MARINE CORPS BASE CAMP PENDLETON, Calif. -- “I have three questions for you: Who do you work for, who do you bank with and how much money do you want,” said Jason, the manager for The Money Guy, a payday lending company located on Coast Highway in Oceanside. 

Each year many service members find themselves entangled with excessive amounts of debt and with little or no means to pay off substantial amounts. Many military members at Camp Pendleton find themselves faced with difficult situations and low credit scores that limit their options.

Choices for the military member often become sparse when unexpected circumstances occur.

Take, for instance, a junior Marine who has a credit score of 500 and gets involved in an automobile accident. His alternatives diminish when it comes to getting money for auto repairs, because he won’t be able to get a loan from many financial institutions.

“You can’t get a standard loan at our bank unless you have a credit score of at least 640,” said a financial service representative for a local credit union. “You can still apply for a loan, but it probably won’t be approved.”

Many credit card companies and some banks offer ways for people with low credit scores to receive money, but the interest rates are usually above 25 percent.

“You can get high-risk loans from some of our competitor banks, but the interest rates are going to be really high,” Ross said. “If you have a 500 credit score, you are going to need a co-signer.”

A cosigner offers a way for someone to get a loan by agreeing to take financial responsibility if the party receiving the loan fails to pay the bank back. 

Many payday lending companies located near Pendleton are willing to give someone with a low credit score the money they want, but with a few stipulations. You will pay almost double the amount you borrow from these lending companies. They take their money directly from your account after you get paid, and your debt continues to climb.

According the California Reinvestment Coalition, nearly 68 percent of payday loan companies don’t allow extensions on their loans, and most charge at least 460 percent. Some soar as high as 2,147 percent. 

“I don’t care what your credit score is,” said Jason. “I’m a nice guy and I’m just here to help out people like you who have unfortunate problems.”

If a Marine fails to repay the lenders within the time limitations of the contract, this will harm their credit score. 

“We simply contact the authorities and collection agencies if you can’t pay off your loan,” said Jason.

Many payday lending companies offer an easy way for Marines to receive money, but the alternatives to using their services allow the Marine’s credit score and financial stability to return to a normal state. 

“The best thing for you to do is improve your credit score starting today,” Ross said. “Seek a financial counselor immediately and begin working on a long-term plan to keep yourself out of debt.”

The Navy-Marine Corps Relief Society offers grants and loans for Marines facing emergency situations. They also help Marines who need financial assistance. They offer grants for emergency vehicle situations and provide financial counseling services. 

Active duty military members can now receive high-risk loans from Pacific Marine Credit Union at a 24 percent interest rate.

A minimal payment plan is offered where the service member pays $50 dollars per month until the loan is paid off. This option helps improve a credit score by establishing a continual payment plan and allows the credit union to make future loans to the Marine. 

Marines can visit Pacific Marine Credit Union on base or navigate to www.pmcu.com.

“Credit is a necessary thing, and you must be able to develop it over time,” said Bradley A. Smith, vice president of strategic development, Pacific Marine Credit Union.

For more information, visit the Navy-Marine Corps Relief Society’s Web site at www.nmcrs.org, or call (760) 725-5337.