How to Save Your Credit Rating in the Military

Military members, dependents, and military spouses are especially vulnerable to credit problems like identity theft, the potential for lost or stolen cards and personal information, and many other problems.

Fortunately, there are steps you can take to save your credit rating even if you are compromised, miss a payment, or have related issues. Credit and credit ratings are tricky but there are some very simple steps you can take that directly safeguard your credit.

It is very important to stress that these are steps all consumers should take themselves. Fixing your credit is FREE and you do not need to pay a third party to help you take the simple credit repair steps below.

Save Your Credit Rating by Knowing Your Credit Reports

First and foremost, reviewing copies of your credit reports regularly protects you from being the victim of identity theft, and to make certain there are no outdated items on your report, errors, etc.

For added protection, know the contents of your credit reports and follow the five tips below. It is that simple.

Tip #1: Add Some Credit

Some credit users don’t have enough credit to their name–they simply don’t have enough of a credit track record to show a lender they are a good credit risk. Other credit users may have a few credit cards but carry high balances. In both cases, adding a credit account may be a good idea.

It’s never a good plan to apply for new credit just ahead of or during a major credit application. Adding a credit account is something that should be done in the planning stages for a new mortgage or car loan, a year before or more is ideal.

The credit agency Experian says on its official site that consumers can legally improve their credit utilization rate by “raising your credit limit on an existing account or opening a new credit account”.

Credit utilization rates are calculated based on all your available accounts. If you have five credit accounts and carry a balance of 50% on each account, adding a new one or increasing the credit limit on an existing account affects the calculation, lowering the utilization rate. This may sound like a bit of creative accounting, but the math and the rationale can definitely help you improve your credit.

Tip #2: Create An Emergency Fund

One of the biggest sources of stress is last-minute expenses that force you to dip into your bank account, potentially affecting your monthly budget.

This can be a serious issue, which is why it’s best to establish a separate bank account and fund for such emergencies when considering Tip #5.

It can be tough to do this in the middle of a typical military assignment. For example, when military members get PCS orders, they have the ability to request advance pay (basically an interest-free pay advance that is repaid in monthly installments over a year) and set up as a small fund for this purpose.

You can do the same thing with a reenlistment bonus, special pays or allowances, etc. The key is to pay attention to times when you may be due extra money from the Department of Defense and plan accordingly (e.g., annual clothing allowance.)

Tip #3: Get Help

Military bases, college campuses, and even lenders may offer classes and seminars on improving credit, becoming ready for a home loan, saving money, budgeting, and other key areas.

If you are living on-base overseas, find your nearest MWR program, Soldier Support Centers, and the USO for potential financial resources.

Your city and state government may have stateside programs open to first-time home buyers, new investors, and other categories of people hoping to learn better money management, credit repair, and investing skills.

A financial planner, tax expert, or investment advisor may be able to help you find or use resources in your local area to get more informed on good credit practices and how to repair your credit yourself and for free.

Tip #4: Reduce Your Credit Card Balances

Your credit report has a ton of useful information: lenders, X number of credit cards and other accounts. It also shows what your credit limits are, and the percentage of used credit limit.

Lenders often look at the borrower’s used credit lines before approving new lines of credit or loans. Ideally, you should reduce your credit card use so that you are well under 50% of your credit limit. As a general rule, 30% is the maximum, but it’s best to reduce the amount halfway below your credit amount.

That will still help improve your credit over time. Carrying high balances on your credit cards does not help you when applying for an auto loan or a VA mortgage.

The credit utilization rate, which calculates the percentage of your credit use across all accounts, is used to determine your credit. If you have three credit cards, your credit utilization rate may be high if there are higher balances.

However, the credit reporting agency, Experian, reports you can change that ratio in a very simple way.

