U.S.

August 10, 2012

Credit score: Good to have, use wisely

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

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.


 
 

 
NEW_1

Luke F-35s visit Columbus AFB

Airman 1st Class Daniel Lile A T-6 Texan II roars overhead as the pilots of two Luke Air Force Base F-35 Lightning IIs prepare to exit their aircraft July 23 at Columbus Air Force Base, Mississippi. The pilots are Capt. Nichola...
 
 

Gillespie Loop: Honors Airman who made ultimate sacrifice

BAGRAM AIR FIELD, Afghanistan — The men and women of the 455th Air Expeditionary Wing came together for a road dedication ceremony to honor Master Sgt. Randy Gillespie, a fallen Airman who paid the ultimate sacrifice. Master Sgt. Randy Gillespie was a career fuels specialist who died July 9, 2007, from wounds sustained during small...
 
 

Who’s afraid of a little blood?

I have been in the Air Force for 22 years and have been a medical laboratory technician since the beginning of my career. The medical or clinical laboratory is where specimens are tested to provide information to medical providers who directly assist in the diagnosis, treatment and prevention of disease in patients. After graduating basic...
 

 

Pursue education for career’s sake

Everyone knows education can be a good bullet on an enlisted performance report, but few know the true value of an education in regard to a military career. The pursuit of an education can be just as valuable as the degree acquired at the end. The knowledge acquired in the pursuit of an education can...
 
 
Pg-3--photo-illustration

Candid money talk improves relationship

There are many reasons why people divorce but at the top of the list are lack of communication and finances. That’s why it’s important to combine these two topics to make for a successful long-lasting relationship. “I bel...
 
 

News Briefs July 31, 2015

Total body conditioning class A new total body conditioning class is 6:30 and 9 a.m. Monday and Wednesday. The 6:30 a.m. class is broken into two half hour segments to accommodate squadron or individual physical training. The 9 a.m. class is one hour. The class consists of body weight movements and the use of equipment...
 




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>