Your credit rating is important for a number of reasons. It affects the interest rate you will receive if you want to purchase a home, refinance your current mortgage loan, or finance a car purchase. Your credit rating can also affect your ability to rent a place to live, find employment, or buy insurance at a good rate.
Military servicemembers who have security clearances need to pay extra attention to their credit ratings. This also applies to civilians (including former military servicemembers) who need a security clearance for the contract work they do with the military or government.
Serious credit problems can result in:
To build and maintain a healthy credit rating, it is important to understand how credit functions and how it relates to your basic finances. You need to deal with your credit and any debts you take on in a responsible manner.
Protect your credit by taking the following steps:
It is important that you take your credit score seriously. Employ a balanced offensive and defensive strategy to protect and improve your credit. Practice good defense by dealing effectively with any debts or delinquent accounts. Practice good offense by developing and maintaining good financial habits.
Ethan Ewing manages Bills.com, a website business which provides practical financial advice and resources to everyday people. Prior to joining Bills.com, Ethan was a Vice President for Experian Interactive, a leader in online marketing and advertising, where he was responsible for developing online partnerships with many of the internet's largest properties. Ethan has also built a website business for Ameriquest Mortgage, managed a mortgage origination operation and consulted on secondary market bulk mortgage acquisitions. Ethan received his BA from Denison University, where he was a captain of the men's lacrosse team.
Bills.com's goal is to help Americans better manage their financial matters, with a focus on monthly budgeting and cutting expenses. Check out www.Bills.com/IQ to get your free BillsIQ score and find out how financially fit you are.
I regularly receiving letters from family members who are worried about their current or former servicemember. The military is confusing enough if you are in it, and it is more confusing for people who don’t have experience. Today’s letter is fairly typical: Perhaps you can help me. My son spent 6 years in the military [...]