FAQ's about the MILES Military Financing Program
Am I eligible to apply for a loan? If you are an active duty Service Member, E1 and above, you are eligible to apply for a loan through the MILES Program. However, other requirements may apply.
Do I need good credit to apply? No, MILES is a non-credit score criteria based program.
What loan amount do I qualify for? The MILES Program wishes to prevent you from committing to a loan payment larger than your income and spending plan can afford. Your maximum loan payment will be the lesser of:
- A percentage (27%(E-1 - E-3)) or (30% E-4 and above) of your monthly base Pay, OR
- 45% of your total income less your monthly financial obligations, such as credit card balances, repay advances, installment payments, rent/mortgage payments(not offset by BAH), or child support, alimony, and garnishments.
This formula, of course, assumes you are prepared to take on the responsibilities of loan payments and vehicle ownership.
How is the term of my loan determined? Our lender, US Bank, has agreed to authorize the term of your loan up to twice your remaining time on your active duty contract, to a maximum term of 60 months. For example, if you have 24 months remaining on active duty, you will be authorized for a term of up to 48 months.
When is my first payment due? The first payment due date of the loan is the first day of the month following the full month after the date of your loan contract. For example, if your contract date is anytime during the month of April, your first payment due date will be the 1st of June.
How do I determine the cost I should pay for automobile insurance? Like shopping for an automobile, it also pays to shop around for car insurance. Premiums can vary by hundreds of dollars among insurers for the same vehicle. Premiums are affected by the following: your driving record; your age; your credit score; gender or marital status; make and model of the vehicle, your state and city of residence.
What type of vehicle standards are enforced with the MILES Program? To maximize the quality and value of your vehicle purchase, the following standards are required for vehicles purchased through the MILES Program:
What happens when I separate from active duty? Your allotment will normally stop between 60-90 days prior to your expiration of active duty. Prior to it stopping, you should contact US Bank customer service to receive transitional counseling and enroll in an alternative payment means to protect your credit and the payment investment you have made. The US Bank customer service number is 1-800-872-2657. Please have your loan number available when contacting the bank.
- Used vehicles must have less than 65,000 miles.
- The vehicle cannot be more than 5 years old
- New vehicles may not be sold for more than the Manufacturers Suggested Retail Price (MSRP)
- A CARFAX or AutoCheck report is required for all used vehicles
- There is a 24 hour return policy on used vehicles
- High performance and sports vehicles are excluded from the MILES Program
Can I ship my vehicle overseas? To accommodate and reward service members with loans originated through the MILES Program, who have satisfactorily performed their loan obligations, US Bank may approve the overseas shipment of a vehicle, provided all of the following conditions are met:
- Vehicle shipped must be approved by the military and shipped at government expense.
- Service Member must provide the bank a copy of the permanent change of station (PCS) orders
- Loan must be current at time of the request, including any late charges outstanding
- Loan payment allotment must be in force and being received on a consistent basis
- Insurance for vehicle must be verified
- Service Member must pay an amount equal to one (1) monthly contract payment which shall be applied towards the principle balance of the loan
Will I qualify for the MILES Program? Will They Look at My Credit Score? Credit is a transaction in which a person receives merchandise, an automobile, money or services for little or no money up front, and promises to pay in a specified time period (term). How well, or not so well you pay for these items are the ingredients which determine your credit score. Your credit record means everything when it comes to borrowing money. Credit reporting agencies collect information about a person to build an individual's credit record. If you have a positive credit history, you have more options than the consumer with little or no credit or a poor credit record. For a bank or credit union to lend you money, they need to know how reliable you will be in repaying the loan. Lenders base their decision to lend money on several criteria; the most important of these is a credit score. A credit score takes into account the following factors:
- Past payment history
- Current amounts owed/outstanding debts
- Your length of credit history
- The number of recent new credit requests
- Types of credit used
You may have a low credit score and thus have trouble purchasing a vehicle at a fair price and with favorable financing terms if you have:
- No or poor credit
- Low credit score
- No co-signer
- Past bankruptcy or repossession
The good news, however, is sometimes these obstacles can be overcome. Some companies, such as MILES, specialize in helping you finance a vehicle despite your credit problems. Be prepared to pay a higher interest rate if you have any of these credit problems. Unfortunately, too many companies take advantage of individuals with past credit blemishes because these buyers feel they have no other alternative but to pay the extremely high interest rates or pay far more than the actual value of the vehicle.
I have a previous bankruptcy; can I still qualify for the MILES Program?
If you have a single bankruptcy and it has been discharged or dismissed, and you meet all of the other MILES criteria, you should qualify for the program. However, multiple bankruptcies, either filed or discharged is a disqualifier for the program.
I have a previous automobile repossession on my credit report; will this prevent me from utilizing the MILES Program?
As long as the original lien holder on the vehicle did not incur any loss from the repossession and your credit report shows the loan is paid in full, you may qualify for the program. Please contact the MILES Assistance Center at 1-866-466-4537 for further instructions.