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.


 
 

 
Pg-1-photo-150612-F-EC705-058

Emerald Knights go out with bang

Emerald Knights watch a burning piano during the 308th Fighter Squadron inactivation party June 12 at Luke Air Force Base. The 308th FS and aircraft maintenance unit have packed up and are transitioning to the 314th FS standing...
 
 
2_lemery_d2

Respect — want, earn, give, but don’t lose it

Lt. Col. David Lemery We all want it, some earn it, some are given it and some lose it. Respect can be defined as a feeling of deep admiration for someone or something elicited by their abilities, qualities or achievements. As ...
 
 

Solve problems at lowest level

Crucial in our Air Force environment today is having the proper tools and skillsets available to deal with problems. There is literally something new almost every single day that will invoke problem solving skills. When faced with a problem, an important mindset to have is to resolve the issue at the lowest possible level. Some...
 

 

News Briefs June 26, 2015

607th ACS change of command Lt. Col. Charles Jones will relinquish command of the 607th Air Control Squadron to Lt. Col. Jerald Canny in a ceremony at 8 a.m. Wednesday in Hangar 999.   CMS change of command Maj. Scott Hall will relinquish command of the 56th Component Maintenance Squadron to Maj. Anthony Sutton in...
 
 

Fighting Falcons arrive at Holloman

Courtesy photo Six F-16 Fighting Falcons from the 308th Fighter Squadron at Luke Air Force Base arrive in formation June 16 at Holloman Air Force Base, New Mexico. The 308th FS has inactivated and the soon to be activated 314th FS assumes the 308th FS mission of training F-16 pilots as a 56th Fighter Wing...
 
 
5_Courtesy-photo

Monsoon season blows in storms, rain, dust

Courtesy photo Arizona is known for being sunny with clear skies for the majority of the year, but every year “it” happens. As the clouds roll in, the sky darkens with thunderbolts streaming overhead, and the first drops of...
 




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>