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.


 
 

 

Things to know about gift cards

NELLIS AIR FORCE BASE, Nev. — Many gifts exchange hands during the holiday season. One of the most popular, easiest and convenient of gifts is the gift card. Almost every store offers gift cards for their products or services. Gift cards can satisfy even the most particular recipients since they choose what to purchase for themselves. However,...
 
 

Scholarships for Military Children

FORT LEE, Va. – As the Scholarships for Military Children Program enters its 15th year, more than 8,000 students have shared nearly $13 million in scholarships. Applications for the 2015-2016 school-year awards become available starting Dec. 15 at commissaries worldwide or on the Scholarships for Military Children website. As one of last year’s recipients said,...
 
 
(U.S. Air Force photo/Staff Sgt. Christopher Gross)

Airmen, families, friends remember loved ones at Arlington

ARLINGTON, Va. (AFNS) — Nearly 50,000 volunteers came together to place remembrance wreaths on the headstones of about 230,000 veterans during the 23rd Annual National Wreaths Across America Day Dec. 13, at Arlington Nati...
 

 

Eagle flies home: Airman receives a native name

MOODY AIR FORCE BASE, Ga. — The buildings looked the same and the people seemed familiar, but something was different. Maybe it was him. His Native American ties were lost at a young age and now nearly 20 years had passed since he reconnected with his roots. This piece of his life was broken until a naming...
 
 

Commissary Value Brands to return for more savings

FORT LEE, Va. – In response to growing patron demand for products comparable to the low-cost private label items sold in civilian stores, the Defense Commissary Agency is re-energizing an “old friend” known as Commissary Value Brand. Starting in December, commissaries worldwide will highlight about 300 Value Brand products in 33 categories such as frozen...
 
 

“Aiming High” and getting high not compatible for civilian, AF members

HILL AIR FORCE BASE, Utah, — Voters in Alaska, Oregon and Washington D.C., recently joined Colorado in legalizing the possession and use of marijuana. Apart from Oregon, each area has large Air Force populations. Leaders say it’s important for military and civilian Airmen to remember that while American voters’ attitudes are shifting toward loosening restrictions on marijuana,...
 




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