Advanced Tip

Before applying for credit, a va loan etc., make a payment to your account before your card’s statement closing date, instead of on or before its payment due date. Card issuer’s typically report the statement closing date balance to the credit bureaus on the statement date. Thus, even if you pay off your credit balance before the due date your credit report may still show a balance which will effect the utilization percentage used to calculate your credit score.

Tip #5: Set A Payment Schedule

Among the top three causes of bad credit scores, late and missed payments are serious issues. If you have missed or late payments on your credit record in the 12 months leading up to a major credit application like a VA mortgage or an auto loan, your chances at loan approval are seriously compromised.

Do not apply for loans if you have late and missed payments in that 12 months, wait out your payment record until you have a full 12 months of “clean” payment record on the books for best results.

The best way to achieve a clean payment record? Military members, dependents, and spouses should set up auto-deduct payments, ACH transfers, allotments, or any other automated payment process to handle your accounts each month on-time every time.

Military Discounts: Automotive Discounts

2020 veterans and military discount list of hundreds of companies that offer military discounts to service members, retired military, veterans, spouses and their families.

Advance Auto Parts
10% off regularly priced items for in-store purchases to customers who serve or have served our country’s Armed Services with ID.

Anthem Wheels
15% discount on any set of regularly priced Anthem wheels including any applicable custom drill fees for US Armed Forces: Active Duty, Veterans, Disabled, and Retired.

Audi of America
Get special offers and benefits exclusively available to overseas US military personnel via Audi’s Military Sales Program. Visit their website for more info.

Auto Accessories Garage
Men and women of our armed forces get discounts of 5% – 20% not offered to the public.

BMW
Military members and their families living in the U.S. may be eligible for a special rate for an auto lease or purchase. Contact the dealer for more details.

CARiD
Active Duty members, Reserves, Veterans and Retirees – including their immediate families – of the U.S. Air Force, Army, Coast Guard, Marine Corps, Navy, and National Guard receive a discount.

CarParts.com
All active duty military members, reserves, retirees and veterans of the United States Armed Forces are eligible for a 5% discount on all products when an active duty military address or copy of a DD Form 214 is provided.

Chrysler
Get exclusive rebates and affordable financing deals on Chrysler, Dodge, Jeep and Ram vehicles through the Chrysler Military Program. Applies to Active Duty, Active Reserved, Retired Military, Retired Military Reserve and Veterans.

Ford
Active Military Personnel & Reservists Serving on Active Duty, Veterans separated within the last 180 days, Retirees, Spouse/Surviving spouse, or other household members are eligible for a $500.00 Bonus Cash Offer good toward the purchase or lease of an eligible new recent model year Ford vehicle.

General Motors
Active Duty members, reserves and retirees, including their spouses, of the U.S. Air Force, Army, Navy, Marines, National Guard and Coast Guard can save hundreds or even thousands of dollars when purchasing eligible Chevrolet, Buick or GMC vehicles through the GM Military Discount program. There are also regional and dealership incentives available.

Goodyear Tire
Military members and first responders receive 10% off through ID.me.

Harley-Davidson
Harley Davidson has special stateside military financing including no down payment, reduced rates and flexible term options designed specifically for active duty military personnel.

Hyundai
Active duty, veteran or retired members of the US military may get a $500 price slash on any new Hyundai vehicle. Ask your local dealership for more info.

Indian Larry
15% discount with verification of military service.

Infiniti
Receive exclusive new vehicle pricing with their Vehicle Purchase Program. Special pricing varies by month. Must be Active Duty or Reserve and their dependents (spouse or domestic partner) US Military includes: Army, Navy, Air Force, Marines, Coast Guard and National Guard.

Jiffy Lube
Most Jiffy Lube locations offer up to 15% off to military members. Because Jiffy Lube locations are independently owned, some may opt not to participate in the discount program.

KC Hilites
Military, Government, and Law Enforcement personnel get up to 20 percent off.

Kia Motors America
Special offers for active members of the United States Armed Forces, reserves, and the immediate family of participant (spouse or child).

