Most
people who just join the military are in an enviable position
of having very little or no established credit. While this may seem
like a bad thing, it actually puts you in a great position to build
good credit. It is much easier to build good credit then it is to
repair it so now is the time to thoughtfully establish some and
maintain it to improve your credit rating. The military offers its
service people an advantage. Lenders like the fact that you will
have a guaranteed paycheck for four years and are more apt to
extend credit for the first time.
Debt Consolidation And Credit The first thing you should do is receive a copy of your credit
report. There are three primary credit bureaus, Experian, Trans
Union and Equifax that supply credit reports. It is advisable to
get a credit report from all three. You will then need to analyze
your report to see if it is accurate and what it says. If there are
items on there that you are unaware of, now is the time to clear it
up. With identity theft so prevalent today, even though you may not
have credit, someone else may have gotten something in your
name.
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Check Credit Rating Then, you will need to open a bank account. Navy Federal Credit
Union (http://www.navymoney.com), NFCU is a good place to start for
United States Navy service members. It is advisable to open both a
checking and savings account. This will show stability and allow
you to pay bills and function much easier. Deposit your paycheck
into your checking account and take a portion every pay period to
put into your savings account. Do not touch the money in your
savings account. Instead, let it grow and accumulate interest. Keep
an eye on your checking account and do not let the balance get too
low. Always balance it and make sure you do not bounce any
checks.
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Improve Credit Rating You will want to apply for a revolving charge account. Types of
credit that are good to get in the beginning are major credit cards
like MasterCard, Visa or Discover. These will allow a lower
interest rate and will help start you on a history of good
payments. The trick is to not charge more than you can afford to
pay off completely. Use the card for small purchases and pay the
majority off each month. However, do not always pay it off
entirely. You want to establish a good credit rating so be sure you
do not pay late. Not only will it increase your interest rate and
add finance charges but you will reduce your credit score.
Your credit profile is very important in determining whether or not an application for credit is accepted or declined. There are two methods below that can help you and our Guide (at the top of this page) provides a further insight into credit scoring. Understand your credit rating and help improve your ability to get credit with your Equifax Credit Rating.
Credit Online Rating Report Establishing good credit takes discipline, something you should
be familiar with in the military. Taking the time to build it now
will hold you in good stead throughout the years and will enable
you to get bigger loans when you need it. Eventually you will need
a car and a home. If you have good credit you will be able to get
approved for a loan more easily and get lower interest rates.
That's right. Not using credit is a mistake. The way the credit system works is that it rewards consumers who manage credit responsibly. The reward is in the form of easy access to credit at reasonable rates. If you choose not to use credit then you choose not to build a solid credit history, based on which future credit providers that you apply to for home or car finance will be able to assess your ability to repay them.
Credit Score Rating Scale NavyMoney.com gives those who are in the United States Navy
alternatives to Navy Federal Credit Union for building
credit.
• Because you often need credit to build credit, obtaining major credit cards can be tough. One option is to open a secured credit card account. A secured credit card requires you to deposit and maintain money in a savings account for security. The required deposit and APR vary by credit card company; interest rates can be anywhere from 10% to 25%.
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