Is the Career Stater Loan available for Warrant Officers?

FitnessSickness
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Is the Career Starter loan available to selected Warrant Officers who will be appointed to Warrant Officer 1 ?

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Answers (1)

Answers (1)

FitnessSickness,

The short answer to your question is Yes.  Warrant Officers are offered the Career Starter Loan.  All you need to provide is Military Status Verification and a copy of your appointment to Warrant Officer. 

 

Also, a big congratulation on your appointment; that is a huge achievement and thank you for serving your county.

 

The Career Starter Loan offers a great opportunity to get started off on the right foot financially at a low cost, relative to other sources.  Even so, it is a loan that you will have to pay back, so determine what amount, if any, is appropriate for you to borrow.

 

In general, total consumer debt payment should generally not exceed 20% of your after-tax income.  Before you sign for a loan, be sure you have a plan to put yourself on firm financial footing.  Consider the following steps:

  1. Assess your current situation to determine your available cash flow (create a budget if you do not already have one) and review your financial goals.
  2. Determine your current and future Debt to Income Ratio
    • Gather and review all statements for credit cards, personal loans, auto loans, student loans, and other consumer debt.  Consider keeping your consumer debt to income ratio below 20% of net pay without including BAH, BAS, and other special pays.
    • Using the Career Starter Loan to consolidate higher interest rate debt could benefit you by reducing your Consumer Debt to Income Ratio.
  3. Reviewing your overall insurance needs with a qualified professional is one of the main ways to protect yourself and your family.  We do not recommend using loan proceeds to pay insurance premiums.  Make those payments out of your daily budget.
  4. Don't borrow more than you need and be sure you're financially healthy before using the money for discretionary items: Consider the following steps:
    • Establish an Emergency Fund based on your income as a Warrant Officer.  Strive for a goal of 3-6 months of essential living expenses.
    • Consider paying off existing consumer debt with interest rates that are higher than the Career Starter Loan
    • If you need to purchase a vehicle, stay within reasonable guidelines for your new income

 

Finally, if you have any questions, remember that USAA Financial Advisors are always here to discuss advice and planning to see how you can best use this loan to achieve your goals and objectives.