Subdivision and Installment Loans for Federal and US Employees

Housing loans make it easier for federal government employees and USPS postal workers to borrow money. Lenders are more likely to approve your application when you repay them first – automatically.

In addition, your work and your future salary are much more reliable compared to the average candidate! Creditors like to see a stable and reliable income stream and job security.

Installment loans allow public service workers and letter carriers with bad credit history to repay the bank in equal monthly installments. Payments over time facilitate emergency expenses.

However, laws in your country of residence or work may limit your choices.

Loans for bad credit of federal and US employees

Loans for bad credit of federal and US employees

Loans for federal government and USPS employees with bad credit often include payroll deduction or other means of automatic repayment. Borrowers with low FICO scores and unfavorable payment history must compensate in one way or another.

Apply for a personal loan here. Making sure the lender will be the first to repay is a way to make up for poor history or a low score. Current account and payroll assignments help achieve this goal. However, expect higher borrowing costs to offset the additional risk.

  • Higher interest rates
  • Biggest origination fee

Installment loans

Installment loans for federal employees and postal workers are typical of borrowers with bad credit. Installment contracts are closed. Closing means that the contract has a specific repayment term with fixed periodic payments.

Installment loans come in many forms, but only those with very short repayment terms are suitable for bad credit borrowers. Short-term conditions limit the risks for lenders.

Installment contracts can be an expensive way to borrow money. First, interest rates are very high. Secondly, origination fees significantly increase borrowing costs, especially for those who can not repay the full balance on time.

Payday loans

Payday loans are installment contracts for federal employees and postal employees with the most adverse credit ratings. The repayment period for payroll contracts is 2 weeks (bi-weekly pay), making it the last resort in real emergencies, such as car repairs, medical bills and court fees.

Most payday loans do not bear interest, but include origination fees. Borrowers find themselves in a delicate situation by postponing the obligation in the next pay cycle, and so on. Origination fees add up quickly when you do not pay the full balance in 2 weeks.

As a result, regulators refer to payday loans as “predators”. Of course, this is only true if the lender uses unfair, deceptive or fraudulent practices. Therefore, read your contract carefully.

Employee Loans – Pay Allotment

Employee Loans - Pay Allotment

Wage allocation loans to federal and USPS employees provide for the reimbursement of the autopilot. Lenders are more willing to approve applicants when the funds are mechanically withdrawn from an account. The money goes to the bank before you touch your wallet, where anything can happen.

Apply for a personal loan here. The lenders of this channel rely on an automatic deduction from your current account rather than a payroll allowance. Using a current account gives you access to a much larger network of businesses that can approve your application.

No credit check

Distribution loans for federal and USPS employees rarely have any credit checks. The purported lenders had no appeal to sub-prime borrowers who can not get approval from finance companies or high-end banks.

Expect the lender to use other sources and focus on income and affordability instead of a credit check.

  1. Alternative sources: The company can retrieve a consumer report from a non-traditional source (not Experian, Equifax or TransUnion) or use an alternative score (neither FICO nor Vantage) to evaluate your request.
  2. Income and Affordability: The company can review your monthly income against your monthly debt service obligations to verify that you can afford the periodic payment.

The automatic deduction of your salary allows the banks to approve candidates without verification of their solvency. Think of it as an important tie-breaker if you have an adverse payment history.

Payroll deduction

Federal employees and postal employees can benefit from three types of allowance loans through an automatic deduction. Choose carefully because each option has different advantages and disadvantages. Read the terms and conditions carefully before pressing an online submit button.

  • Discretionary Pay Allocations allow you to start, stop, or adjust the automatic payment at any time. People usually make rents and other periodic payments using this method.
  • Non-discretionary pay allotments can not be stopped or changed once started. In this way, people pay child support and spousal support and other court ordered payments.
  • Bank account allowances take money directly from a current account powered by automatic deposit. A wider range of lenders supports this method – increasing your options.

Government employees

Federal government employees can access the most favorable terms on average (interest rates, origination fees and discretionary deductions). Your future income and job security are much better compared to the typical borrower.

  • Future revenues are stable because the government can print money and rarely fires workers when economic conditions falter
  • Job security is optimal because federal workplace rules make it very difficult to dismiss staff in the event of poor performance.

Banks like to have a stable income and a safe job. Log in to your PayCenter to set up the allotment or arrange an automatic deduction from your current account.

USPS postal employees

USPS postal employees can also access allocation credits but on less favorable terms on average (interest rate, origination fees and non-discretionary deductions). Postal workers enjoy less income and more job security compared

  • USPS has been losing money for years and as a result, is downsizing. Layoffs have become more common as the market moves towards alternative delivery methods.
  • Letter Carriers perform tasks that result in accidents and injuries. Loss of income during a temporary disability makes it difficult to keep bills up to date.

Lenders are more cautious about approving postal candidates for these reasons. Consider these factors when configuring the allotment via PostalEase or your current account.

State regulations

It is more difficult to obtain salary allowance loans for federal and postal positions in some regions. Many states impose legal restrictions on low-value loans, while others allow consumers to choose for themselves. For example, compare rules and availability between Georgia and Texas.


Loans to federal officials and USPS employees are very rare in Georgia. Georgia has two restrictive laws designed to protect consumers from low-cost “predatory” lending practices. However, regulations also limit access.

  1. The Law on Industrial Loans in Georgia prohibits the loan of 3,000 euros or less, unless the company meets certain exceptions.
  2. The 2004 Law on Payday Loans in 2004 (the “Georgia Law”) criminalizes the fact that lenders violate State-imposed wear limits

Georgia is home to 72,000 civilian workers employed in the Air Force, Army and Veterans Departments, as well as in the Centers for Disease Control and Prevention. Because of these laws, only those with first-class credit ratings will meet the underwriting criteria.


Allowance loans for federal employees and postal workers are much more abundant in Texas. Texas regulators, on the other hand, take a “no interventionist” approach and impose fewer legal restrictions on small remittance lenders.

Texas is home to more than 2 million civilians working in the departments of Veterans Affairs, Army, Navy, Air Force, Defense, Agriculture, Internal Revenue Service and many others. Candidates should do their homework and read the terms and conditions before establishing a payroll deduction.