U.S.

August 16, 2012

Credit score: Good to have, use wisely

Airman 1st Class Grace Lee
56th Fighter Wing Public Affairs

LUKE AIR FORCE BASE, Ariz. — Having good credit can be beneficial in many ways, and when used correctly it can be an important tool to help pay for college, a new vehicle, furniture or a home.

According to Cory Carmichael, 56th Force Support Squadron Airman and Family Readiness Center community readiness specialist, credit is what permits one to borrow money in order to make purchases with the promise of repayment at a later time, usually with interest.

While it may be essential to have credit, it is even more important to have good credit.

“Good credit will almost always help you get lower interest rates for loans and credit cards, as well as large purchases like a car or home,” Carmichael said. “Many insurance companies use credit based insurance scores to determine policy premiums.”

For Maria Johnson, Credit Union West senior member service officer, credit is not only a score, but it’s one’s financial report card.

“Your credit score provides a lender a snapshot of where you stand,” she said. “This helps them determine how much they are willing to lend and at what interest rate. Additionally, credit allows individuals to save money, enjoy peace of mind, have negotiating power, avoid costly deposits, enjoy instant loan approvals and reach retirement goals faster.”

As good credit provides many benefits, having bad credit can have the opposite effect, leaving one paying higher interest rates.

“Those who don’t keep their promise to pay the creditors on time are a higher risk to default and will end up paying more for the privilege of using credit,” Carmichael said.

Having a poor credit history can also affect other important aspects of a person’s life, said Johnson.

“If you currently have a poor credit history you may lose a great job offer or even your base security clearance,” she said. “You may have trouble renting an apartment, getting a cell phone, and you may be denied auto or homeowners insurance or be charged a higher insurance premium.”

For those who want to build or rebuild their credit, Johnson recommends taking out a credit builder loan (signature loan) or a personal assistance loan.

“A credit builder loan is a short-term installment loan. It’s for those with no credit history or trying to rebuild credit,” Johnson said. “There is also a personal assistance loan, which is an unsecured fixed-rate, open-end loan. Both of these loan options report directly to the credit bureau.”

Carmichael recommends simply paying bills on time.

“The secret to having a great credit score is no longer a secret,” Carmichael said. “Pay all bills on time, and never skip a payment. Keep credit card balances low, or pay them in full and never exceed established credit limits.”

For more information about credit or other financial needs, the Luke Air Force Base A&FRC has resources available.

“We have trained financial counselors, publications, guides, classes and other resources to answer all your financial questions,” Carmichael said. “The A&FRC also provides one-on-one appointments to pull and evaluate credit reports and scores. Everyone is encouraged to order their free credit report online at www.annualcreditreport.com. Take the steps now to improve your financial fitness.”




All of this week's top headlines to your email every Friday.


 
 

 

Guard Muster brings Arizona together

(U.S. Army National Guard photo by Staff Sgt. Brian A. Barbour) Arizona National Guard Soldiers from the 158th Maneuver Enhancement Brigade stand in formation on the field at Arizona State University’s Sun Devil Stadium, Dec. 7 in Tempe. The formation, which was part of the Arizona National Guard Muster and Community Expo, was the first...
 
 
NORAD_pict

NORAD prepares to track Santa’s flight

PETERSON AIR FORCE BASE, Colo. (AFNS) — The North American Aerospace Defense Command’s NORAD Tracks Santa website, http://www.noradsanta.org, launched Dec. 1, featuring a mobile version, a holiday countdown, new games a...
 
 

Air Force not planning Involuntary Force Reductions in 2015

FORT GEORGE G. MEADE, Md. – The modern Air Force is “feeling some strain” recently, due to its shrinking size and high operations tempo, but there won’t be any more involuntary force-shaping in 2015, Secretary of the Air Force Deborah Lee James said today. James said she and Air Force Chief of Staff Gen. Mark...
 

 

Local Briefs December 19, 2014

NARFE chapter 55 to meet January 12, 11 a.m. – Golden Corral The National Active and Retired Federal Employees (NARFE) Association, Chapter 55, will hold their next monthly luncheon meeting on Monday January 12, 2015 at the Golden Corral, 4380 East 22nd Street, Tucson, AZ 85711.  The luncheon starts at 11 a.m. and ends about...
 
 

New Commander addresses Airmen of 12th Air Force

To all of the 12th Air Force Community, Happy Holidays! My wife Kristan, my three children, and I are excited to join this outstanding 12th AF community.  I cannot adequately express how honored and humbled I feel to join this community as the Commander.   I certainly appreciate the exceptional efforts of General and Mrs....
 
 
(AFSOUTH)

New commander to take reins of 12th AF, AFSOUTH

Twelfth Air Force and Air Forces Southern will welcome a new commander during a change of command ceremony Dec. 19 at 10 a.m. at Davis-Monthan Air Force Base. Major Gen. Chris Nowland will be promoted to the rank of lieutenant ...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin