Why is Credit Important?

A credit score is a number assigned to you that indicates to a lender your capacity to repay a loan. This score helps lenders decide if they will give you a loan and the interest rate you will be charged.

Your Credit Score is based on:

• Payment history [35%] – Are you paying your debts on time?
• Amounts owed or credit utilization [30%] – Can you handle what you owe?
• Length of credit history [15%] – How long have you had and used credit?
• Type of credit [10%] – This considers the various types of credit accounts you have (revolving and installment) and whether you use credit appropriately.
• New credit or inquiries [10%] – Each time you apply for a new line of credit, it counts as an inquiry or a “hard” hit and multiple “hard hits” can potentially lower your credit score.

Come talk to one of our Financial Counselors to get a FREE FICO Credit Score and discuss ways to improve your credit score. 

Tips to Improve Your Credit Score

• Ensure your credit report is accurate and up to date.
• Develop a plan to correct any negative items that are affecting your score.
• Payment history: Make all payments promptly and stay within your limits. Use automatic payment plans or set up a bill-paying calendar.
• Amounts owed or Credit Utilization: Pay down your existing balances and try not to exceed 30% 10% of the credit limit on a credit card. When possible, pay cards in full every month.
• Length of Credit History: Don’t add any new accounts and do not close out long-term accounts. Establish new credit but only if you have little or no existing credit history.
• Type of Credit: Scores consider your mix of credit account types: revolving debts (credit cards, retail accounts, lines of credit) and installment loans (car loans, mortgage loans, student loans). It's not necessary to have one of each, and it's not a good idea to open credit accounts you don't intend to use.
• Come talk to one of our Financial Counselors or attend our Credit…What’s the Big Deal class for more ideas.

More Information

Office of Financial Readiness

10 Steps to Protect Against Identity Theft

1. Shred All Identifying documents, bank slips, credit card receipts, etc.
2. Shop Online ONLY on secure websites – Look for a padlock icon or “https” in the address bar to ensure your data is encrypted..
3. Keep anti-virus and anti-spyware software up to date.
4. Beware of Phishing Scams –  Identity thieves will try to obtain your sensitive data, online or by email, by disguising themselves as a trustworthy company, such as a credit card company, federal agency or financial institution. Don't respond to any email or click any links contained within it, even if it appears to be legitimate. 
5. Ask about Identity Theft Prevention Procedures from your bank, credit card companies and even your employer.
6. Don’t fall for telephone scams – Never give out your personal information over the phone to someone who calls you claiming to represent a bank, credit card company, charity, or other organization.
7. Check your Credit Report  – You can get the free report from the three major credit reporting agencies by going to Annualcreditreport.com. By viewing your credit report regularly, you can verify the information is correct and check for suspicious activity, particularly mysterious new accounts. 
8. Protect your Social Security Number  –  Always validate the reason your SSN is needed and how it will be stored, shared and protected. Ask if there is another identifier that can be used instead. 
9. Safely store your Important Documents such as passports, birth certificates and social security cards.
10. Be mindful of your snail mail –  Don’t let mail sit in your mailbox for too long and consider dropping sensitive mail off at a secure collection box or at the post office itself.

For more information on protecting your identity, schedule an appointment at 866-854-0838, with one of our Personal Financial Readiness Specialists today.

Preparing Finances for Deployment

Deployment can be a financially advantageous time for military members if you know how to prepare. Pre-deployment financial readiness can ease the stress of deployment, minimize or eliminate financial issues from occurring while away, and make sure no opportunity is missed.

Service members can take on-demand trainings through Navy e-Learning called “Pre-Deployment Financial Readiness” and “Post-Deployment Financial Readiness.” Dependents can view the same trainings by downloading the MyNavy Financial Literacy app.

Personal Financial Managers are happy to provide checklists for pre- and post-deployment financial readiness by emailing NBKPFM@us.navy.mil or scheduling an appointment at 866-854-0638.

Preparing for a major purchase can feel like a whirlwind of excitement and anxiety. Is it the right one? Can I afford? What can I afford!?

Your Personal Financial Managers are ready to walk you through what the buying process is like for many major purchase so you feel confident and prepared.

• Check the NavyLifePNW Events calendar to see when our next Home Buying, Car Buying, and other financial education classes are being offered.
• Schedule an appointment by calling 866-854-0638.
• Do your own research using the Office of Financial Readiness website:
  • Make Major Purchases With Care and Confidence
  • Car Buying Basics
  • Home Buying Basics