Credit scores represent, in theory, your creditworthiness -- the likelihood that you will pay your debt. And the likelihood that you will get the best interest rates and the maximum amounts on loans you need and want for cars, small businesses, and more.
Before they were famous, many truly influential men and women started by serving their country in the US military or grew up in military families.

What's Beyond Your Credit Report?

Posted:

Credit scores represent, in theory, your creditworthiness -- the likelihood that you will pay your debt. And the likelihood that you will get the best interest rates and the maximum amounts on loans you need and want for cars, small businesses, and more.

According to the Consumer Financial Protection Bureau and the Census Bureau, despite about $2 trillion worth of credit card transactions running through the American banking system, only about 16 million people a year, out of about 183 million credit cardholders in the U.S. request a free annual credit report directly from the three nationwide credit reporting agencies.

But you're military; you know the importance of staying on top of things. So you do review your credit report twice annually.

But even if you see your credit report regularly, many of the credit scores calculated for and used by lenders are not available to you.

Those credit scores are likely to vary based on different scoring methods and differences in the data as well as individual lender criteria.

Consumers unaware of the variance in credit scoring among lenders may view their credit reports and see a score believing it is their "true" score when in reality, the score their lenders are seeing is quite different.

Lenders use some different criteria when it comes to determining the likelihood that you will pay your debt. It's hard to say exactly how different lenders will "weight" different criteria, but here are some tips to help you maintain the kind of higher credit score that lenders will like:

DON'T CONSOLIDATE YOUR DEBT

Think carefully before consolidating high credit card debt through a second mortgage or home equity line of credit because most credit card debt is considered "unsecured debt" while mortgages and home equity loans are "secured debts" that require you to put up your home as collateral. If you cannot make the payments on secured loans, you could lose your home.

DO GET CREDIT COUNSELING

Don't wait til you're already in trouble. If you see yourself headed towards credit problems, consider contacting a reputable credit counseling organization such as one offered by a university, military base, housing authority, or branches of the U.S. Cooperative Extension Service.



RELATED ARTICLES:


Sponsor:

VA Loans for Veterans
Complimentary VA loan pre-approvals will give you the comfort you need to shop for your home with confidence. VA refinance loans available.


VA Home Loans

Military Hub is not a government website and is not affilitated with any branch of the U.S. Military.


Support Our Troops:

Semper Fi Fund
The Semper Fi Fund provides financial assistance and support to service members and their families.
IAVA - Iraq and Afghanistan Veterans of America
IAVA is the nation's largest nonprofit, nonpartisan organization representing veterans and their families.
Team Rubicon
Team Rubicon unites the skills and experiences of military veterans with first responders.
Pat Tillman Foundation
The Pat Tillman Foundation invests in military veterans and their spouses through educational scholarships.

About Military Hub
Privacy Policy
Contact / Advertise

Copyright © 2008 - 2017
Advertise Military, LLC
All Rights Reserved

Disclaimer: MilitaryHub.com and MilitaryRates.com are private websites that are not affiliated with the U.S. Department of Veteran Affairs, any U.S. government agencies, or any U.S. military branches. Our sites contain basic information about veteran benefits, pay tables, current events, and news for active duty military personnel, military veterans, and their families. You can find additional information on these topics at the official website for U.S. Department of Veteran Affairs.