Veterans and service members face unique challenges, especially when it comes to credit health. Strong credit is essential, as it affects access to important needs like housing, loans, and a secure financial future.  

Credit monitoring helps veterans and active duty service members overcome these challenges by offering early detection of credit issues, helping them to manage their finances and protect their financial well-being. 

Common Credit Challenges for Veterans and Military Families 

These statistics illustrate the pressing credit challenges the military community faces:  

• Delinquencies and defaults are up to 10 times more likely for veterans in the first six months after separating from service. 
• Around 30% of service members who join the military before the age of 20 have subprime credit scores by age 24. This figure increases to 58% among those who leave service early. 
• More than 75% of military and veteran families report carrying debt, while more than half of veteran families have less than $500 in emergency savings. 
• More than half of military members reported facing barriers to saving money in the past two years. 
• Credit reporting issues are a common concern in the military community, with over 17,000 complaints filed by service members in 2021. Many of these complaints involve medical debt, and more than half of those complaints involved debts veterans claimed they did not owe. 
• More than 80% of veterans reported that finances have caused them stress within the past year. 

How Veterans and Service Members Can Help Strengthen Their Credit Health 

• Check Your Credit Report Regularly: Review your credit reports for inaccuracies, unpaid debts, or signs of identity theft. Credit monitoring tools can simplify this process and provide alerts for possible suspicious activity. 
• Pay Bills on Time: Payment history is one of the most significant factors in credit scores. Timely payments on loans, credit cards, and other bills prevent missed payments from negatively affecting your credit scores. 
• Manage Credit Utilization: Your credit utilization ratio measures how much of your available credit you’re using. Your credit utilization ratio is determined by dividing your total credit card balances by your total credit limits. Aim to keep this ratio below 30%, as lower utilization can help suggest responsible credit management and reduces the risk of overextending credit. 
• Build a Positive Credit History: Having a long history of timely payments can have a significantly positive impact on your credit. Secured credit cards or small personal loans can help you establish a positive credit history, especially if you’re just getting started. 
• Establish an Emergency Fund: An emergency fund helps reduce reliance on credit during tough times, making it easier to avoid high-interest loans or credit cards when unexpected expenses come up. 
• Focus on Reducing Debt-to-Income Ratio: Your debt-to-income ratio (DTI) compares your monthly debt payments to your monthly income, showing how much of your income goes toward paying off debt. Reducing this ratio by paying down high-interest debts can significantly help your financial stability and can positively impact your credit. 
• Limit New Credit Applications: Avoid multiple new credit applications in a short period. Each time a lender reviews your credit report to approve a new credit application – known as a hard inquiry – it can negatively affect your credit score. Too many hard inquiries in a short period can signal to lenders you may be taking on too much debt, potentially impacting your creditworthiness. Only apply for new credit when necessary. 

How MyScoreIQ Can Help Veterans Protect Their Credit 

MyScoreIQ provides you and your family with essential tools to protect and strengthen your credit health. With 24/7 credit monitoring and real-time alerts, MyScoreIQ notifies you of significant changes in your credit report, allowing you to catch inaccuracies or possible suspicious activity and address them quickly. 

Additionally, MyScoreIQ supports your financial readiness with tools designed to help you track and positively impact your credit health. These resources are especially valuable as you transition to civilian life, where strong credit can open doors to achieving important goals, like securing loans or finding housing. MyScoreIQ can help you confidently take charge of your financial future.  

💡 Learn More: How Do You Build Credit In The Military? 

Bottom Line 

Building and maintaining good credit is especially important for veterans, military members and their families. Your credit health can affect your ability to secure favorable loan terms and achieve long-term financial goals. Many veterans and military families face unique credit challenges, but proactive steps like monitoring your credit, managing debt wisely, and establishing positive financial habits can help you protect and strengthen your financial future.  

MyScoreIQ gives you access to credit monitoring with real-time alerts, identity theft protection, and resources designed specifically to help you achieve your financial goals. 

MyScoreIQ Military Discount 

Veterans, military members, and their families can monitor their credit and identity with MyScoreIQ for 25% off. Don’t wait—sign up today to take charge of your credit.