When you contrast those days records and scores, another source opening new accounts over time
with the easy availability of credit of information and credit reports is demonstrates responsible credit use.
during the past 15 years or so, the myFICO at
www.myfi
co.com. (The A high credit score indicates you
current economic slump seems a credit score, sometimes known as a are a good credit risk. With a high
bit overdue. Our nation lost respect “FICO score,” originated at the Fair score you are more likely to be ex-
for credit and the responsibility it Isaac Corp., hence “FICO.”) tended credit with better interest
demands. We were buying on credit You can contact any of these com- rates. People with lower credit scores
what we wouldn’t be able to afford — panies to get a copy of your credit are more likely to be turned down
or should have bought — with cash. report. All consumers are allotted for credit and, if approved, often pay
We believed our home equity was one free credit report each year from higher interest rates to compensate
an entitlement to be spent. This un- each of the three credit bureaus. the merchant for assuming more
checked overspending drove demand You’ll usually be charged a fee for risk. Shoot for a credit score of 720.
and supplies of goods and services to additional requests. This puts you in the top group. If you
levels that couldn’t be maintained. are below 700, you should work on
Not surprisingly, many people saw Your credit score improving your record.
their credit scores — those all- As you build your credit record, you Follow these tips to build, man-
important indicators of past and build a credit score, too. This number age, improve, and protect your
anticipated credit maturity — drop in between 300 and 850 depends on: credit record:
response to this behavior. a73 payment history: Timeliness and a73 Pay off balances each month. Man-
Well, credit is going old-school consistency in bill payment is the age and record monthly expenses by
again, which means your credit primary factor in your credit rating. charging only what you can afford to
score is more important than ever. a73 amount owed: This measures the pay the next month. This is the best
Let’s start with the fundamentals to amount of credit available versus way to use your credit, because you
bring us all up to speed on the new how much of it you actually use. are managing on a cash basis while
(old) credit environment. Maxing out your available credit is building a good credit record.
bad. The less used, the better. a73 Pay your bills before they are due.
Your credit record a73 credit history length: Longer re- If you can’t pay your cards off each
Your credit record is a history of all cords provide greater reliability in month, at least pay your bills with
your credit accounts and how you determining your credit history. plenty of lead time. A quick way
manage those accounts. Three major a73 variety of credit: Diversity among to get into credit trouble is to pay
credit bureaus collect, record, and the types of credit used usually is bills after they are due. Don’t put
report your credit record to mer- positive. You want to build a report yourself in the position of having to
chants when you request the use of different types of credit with dif- say, “The check’s in the mail.” Never
of credit: TransUnion (
www.trans ferent companies to establish a di- skip a payment.
union.com, (800) 888-4213), Equifax verse payment record.
(
www.equifax.com, (800) 685-1111), a73 new credit accounts: Keep your
DIGITAL EXCLUSIVE
and Experian (
www.experian.com, open accounts limited to the ones
a73 Click here to learn more about
(888) 397-3742). you need for legitimate reasons.
managing your finances and
Besides going directly to the Hyperactively opening accounts
get additional MOAA financial
credit bureaus to access your credit could signal a problem, whereas
resources.
6 0 M I L I T A R Y O F F I C E R D E C E M B E R 2 0 0 9
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92