Land Rover
The Military Sales Specialists can help you with all aspects of military sales, your choice of vehicle and available discounts.

Lincoln Motor Company
Active Military Personnel & Reservists Serving on Active Duty, Veterans separated within the last 180 days, Retirees, Spouse/Surviving spouse, or other household members are eligible for a $750.00 Bonus Cash Offer good toward the purchase or lease of an eligible new recent model year Lincoln vehicle.

Meineke
Meineke franchises offer discounts to military members on select services. Discounts and qualified services vary by location.

Morris 4×4 Center
5% off + no min and free shipping for military personnel, police officers, firefighters, EMTs and paramedics.

Nissan
Receive exclusive new vehicle pricing with their Vehicle Purchase Program. Special pricing varies by month. Inlcudes Active and Reserve US Military, Retired Military, Veterans discharged from active service within the past year, and their spouses and partners.

O’Reilly Auto Parts
All O’Reilly Auto Parts stores provide a discount, usually 5% to 10%, to active and retired military personnel with proper ID. Offer is not valid online.

Pep Boys Military Discount
Every Tuesday, Wednesday and Thursday active-duty and retired military customers can receive a 10% discount at local stores. Present a valid military ID to save.

Scion
If you are a member of the U.S. Military with current active duty status or an inactive reservist, you may qualify for a $500 rebate towards the purchase or lease of a new Scion when financed or leased through a participating Scion dealer and Toyota Financial Services (TFS).

Subaru
Discount to active-duty and reserve members of the U.S. Air Force, Army, Navy, Marines, National Guard, and Coast Guard, as well as veterans and retirees within 12 months of your date of separation.

Take 5 Oil Change
Military active duty, reservists, and veterans are eligible to receive 25% off on any oil change at all Take 5 locations. Please show proof of service or a valid military ID.

TBC Retail Group (Tire & Auto Centers)
Spend 10% less on tire and auto services at any of 1,300 Tire Kingdom, NTB-National Tire and Battery, Merchant’s Tire and Auto Centers and Big O Tires centers nationwide. Present a valid US military ID to enjoy these discounts. Participation varies by location.

Throtl
Current & former U.S. military, military spouses and dependents and first responders (law enforcement, fire, and EMS) can save up to 10%.

TireBuyer.com
7% off tires for active duty military, veterans, and their family members. Free same day shipping available.

Toyota
Receive a $500 rebate on any new Toyota vehicle. Available to U.S. active duty and reserves, household members of eligible military personnel (including Gold Star families), retirees (within 1 year of retirement) and military veterans (within 1 year of discharge)

Volkswagen
As subscribers to the Military Assistance Corporation (MAC), Volkswagon helps simplify the payment process for military personnel who finance the purchase of a new vehicle with Volkswagen Credit. Applies to military personnel and full-time Federal Civil Service employees.

Volvo
Volvo’s military savings promotions change often, see site for latest offer.

Air Force Members: Use the Force Support Squadron (FSS)

The most underutilized services that active duty Air Force members have are the programs that the Force Support Squadron (FSS) offers.  Every base has a FSS, and most bases have similar programs run by their FSS.  Some of the best programs the FSS offers are Airmen and Family Readiness Center, the Auto Hobby Shop, Outdoor Recreation, Information, Tickets and Travel, and the Golf Courses.  Each of these offer a great service to the active duty member and are usually very reasonably priced.

Outdoor Recreation

Outdoor Recreation is another fantastic program run by the FSS.  Outdoor Recreation typically offers a laundry list of items you can rent for a day, weekend, or week.  Most of these items are camping, biking, fishing, and party related.  They offer items as small as a camping chair all the way to recreational vehicles and motorized boats.  If you want to go camping with the family but don’t want to buy all the gear, Outdoor Recreation is the perfect place to rent the equipment and save you the money from buying it.  Outdoor Recreation usually also offers several different trips a month.  The types of trips vary with time of year and location, but some examples are skiing and hiking trips.  These trips are usually day or weekend trips and are offered at a reduced price.  These can be a great way to discover a new adventure near you.

