Building Credit While in the Military

Most people who just join the military are in aninto your checking account and take a portion every
enviable position of having very little or no establishedpay period to put into your savings account. Do not
credit. While this may seem like a bad thing, it actuallytouch the money in your savings account. Instead, let
puts you in a great position to build good credit. It isit grow and accumulate interest. Keep an eye on
much easier to build good credit then it is to repair ityour checking account and do not let the balance get
so now is the time to thoughtfully establish some andtoo low. Always balance it and make sure you do not
maintain it to improve your credit rating. The militarybounce any checks.
offers its service people an advantage. Lenders likeYou will want to apply for a revolving charge
the fact that you will have a guaranteed paycheckaccount. Types of credit that are good to get in the
for four years and are more apt to extend credit forbeginning are major credit cards like MasterCard, Visa
the first time.or Discover. These will allow a lower interest rate and
The first thing you should do is receive a copy ofwill help start you on a history of good payments.
your credit report. There are three primary creditThe trick is to not charge more than you can afford
bureaus, Experian, Trans Union and Equifax thatto pay off completely. Use the card for small
supply credit reports. It is advisable to get a creditpurchases and pay the majority off each month.
report from all three. You will then need to analyzeHowever, do not always pay it off entirely. You
your report to see if it is accurate and what it says.want to establish a good credit rating so be sure you
If there are items on there that you are unaware of,do not pay late. Not only will it increase your interest
now is the time to clear it up. With identity theft sorate and add finance charges but you will reduce
prevalent today, even though you may not haveyour credit score.
credit, someone else may have gotten something inEstablishing good credit takes discipline, something
your name.you should be familiar with in the military. Taking the
Then, you will need to open a bank account. Navytime to build it now will hold you in good stead
Federal Credit Union, NFCU is a good place to startthroughout the years and will enable you to get
for United States Navy service members. It isbigger loans when you need it. Eventually you will
advisable to open both a checking and savingsneed a car and a home. If you have good credit you
account. This will show stability and allow you to paywill be able to get approved for a loan more easily
bills and function much easier. Deposit your paycheckand get lower interest rates.