by Jeremy Horelick, ArticleInsider.com

If your credit history is marred by late payments and ballooning debt, and you're an active or retired member of the service, you're eligible for military computer financing. You don't have to be on a Special Ops team or parachuting out of planes over Iraq to qualify for a payment plan on a desktop or laptop. If you're anywhere from E-1 (Private) to O-9 (Lieutenant General), fill out an online application, and as soon as it's processed and reviewed you'll receive a contract.

Once you've reviewed the terms and rates of the agreement, just send it back through the mail--most companies need signed hard copies of the contract--and within a few days your computer will be on its way to your door. There's no long, drawn-out approval process, no letters of recommendation, and no attorneys, all of which means no headaches for you. All of these factors make military computer financing a superior choice--certainly much better than leafing through countless catalogs looking at models and accessories you can't buy.

This Is Too Good To Be True!
If you've just read that you can purchase a computer based on your military status alone and think this sounds suspicious, consider this as well: you're not buying a reconfigured or outdated machine. Military computer financing lets you own a brand new computer with all the peripherals, including mice, printers, and drives, for no money down. If that sounds even more dubious than before, never fear, there's a perfectly good explanation for everything.

Men and women in the armed forces don't simply receive a free pass in the credit world. While there are military mortgages, phone calling plans, and other discounts out there, none of these things will compensate for a truly horrid credit history. It would be great if banks and other lending institutions cut us all breaks for the various sacrifices we've made in our lives, but then most lenders would be out of business. So how does military computer financing work?

The Secret to Military Computer Financing
When you fill out your online forms, you're still just applying for a loan the way thousands of "civilian" Americans do each day. The difference is, in some cases lenders are willing to take a gamble by offering low interest rates to those who've served (or are serving) their country. The rationale for this can change from lender to lender, but there are a few reasons some companies are willing to do this.

One is that their business model is scalable. Even if computer financing companies only make one- or two-percent interest on their loans, if enough borrowers come to them, the sheer volume is enough to offset the low return. Another reason for this seemingly unsound business strategy is the "loss leader" principle. This is the (proven) idea that a long-term gain justifies a short-term loss. In other words, if a computer company knows a buyer will come back for a full-price computer once his or her credit is strong, it's worth luring that customer in now and establishing a relationship.

Nobler Reasons for Military Computer Financing
Not all business decisions are made solely on a bottom-line basis. Some companies are just proud of the job their country's young men and women are doing both here and abroad and want to reward their bravery. This is arguably the most dangerous time in our country's (and world's) history to join the armed forces. Even reserves now stand a decent chance of being called up and shipped out to fight. Military loans are just a small way for some businesses to show their gratitude.