Post by Katie Bryan, America Saves Communication Manager
April is Financial Literacy month and Military Saves wants to make sure you understand the importance of your credit history and how this ties into successful saving. It is important for all Americans to have savings. Having a savings account allows you to pay for emergencies, gives you financial freedom, and can help you avoid credit problems that could adversely affect credit scores.
Having a strong credit history, reflected in good credit scores, is also important because it allows you to qualify for lower interest rates and fees, freeing up additional money to set aside for emergencies, retirement, and other smaller unexpected expenses.
The connection between successful savings and good credit plays an important role in your financial life. Not only is it essential for obvious things like qualifying for a loan or getting a credit card, but also for less obvious things like getting cellular telephone service, renting a car, and perhaps even getting a job. Servicemembers can also be affected by poor credit in regard to their security clearance.
Want to learn more about the importance of credit history and successful savings?
Download the Importance of Credit History and Successful Savings packet, which includes information on:
• What is a Credit Report and Score?
• Why is Saving So Important?
• How do I Start Saving?
• What Savings Options Are Available to Me?
• Why is Good Credit Management so Important?
• 5 Tips for Building Good Credit.
• Frequently Asked Credit Questions.
• FDIC Model Safe Accounts.
What are you waiting for?
Set a Goal.
• Pay down debt, save automatically, and assess and improve your credit history. Go to www.annualcreditreport.com
Make a Plan.
• Improve your credit history by making the minimum payment on all bills, keeping balances low on sources of credit, and applying for credit wisely. (learn more here)
Save Automatically.
• In order to have good credit scores you must demonstrate a habit of good credit management over a long period of time. Set up direct deposit or put part of your check into 2 a savings account automatically each month to pay down debt and ensure you have enough money for emergencies.
Are you ready to take charge of your financial future?
Military Saves is here to help. Military Saves can help you develop your goals and take action. When you Take the Pledge, you’ll receive the following benefits: • In 2012 servicemembers and their spouses who Take the Pledge can also receive their free credit score from myFICO (the code will be available on the website after the pledge is taken or in through the welcome email from Military Saves) • Free monthly e‐mail newsletters with savings advice from national experts • Free subscription to the quarterly American Saver newsletter 3