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.


 
 

 
(U.S. Air Force photo by Staff Sgt. Ciara Gosier)

Historic fighter squadron celebrates 98th birthday

(U.S. Air Force photo by Staff Sgt. Ciara Gosier) Historic_Pict2 Caption: U.S. Air Force Airmen from the 94th Fighter Squadron and Aircraft Maintenance Unit pose for a photo at Langley Air Force Base, Va., Aug. 21, 2015. The ph...
 
 
WEBKeySpouse_pict

Key Spouse Program: Supporting the families and Airmen of 12th Air Force (Air Forces Southern)

Photo: KeySpouse_pict DAVIS-MONTHAN AFB, Ariz. — It is in the nature of military service that at some point you will be separated from the ones who love you. Often times a permanent change of station forces spouses and si...
 
 
(Courtesy photo)

SecAF, CSAF, CMSAF present new “little blue book”

(Courtesy photo) Caption: Chief Master Sgt. of the Air Force James A. Cody congratulates an Airman attending Airmen’s Week Aug. 27, at Joint Base San Antonio-Lackland, Texas. The Airmen received a copy of “America’...
 

 
af-uav4

Arming the RPAs

Air Force photograph by TSgt. Joseph Swafford A1C Matthew Lopez (center), 62nd Expeditionary Reconnaissance Squadron munitions systems technician, builds a GPS-guided GBU-49 bomb at Kandahar Airfield, Afghanistan, Aug. 15, 2015...
 
 
Photo: WoW_pict

Warfighter of the Week: Staff Sgt. Brad Johannes

Photo: WoW_pict Col. Robert Stonemark, 12th Air Force (Air Forces Southern) chief of staff, presents Staff Sgt. Brad Johannes, 12th AF (AFSOUTH) manager of engineering operations, with the Warfighter of the Week certificate dur...
 
 

Special tactics Airmen killed in hostile incident

Two special tactics airmen, who were deployed in support of Operation Freedom’s Sentinel, were killed near Camp Antonik, Afghanistan, Aug. 26. Capt. Matthew D. Roland, 27, and SSgt. Forrest B. Sibley, 31, were at a vehicle checkpoint when two individuals wearing Afghan National Defense and Security Forces uniforms opened fire on them. NATO service members...
 




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=""> <s> <strike> <strong>