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.


 
 

 
Courtesy Photo

Luke 1 holds first commander’s call

Courtesy Photo Brig. Gen. Scott Pleus, 56th Fighter Wing commander, begins his first commander’s call at Luke Air Force Base Monday. Pleus took command of the fighter wing June 20. Brig. Gen Scott Pleus, 56th Fighter Wing com...
 
 

Balance, key to successful AF life

I believe proper balance is the key to a successful life in the Air Force. Over the years I’ve come to realize that it takes a concentrated effort to maintain balance between a professional life as an Air Force member and personal or family life. Both require constant learning, adjustments, development and attention. It’s easy...
 
 

Avoid claustrophobic career

I have heard many times that education is the great equalizer. The Air Force takes in people of all races, cultures and backgrounds and unifies them under simple beliefs and values. The enlisted force structure serves as the common language for force development, and education plays a major role. We all know education creates opportunity,...
 

 
James Hensley

No one flies until flight med gives OK

James Hensley Airman 1st Class Shawn Martinez, 56th Aerospace Medicine Squadron flight medicine technician, checks over the ambulance Aug. 19 with Staff Sgt. Jovanny Reyes, 56th AMDS medical technician, at Luke Air Force Base. ...
 
 

News Briefs August 29, 2014

Gate hours change The South Gate Visitor Registration Center hours have changed. They are 6 a.m. to 4:30 p.m. Monday through Friday. Effective Tuesday, the North Gate is open inbound and outbound 6 a.m. to 6 p.m. Monday through Friday. Also on Tuesday, the Kachina Gate will open inbound and outbound 6 a.m. to 10...
 
 

THUNDERBOLT OF THE WEEK

Senior Airman Brian Comia 56th Force Support Squadron Services journeyman Hometown: San Lorenzo, California Years in service: Three Family: Wife, Phoebe; daughters, Sophia and Isabella Inspirations: My family Goals: My short-term goal is to make staff sergeant next year Greatest feat: Becoming a U.S. citizen and having the pleasure and honor of serving this country...
 




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