G asked in Politics & GovernmentMilitary · 10 years ago

does anyone know anything about USAA Bank?

Im a new soldier in the army, im getting stationed in alaska in two weeks.. I want to buy a pick up truck when i get there. But im not sure if i have credit because i didnt pay off a student loan..

But i heard about a way that you can get car loans with out a credit check, and they just take the payment directly out of your military paycheck.. Is this true and how do u do it and what is the interest rate

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  • 10 years ago
    Favorite Answer

    USAA is an awesome bank. I highly recommend it to any military member.

    As far as your credit, like any other bank, USAA will run your credit. If you have bad credit it will affect your interest rate or your ability to get the loan at all.

    When you refer to taking it out of your military paycheck, that is an allotment. An allotment is merely a convenience for you to have a payment for an existing loan or service taken out of your paycheck and automatically forwarded to your creditor. An allotment is not a loan from the military.

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  • jim
    Lv 7
    10 years ago

    Thank you for wishing to serve your country. You do NOT want to take out a loan to get a car. Period. You don't make enough as an E1-E2 to pay that, plus have money for other expenses. If at all possible buy a used vehicle from a private party.

    But since that enormous salary Uncle Sam gives you is burning a hole in your pocket.

    1- USAA WILL do a credit check, and yes they are absolutely excellent. YOU set up the allotment, not the bank. You can check interest rates on line just go to their website.

    2- Your credit's going to suck because

    a. You defaulted on a student loan

    b. You only make about $12-14K a year

    c. You're not a college graduate

    d. You're single

    e. You're most likely male

    f. You will have no money for a down payment.

    Ergo you won't get the interest rates quoted. They will probably deny you credit. Remember that whole defaulting on mortgages thing? That has GREATLY tightened up money for loan.

    3- Anyone who offers you a "no credit check" loan is going to charge the maximum interest rate allowed by Alaskan law. That could be up to 30%. Whereas average car loans run about 0.9 - 4.5% for folks who meet their financial obligations. I STRONGLY advise you to find an online car loan payment tool so you can see how differing interest rates, and down payments change your monthly payment.

    If I sound harsh, good I am. I've counseled more than my fair share of young enlisted troops about buying ridiculously expensive cars (which depreciate immediately after you drive it off the lot). I also booted a couple for not being financially responsible.

    It's your career.

    Source(s): Retired LtCol
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  • 10 years ago

    You heard wrong. They will do a credit check. They are not going to give a loan to just anyone, even if they are in the military.

    And they do not take it directly out of your paycheck. You will have to set up an allotment for the payment, just like any other payment. Just like when you set up an allotment to have some money go into your savings account, or into a different bank. Same thing.

    The interest rate will depend upon your credit rating, just like with any other bank. It could be high, it could be low. It just really depends!

    Source(s): AF spouse - 22 years USAA member since 1997
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  • AD
    Lv 7
    10 years ago

    USAA offers good rates but they still check your credit. All you can do is apply and see if they approve you or not. I would highly recommend using their Car Buying Service to find a car since it'll show you the place with the cheapest cost in your area versus getting ripped off by one of the dealerships that's five feet outside of the front gate.

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  • 10 years ago

    You might want to call a USAA banker directly about that one...In my experience (my dad is ex-military) they have excellent customer service and, because they were founded specifically to support the military, are able to assist in a wide range of issues.

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  • 10 years ago

    They are great, been with them since the day I hit OCS.

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