How to Build Credit in the Military: The Basics

When you join the military, you’re not just committing to serve your country—you’re also taking on more personal responsibility. Whether you are fresh out of basic training or just settling into your first duty station, one of the smartest moves you can make is learning how to build your credit early.

In this article, we’ll cover the basics of building credit in the military, why credit matters for service members, and how Armed Forces Bank can support you.

What is Credit?

“Credit” is your ability to borrow money with the promise of paying it back later. This is measured through your “credit score,” a number that reflects how trustworthy you are as a borrower. Scores typically range from 300 to 850, and the higher your score, the better.

Here are the main factors that affect your credit score:

• Payment History: Do you pay your bills on time?
• Credit Utilization (Amounts Owed): How much of your available credit are you currently using?
• Length of Credit History: How long have your credit accounts been open?
• Credit Mix: Do you have a variety of credit types (credit card, loan. etc.)?

• New Credit: Have you opened multiple accounts recently?

If you are new to credit, don't worry! Everyone starts somewhere, and building your credit can be easy with the right tools and habits.

Why Does Credit Matter?

Credit impacts more parts of your life than you might expect. It determines how quickly—and how affordably—you can reach your financial goals.

Why credit matters for service members:

• Security Clearances: Poor credit can raise red flags during a background check.
• Housing: You may need a credit check when applying for off-base housing.
• Deployments and PCS Moves: Strong credit can make it easier to cover upfront costs while waiting for reimbursements.

Why credit matters for everyone:

• Competitive Interest Rates: Better credit usually means lower interest rates, which saves you more money over time.
• Renting a Home: Landlords often check credit to decide if you are a reliable tenant.
• Big Purchases: Having good credit helps you qualify for better terms when shopping for cars, homes, or even cell phone plans.
• Emergencies: A strong credit score can give you access to emergency funds when you need them most.

In short, your credit can affect both your military career and your personal life. That’s why it’s smart to get ahead of it now. After all, staying mission-ready includes staying credit-ready!

How to Build Credit While in the Military

No credit history? No problem! Here are five tips for building credit in the military that actually work:

1. Open a Secured Credit Card

This is one of the best ways to build credit. A secured credit card works like a regular credit card, but it requires a refundable security deposit. You use your card for everyday purchases, then pay it off each month. Over time, your activity helps build your credit history.

MISSION-READY TIP: Look for a secured card that reports to all three major credit bureaus and offers military-friendly terms—like the Credit Builder Secured Card from Armed Forces Bank.

2. Pay On Time, Every Time

Your payment history has the biggest impact on your credit score. Even one missed payment can be a setback. Schedule calendar reminders to make payments on time, or set up autopay so you never miss a due date.

3. Keep Card Balances Low

Try not to use more than 30% of your available credit. For example, if your credit limit is $500, aim to keep your balance below $150. Why? Using too much of your available credit can lower your score, even if you make payments on time.

4. Limit New Credit Applications

Each new credit application over a short period can cause a small dip in your score. Apply for credit accounts only when needed, and remember to space out your future applications.

5. Monitor Your Credit

Use free tools or apps to check your credit score and watch your progress. This also helps you spot fraud early by noticing unusual credit activity.

Building Credit with a Military Bank

At Armed Forces Bank, we have served military members and their families for over 100 years! We understand the financial realities that come with military life—whether you are at boot camp, stationed overseas, or preparing for a PCS move. That’s why we created the Credit Builder Secured Credit Card to help service members build or rebuild their credit easily.

Here’s what makes it the best credit card for military members who are just starting out:

• No credit history needed to apply

• Easy-to-manage minimum deposit
• Reports to all three credit bureaus
• No annual fees or over-the-limit fees
• Military-friendly client support
• Online and mobile banking* tools to manage your account from anywhere

The best part? When you use your Credit Builder Card responsibly, you can upgrade to an unsecured credit card with perks and bonuses in the future.

Military Members: Let’s Build Your Credit!

The sooner you start building credit, the better positioned you’ll be for whatever comes next—on duty or off. Open a Credit Builder Credit Card from Armed Forces Bank today and take the first step!

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