Your credit score quickly informs financial institutions and other lenders how responsibly you use credit. A good credit score (typically considered to be 670 and above) is crucial for maintaining your financial health, and it can help you save more money in the long run through lower interest rates and payback schedules. By maintaining a good credit score, you can gain access to additional financial opportunities, such as getting approved for new loans or new lines of credit; obtaining better rates for auto and homeowners’ insurance; increasing your housing options, and reaching your overall financial goals.  

Here are 9 strategies that can help improve your credit score: 

1. Pay Bills on Time: Making timely payments on your loans, credit cards, and utilities will positively impact your credit score.   
2. Reduce Credit Card Balances: Aim to keep your credit card utilization ratio (the amount of credit you use vs. the total credit you have available) below 30%. 
3. Avoid New Hard Inquiries: Limit applications for new credit cards or loans, as multiple hard inquiries can lower your score.  
4. Maintain Older Credit Accounts: Keep older accounts open by using those accounts intermittently to lengthen your credit history, which positively affects your score.  
5. Diversify Credit Types: Having a mix of credit types (e.g., credit cards, installment loans) can positively impact your score.  
6. Set Up Payment Reminders: Use calendar alerts or automatic payments to ensure you never miss a due date.  
7. Monitor Your Credit Report: Regularly check your credit reports for errors or inaccuracies and dispute any discrepancies you find. 
8. Work with a Credit or Financial Counselor: If your credit score isn’t what you’d like it to be, consider seeking advice from a credit or financial counseling service to develop a personalized plan for improvement. The Office of Financial Readiness (FINRED) is a great resource for Active Duty, National Guard and Reserve servicemembers — and they offer free financial counseling services. Servicemembers also have access to Financial Counselors through Military OneSource and you can request an in-person, phone, or video appointment with a trained professional.    
9. Become an Authorized User: Being added as an authorized user on someone else’s account can help boost your credit score as long as both you and the primary cardholder keep the account in good standing.  

How AAFMAA Can Help 

Implementing the strategies above can gradually make a positive impact on your credit score and enhance your financial opportunities. AAFMAA can help with educational content to strengthen your financial independence. To learn more about our financial solutions, call an AAFMAA Member Benefits Coordinator at 800-522-5221, option 2, then option 2 again, or email [email protected].