How U.S. Military Service Members Can Access and Manage Credit Wisely

When you’re a U.S. service member, especially in the early stages of your career, the path to building strong financial habits can be rocky. There’s a lot on the line—deployments, relocations, and unique job pressures that make your financial situation different from civilians. Accessing credit is part of this journey, but it can quickly go wrong if you’re not prepared. This guide breaks down how to access and manage credit effectively so you can build a solid financial future without unnecessary debt.

Credit Basics You Need to Know

What Credit Really Means

Credit is simply borrowing money with a promise to repay it later. But here’s the catch: credit isn’t free. The terms attached to it—like interest rates, fees, and penalties—are what make or break the experience. Here are the main types:

• Revolving Credit: Credit cards are the most common. You borrow up to a limit and pay it back as you can. This flexibility makes it convenient but also dangerous if you’re not disciplined.
• Installment Credit: Loans for specific items (car loans, mortgages) fall here. You borrow a fixed amount and pay it back on a schedule, making it easier to plan.
• Open Credit: These are monthly expenses like utility bills that don’t carry over. Miss a payment, and it’s due in full next month.

How Credit Impacts Financial Health

Credit is a double-edged sword. It can give you access to more buying power and help build your credit history. But misuse leads to high-interest debt that can quickly spiral. Credit can help you buy a home, manage emergencies, or establish a solid financial base—but only if used right.

How to Access Credit as a Service Member

You’re not like the average consumer. You may relocate frequently, face deployment, or have an income profile that looks different from civilians. Here’s how you can navigate credit effectively.

1. Get Familiar with Your Credit Score

Your credit score is like a financial résumé—it gives lenders an idea of your reliability as a borrower. Scores usually range from 300 to 850, and factors that impact it include:

• Payment History (35%): Have you paid your bills on time?
• Credit Utilization (30%): How much of your available credit are you using?
• Length of Credit History (15%): How long have you been borrowing?
• Types of Credit (10%): The variety of accounts you have.
• New Credit Inquiries (10%): Each application for credit counts here.

Where to Check Your Score

Annualcreditreport.com lets you pull your credit report from the three major bureaus—Equifax, Experian, and TransUnion—once a year for free. This is your chance to spot errors or unauthorized activity that could harm your score.