasts they are an exclusive military lender. Take time to understand the loan product and the terms of the loan. Also, if you're not sure, take the time to speak to someone, a live person, about the military loan before accepting anything.


  4. Don't take on more debt while in debt. Develop some patience and pay off one loan or unsecured debt such as a credit card before taking on new debt. Take your credit cards out of your wallet or purse and leave them at home. That way you only use them for real emergencies, not the whim of the day.


  5. Once you've taken the military loan or used the credit card for a purchase, don't pay just the minimum payments. Try to be aggressive with your payments by adding just a bit more to them each month. In this way you'll find that you'll pay the loan/debt off sooner and pay less in interest charges. BUT....make sure that your loan doesn't have prepayment charges or penalties or avoid prepayment penalties altogether.


  6. Keep an eye on your credit report and credit score. Good credit is the ticket for getting the best rates on loan products. If your credit history and your credit score aren't up to par, you're doomed to only being eligible for higher interest loan products. Also, you should only do business with lenders that report to the credit bureaus.
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Identity Theft- A Concern for the Military


A life in the military can require a service member to move frequently, as well as spend extended periods of time away from home, both of which are common with those victimized by identity theft. In addition, there are many Internet-based risks.

Did You know…?

An Active Duty service member can place an “active duty alert” on your credit report, which requires creditors to take steps to verify your identity before granting credit in your name.

An active duty alert is effective for one year, unless you ask for it to be removed sooner. If your deployment lasts longer than a year, you may place another alert on your report. For more information visit on setting up an active duty alert visit the www.ftc.gov/idtheft.

DETER & Detect Identity Theft: (Good Practices)

    1) DETECT
      1. Routinely monitor your financial accounts and billing statements.

      2. Everyone is entitled to one free credit report per year. So take advantage of it www.AnnualCreditReport.com.

      3. Review your financial accounts and read your billing statements regularly, looking for charges you did not make.


    2) DEFEND
      1. As soon as you suspect identity theft it is best to act swiftly to protect yourself.

      2. Place a “Fraud Alert” on your credit reports, and review the reports carefully.

      3. Close any accounts that have been tampered with or breached.

      4. Contact the fraud departments of each company where an account was opened or changed without your okay and follow up in writing.

      5. Ask for verification that any disputed account has been closed and the fraudulent debts discharged.

      6. Retain copies of documents pertaining to the identity theft.

      7. Report the theft to your Commanding Officer, local and military law enforcement, as well as the Federal Trade Commission.


    3) OTHER GOOD PRACTICES
      1. Don’t give out personal information unless the receiving party is a trusted organization/person.

      2. Shred, or SAFELY store, all financial documents and bills.

      3. Safeguard your government ID’s, including your, Social Security card, military ID and MYPAY DFAES information.

      4. Don’t let your mail pile up unattended.

      5. Never lend your credit cards or account information to anyone else.


    4) MITIGATE ONLINE RISK
      1. Frequently changing your online account usernames and passwords.

      2. Do not fall victim to phishing, which is the practice of fraudsters pretending to be financial institutions and sending spam or pop-messages in an attempt to capture your personal information.

      3. Frequently check your computer for spy ware.

      4. Install virus protection on your computer and always operate behind firewall protection
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