Military Loans and Predatory Lending

Question: Are military loans considered predatory cash loans?

Answer: Not necessarily. Predatory lending happens when a financial institution offers loans with triple-digit interest rates, applies excessive administration fees, or deceives the borrower with the intent to gain profit.  So, any type of loan can be deemed predatory.

Question:  Are military loans classified as subprime?

Answer: They can be. Several military lenders offer subprime loan products. However, they’re not always considered subprime (subprime loans are designed as loans for bad credit). Often times, military loans are not categorized as subprime. Rather, military loan products were developed as a benefit to the men and women serving our country.