This story is provided and presented by our sponsor Pioneer Services, the military division of MidCountry Bank, which has provided financial services to the men and women of the Armed Forces for nearly 30 years. For more information, visit  PioneerServices.com

Some military families have had difficulty accessing traditional banking options due to financial constraints, lack of credit history, or a highly mobile lifestyle – and therefore, don't understand the many options available to them or know what to look for. Keep in mind that every borrower is different, so you will need to find the one that best fits your needs. Regardless, there are several key differences that you should take into consideration when choosing a lender.

Make sure the lender you choose…

  1. Checks credit reports and/or debt-to-income ratios. These are important, as the lender is gauging your ability to repay the debt. They do so not only to protect their bottom line, but to ensure you don’t take on more debt than you can handle.
  2. Adheres to protections provided in the Military Lending Act, including the MAPR cap and other requirements to ensure a loan is in the best interest of a service member.
  3. Is willing to assist both those with perfect and less than perfect credit. Some find that military life negatively impacts their credit scores, and are unable to access institutions that only loan to those with prime credit.
  4. Reports positive payment history. This is essential because credit scores are based upon paying debts in full and on time. Some lenders will only report missed or late payments, meaning you won’t get the rewards of a good payment history.
  5. Doesn’t require mandatory arbitration. Some lenders require you to agree to arbitration if you try taking them to court. And often, the lender gets to choose the arbitrator, meaning you have an uphill battle, so keep this in mind.
  6. Doesn’t have pre-payment penalties. You shouldn’t have to pay more for paying your bill early; you should be rewarded with a higher credit score and less debt.
  7. Loan satisfaction guarantee. A few lenders offer these, but many do not. Having a guarantee (and the ability to return the loan with no questions asked or to compare rates with other lenders) is a great way to make sure you are getting what’s best for you.
  8. Has some level of federal oversight. Knowing a bank is federally regulated can provide an additional level of protection, security, and comfort.
  9. Offers free financial education. A lender should be willing to help you better understand your finances. Doing so can give you the information you need to make smart financial decisions.
  10. Doesn’t require you to pay by allotment. You should be given multiple options and opportunities to pay your bill the way you want, not be forced into paying the way the lender wants you to.

This is not an all-inclusive list by any means, but it does cover several key differentiators borrowers should consider. Remember that there can be significant differences between banks, credit unions, and finance companies. So review the services and features each lender provides—that way you can make informed decisions and get the money you need without the headaches you don't.

©2015 Pioneer Services. No U.S. military endorsement is implied.