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Military fair or bad credit auto loans can be sought from certain lenders who are familiar with the needs of service personnel. The loan is not provided by the government or the military, rather it will be from private lenders who are experienced in lending to military personnel. To find such organizations, you will have to talk to your friends in the service for suggestions or you could start by looking on the internet. Establishing a good credit history can be a challenge when you are in the military and hence getting a traditional car loan can become extremely difficult.

There are a number of reasons for this. Firstly, you are going to be frequently on the move and cannot have a fixed residential address. Most traditional lenders will not want to deal with you because they will not know where to find you if you were to default on your loan.

Secondly, if you are spending time away from the country you cannot access your bank accounts. Online banking is an option but it`s not really convenient to sit and transfer funds when under fire from a bunch of mujahedeen! But you can circumvent this problem if you set up direct deposits or ask a friend or family member to take charge of your payments. Lastly, if you spend a large portion of your time abroad you do not really need a line of credit in the United States of America.

If you do not want these things to be counted against you, then start looking for a lender who specializes in military credit or auto loans. They will ensure that they give you a fair deal taking into consideration the fact that these factors are beyond your control. Also talk to your personal bank to find out whether they have specialized programs to help you get a loan given the fact that the bank account would have been opened with the help of your organization.

In order to secure such a specialized loan, you will first have to provide proof of your military status and also your income. You will also be required to inform the lender about your location of deployment and the location of the vehicle. The former is however not incumbent upon you given the fact that most deployments are classified or are on a need to know basis. A military loan gives you a lot of leeway to explain your situation and get a fair deal.

There are also loans that will give you rates which are much lower than a conventional loan, given the fact that you are a man or woman in uniform doing service for your country. The government will also provide a lot of incentives such as tax rebates and small loans with long duration repayment schedules. But a loan is always something that you will have to pay back eventually. If you fail to have a repayment mechanism set up or if you fail to do pay, your car can and will be seized. But if your car is not located, your credit record will suffer. You are a regular citizen when it comes to your credit history. No explanations can be given after defaulting on a payment to rectify the credit record. You need to ensure that it does not get messed up in the first place.