Airmen and Family Readiness Center

The Airmen and Family Readiness Center (AFRC) offers many different programs to help Airmen and their families.  Services offered are deployment preparation, family counseling, child education, Exceptional Family Member Program (EFMP), the Key Spouse Program, spouse education and career opportunities, financial counseling and several other benefits.  All of these benefits are provided at no cost and can typically be used by the military member and/or their family.  The AFRC is a great resource that members typically forget is available to them.  Upon arriving at a new base, military members are required to attend a Newcomers Orientation.  During this orientation, each AFRC will give a presentation on all the services they offer.  Pay attention to these services because you never know when you or your family may need to tap into these resources.

Information, Tickets, and Travel

The next service provided is the Information, Tickets, and Travel (ITT).  Information, Tickets, and Travel primarily offer discounted tickets at popular travel destinations.  One example is that Information, Tickets, and Travel offers discounted tickets to Walt Disney World Theme Parks.  You can purchase the discounted tickets at your local base and have them ready once you arrive at Disney.  They also offer discounts at resorts, cruises, vacations, sporting events, and lift tickets.  Some of these discounts are offered at the actual location as well, but Information, Tickets, and Travel can help save time by not needing to wait in line for these tickets.  Most tickets can be validated at ITT.  Military members also usually save on sales tax when buying from ITT since you are purchasing these tickets on base.

Golf Courses

The base golf course is the last program that will be discussed.  Most Air Force bases have their own golf course.  For the avid golfer, this can be a great benefit.  All bases that offer Golf Courses have reasonable green fees.  Want to spend some time out on the greens on your next vacation?  Consider using an Air Force Golf Course if you are a military member.  The FSS is responsible for the golf course and any associated food services.  The Shades of Green is a military only resort located on Disney World property, and they offer a special rate on golfing at one of the three world renowned Disney golf courses.

Auto Hobby Shop

The Auto Hobby Shop is a program offered to military members and their family.  At the Auto Hobby Shop, all the tools and lifts are available for a member to perform their own maintenance on their vehicle.  Every Auto Hobby Shop has certified auto mechanics who work there and are happy to lend their advice and assistance if needed.  Most base Auto Hobby Shops also offer self-serve car washing and free oil changes for spouses of deployed military members.  Just bring in a copy of deployment orders and the certified technician will schedule to do a free oil change.  Most bases have an FSS website with the Auto Hobby Shop’s location, hours and special programs they offer.

No matter what base you are stationed at, the Force Support Squadron offers numerous services to military members and their families.  These services are meant to be used and are better than most services you would find outside of the military.  The best way to enjoy them are to take advantage of as many of these services as you can.  In a world where the government is constantly looking for ways to cut spending, these services will disappear if they do not get used.  Take advantage of them and share some news adventures with your family.

25 Money-Saving Tips for Military Families

Want to protect your hard-earned cash? Military discounts go a long way. Always ask retailers, restaurants, airlines, motels and other establishments, “Do you have a military discount?” Meanwhile, here are 25 other money-saving tips. Go ahead, wave your frugal flag.

Save at home

1. Trade time/repair skill with a neighbor. Swap services or trade time (a Saturday, for example) with a neighbor. You may know plumbing and your neighbor may be handy with a hammer. Trading time with a trusted neighbor can extend beyond home repairs to other ways to help — lawn, babysitting, etc.

2. Do-it-yourself repairs and maintenance. Whether it’s painting a room, doing yard work or bathroom repairs, even those with all-thumbs can pull these off. If you’re already a DIY’er you can take on bigger projects. Check out service member deals at home improvement stores.

