How to Raise Credit Score for Military Personnel

Military personnel face credit score challenges other members of society do not. Frequent home base relocations and temporary duty assignments potentially result in a large number of credit relationships and lackluster credit history as bills get lost in the mail or military personnel fail to close credit accounts properly. These challenges, combined with less-than-ideal financial diligence, can lead to artificially deflated credit scores for some people in the military. Military personnel have the ability to raise their credit score by taking certain concrete steps.

Instructions

1

Obtain a copy of your credit report from each of the three main credit bureaus, and scour for errors. According to the Naval Criminal Investigative Service, military personnel are at increased risk of identity theft. Additionally, frequent relocation complicates credit reporting; regular review and correction of credit reports mitigates these problems.

2

Use electronic bill pay to simplify payment of bills. Regular relocations and temporary assignments wreak havoc on a military member's ability to receive all bills. Sign up for electronic bill pay, which will allow you to receive and remit bills anywhere in the world with only an Internet connection.

3

Resist the urge to frequently apply for credit at new duty stations. Credit inquiries and a large number of open accounts adversely affect credit scores. Establish credit with nationwide or multinational corporations to reduce the need to open new accounts after moving.

4

Pay all bills on time, every time, to increase a lagging credit score; late payments negatively affect credit scores. If necessary, set up automatic deductions from your military pay to creditors to ensure you remit payments promptly.

5

Reduce credit card balances. The Federal Reserve of the United States explains that credit utilization, or the ratio of your credit balances to your overall credit limit, factors into credit scores. Pay down credit cards as able, starting with the card charging the highest interest rate.

6

Visit on-base financial counselors. Most military bases employ financial counselors available to military personnel. Visit these counselors to create a household budget as well as a strategy to reduce debt burden and improve credit scores.

7

Establish additional credit history through the use of military loans or Department of Veterans Affairs (VA) mortgages. Military members enjoy increased access to credit from the VA (in the form of VA mortgages) and from financial institutions (in the form of military loans). Establish a credit history by opening accounts appropriate to your situation, then regularly paying on time.