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

Airmen reach terminal velocity

Courtesy photo Second Lt. Tanya Wren, 56th Fighter Wing Public Affairs Community Relations chief, takes in the expansive view after the chute was pulled at 3,000 feet. Luke Air Force Base Airmen were chosen to tandem jump with ...
 
 

Planning for your future equals success

“If you can imagine it, you can achieve it. If you can dream it, you can become it.” ~ William Arthur Ward Success does not happen accidentally, it takes detailed planning and a vision of the future. I remember the day before I left for basic military training, I tried to imagine what my future...
 
 

Tuition assistance — a great benefit

In my opinion, tuition assistance is one of the best benefits that we as active-duty military members have available. During my 17 years in the Air Force, I have seen this benefit increase from 75 percent of tuition being paid to 100 percent. Additionally, most of us experienced this benefit being eliminated for a short...
 

 
Senior Airman Marcy Copeland

Military children celebrated for courage, resilience

Senior Airman Marcy Copeland Col. Jeremy Sloane, 56th Fighter Wing vice commander, signs the Month of the Military Child proclamation April 1 at the Luke Air Force Base Child Development Center. The Month of the Military Child ...
 
 

News Briefs April 17, 2015

LOSC The Luke Officers Spouses Club invites spouses of officers to play bingo and have lunch at 11 a.m. Tuesday at Club Five Six. For more information or to RSVP, go to LukeOSCReservations@gmail.com. Days of Remembrance There will be a Holocaust remembrance ceremony at 10 a.m. April 30 in the Luke Air Force Base Chapel...
 
 

Salutes and Awards

Air Force Reserve Command announces major selects The following 944th Fighter Wing captains have been selected for promotion to major: 944th Fighter Wing Christopher Bisdnack 307th Fighter Squadron Jason Gentry 944th Force Support Squadron Derrick Young 944th Medical Squadron Jeffrey Cohen and Craig Lussier 46 graduate ALS class 15-3 The 56th Fighter Wing Airman Leadership...
 




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