Active duty Military cannot take out payday loans. This is because of the law against charging unreasonably high interest rates to anyone in the armed forces. The only way that payday loan companies make money is to charge its customers with a higher than average interest rate.

Most cash advance companies will have questions on the application that ask its potential borrowers if they are in the Armed Forces or Military. While it is very possible to lie on this question, a lot of pay check advance companies will do minor background checks. Not to mention they will look at your checking account and identification and see that it is Military issued or involved.

Some companies ignore this law and will try to loan to people who are serving the country and this is illegal. Often they will say they are running special rates for people in the Air Force/Navy/Marines/Army. Don’t fall for that trap as taking out the loan is still illegal, and the company is well aware of that. If you have taken out a loan and are in the armed forces, a simple internet search to look up the laws is easy. Contact the company with the law and let them know you are in the armed forces and it was illegal for them to give you a payday loan.

Even though you may run into problems serving the country and need extra cash there are other ways to get assistance. The government has made payday loans illegal for the active duty men and women because of the unusually high interest rates. Try to borrow money from family or friends if you can. If this is not possible then check your local bank as most banks or loan companies have special credit card offers for people in the Military. Don’t take out payday loans.