Four Steps to Maintaining Military Creditworthiness

Knowing your creditworthiness is a major step to improving your personal military financial situation. Yet far too many soldiers remain in the dark when it comes to their creditworthiness.

It's no wonder; it can be hard enough managing the challenges of your military lifestyle which can include frequent PCS orders or deployments, and just staying focused on the life and death missions you are engaged in.

Still, even while you're deployed protecting your country, what you don't know can hurting you here at home.

Your credit scores impact everything from the interest rates you pay for loans, to even your ability to move up in your military career and pay grade.

Make a habit of maintaining these Four Simple Steps To Maintaining Your Creditworthiness.

STEP 1. GET YOUR FREE CREDIT REPORT

Under the Fair and Accurate Credit Transactions Act (FACT Act), consumers are entitled to a free credit report from each of the three credit reporting agencies - Equifax, Experian, and TransUnion - once every 12 months. The three nationwide credit reporting agencies operate a single website, AnnualCreditReport.com, which is the only authorized online source for free credit reports.

STEP 2: AVOID IDENTITY THEFT

An important way to protect against identity theft is to check your credit report periodically. You can request a free annual report from all three credit reporting agencies at the same time or stagger them throughout the year.

STEP 3: CORRECT CREDIT REPORT MISTAKES

A report by U.S. PIRG found that one out of four credit reports contains a serious error that can adversely impact your credit. Look for evidence of identity theft or activity that is not yours. To correct errors on your credit reports, contact the credit reporting agencies in writing and provide copies of the documents to support your assertion. Credit reporting agencies must investigate claims

STEP 4: DEAL WITH NEGATIVE CREDIT

Negative information on your credit report that is accurate can only be removed with the passage of time. Credit delinquencies will stay on your credit report for seven years and bankruptcy information will stay on your credit report for 10 years. Be patient and maintain good credit meanwhile.