Will I qualify?

[Anonymous]

Hi, I'm seeking to get a personal loan of 25k. My credit history is only 1 year and 2 months old but my score is 750 for all three bureaus. I'm active duty military and I pull in 27k gross with a less than 5% debt to income ratio because the military pays for mostly everything. I have 100% on time payments with 2 credits card and a 1k credit builder loan that is now closed. I have already factored in the payments, insurance and a little safety net for maintence. With all of this will I qualify for the loan or will I have to wait until I have 2 years of credit history?  Thanks for the help.

[IQn2D]

What is the 25K loan for if I may asked. Car, Motorcycle, Boat??? What rank are you? I figure maybe a E-4 or E-5. Seems to me you should have a good amount of money saved up. I gather that thought from your post, sinced the Army pays for everything. You most likely live in the barracks or are you ghost riding. I know you got to be eating in the chow hall. If you have a low DTI then you should have a good amount of money saved up. Again, you said the Army pay for everything. 

[Anonymous]

I'm an E-4 and I want to use the loan to buy a car and few other things. I have 10k of expendable savings but I want to use it to pay off the loan if i am able to qualify. If 25k is not feasible, how about a 20k loan?

[IQn2D]

Here are my two option from you Soldier.

Option 1: Go see if you can find a used car from the POV resale lot on post. You may find a diamond in the ruff for less than 10,000. By doing this it will allow you to build back up your reserve. You will own your vehicle. 

Option 2: Go to the Credit Union on post and apply for a loan. I'm sure you will qualify but may get a better rate. You are a first time buyer so that may get you some extra incentivives. They also have repo cars for sale. 

Your focus should be saving for your furture. Too often I have seen Soldiers waste thier money. You are young enough to begin saving for your retirement/transition. That's if you plan on making the military a career. 

Have you talked to your Team Leader, Squad Leader, Platoon Sergeant?

Ultimately, you will do what you want but your leadership should be giving a chance to help. I know that you may not want them in your business. I was in your shoes many moons ago. I still wear the uniform to this day. All I can say is stop and think...

[Anonymous]

Thanks for your words of wisdom, I really appreciate it. I'll definitely go see the finance office on base Monday to see if they can assist me in going about this in a smarter way.

[IQn2D]

Army Community Service is where you need to go. Peace

[SouthJamaica]

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@Anonymouswrote:

Hi, I'm seeking to get a personal loan of 25k. My credit history is only 1 year and 2 months old but my score is 750 for all three bureaus. I'm active duty military and I pull in 27k gross with a less than 5% debt to income ratio because the military pays for mostly everything. I have 100% on time payments with 2 credits card and a 1k credit builder loan that is now closed. I have already factored in the payments, insurance and a little safety net for maintence. With all of this will I qualify for the loan or will I have to wait until I have 2 years of credit history?  Thanks for the help.

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I don't think you would qualify because you would be getting over your head in debt.

But even if you do qualify, you shouldn't do it. It's too much debt for you.

[Anonymous]

Honestly speaking, I feel you shouldn't take out a loan. You have already saved $10,000. Save another $10,000 and then buy a car and other things. Believe me, it's not a good financial move to incur debt unecessarily. 

 You have a good credit score. You should focus on building credit. Rest is up to you.

If you're considering a credit union, then Alliant Credit Union is a good option. 

[Anonymous]

You shouldn't have a problem getting your loan. While my AAoA was considerably longer, I was in the re-building stage, had one CC with a $300 CL, had just gotten back in with AT&T, had removed a few of my baddies, and I was approved for $18K auto loan (only took $13K of it). Good luck and thnak you for your service.