3. Use coupons. Use coupons or join a coupon exchange for home services that require a pro.

4. Shop garage/yard sales and second-hand stores. You can get great deals on things like furniture, dishes and clothes.

Save on entertainment

5. Host a pot-luck dinner. It’s cheaper, you get a variety of tastes and you don’t have to do all the cooking. It’s also fun and social. Tip: Have everyone bring a specific or assigned dish.

6. Think free outings. Check out the local parks, memorials and art galleries. Take a picnic. Go on a walk, hike or stroll. Have kids? Take them fishing, skipping rocks or to playgrounds.

7. Have a leisurely lunch. Have lunch out and eat dinner in. Think mid-afternoon. Lunch often is cheaper than dinner. Or when you’re out for dinner, split an entrée and each get an appetizer.

8. Seek discounts at amusement parks and museums. Most offer military discounts. Google “military discounts at amusement parks”— you’ll find a bunch, especially at the well-known ones. Same goes for museums. Better yet: Visit the Morale, Welfare and Recreation Digital Library available on Military OneSource to find a range of fitness, recreational and skills development programs, tickets and more — some at reduced rates.

9. Shop online. Sure, you’re already doing it. But you can shop for just about anything online and compare prices. You can also look for online coupons.

Save on clothes and school supplies

10. Look for deals. Shop at your military installation’s commissary and exchange. Shoppers typically save more than 30 percent compared to shopping in town. Or shop at outlet and discount stories. Consignment and thrifts shops are good too. And look for deals online.

11. Stock up on basics during sales. When you find good deals on socks and underwear, buy a few extra pair to lock in the savings.

12. Get the most from your wardrobe. Uniforms also can be worn off duty. Sticking to similar color combinations or buying clothes in neutral colors lets you do more with fewer clothes.

Save with military travel deals

13. Fly for free. Service members and family can fly free or at very low cost when space is available on military flights. Space-available Passenger Transportation, or Space-A Travel, can be tricky at times but can save you lots of money on flights.

14. Visit national parks for free. National Parks and Federal Recreational Lands Pass is your ticket to more than 2,000 federal recreation sites. A free annual pass is available for current U.S. military members and dependents.

15. Go camping. It can be cheaper and more fun than hotels. If camping isn’t your family’s thing, pick kid-friendly hotels that don’t charge extra for children.

16. Travel off-season, with a group or on a tour. It’s cheaper than going on your own or on-season.

17. Use Department of Defense Lodging services. Military families are eligible to use military lodging around the world, ranging from cottages on the beach to world-class resorts or recreational lodging facilities. Destinations include resort towns, big cities, oceanfront getaways, mountain top retreats and overseas locales.

Save on transportation

18. Walk, bike or use public transportation. It’s cheaper and healthier for you and the environment. If you can’t, carpool.

19. Shop for car insurance. If you must drive your own vehicle, compare rates online and consider a higher deductible on collision coverage if your car is older. While you’re at it, keep your car maintained — and DIY, if you can.

20. Buy a used car. A two-year-old car with some mileage can save you thousands versus a new car. Have your mechanic check it out, however.

Save on utilities

21. Do the basics. Turn off the lights when not using them. Unplug computers, appliances, charging cables when not using them. Visit the Department of Energy’s Energy Saver website. Don’t heat or cool rooms you don’t use. Close your fireplace damper when not in use.

22. Insulate your attic or other unfinished spaces. Use storm windows and weatherproof your home to reduce heat or cooling loss.

23. Watch the thermostat. Setting your temperature between 68 and 72 degree may be comfy, but it can kill your wallet. Set the air conditioner at 78 in the summer when home (consider running fans instead). Turn the heat to 64 or so and wear extra layers of clothes.

24. Buy energy-efficient appliances. Look for the Energy Star label.

25. Double check your cell phone and cable bills. Make sure you’re not paying for needless services. Also, bundle your phone, internet and cable, if you can. And watch your data use on mobile devices. That can break tight budgets.