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Why Building Good Credit is Important for Military Members

A photo showing an incredibly high credit score and credit application.


As a military member, your commitment to serving your country goes beyond the call of duty. You're entrusted with critical responsibilities, often involving national security. In addition to physical fitness and professional competence, maintaining good credit is another essential aspect that shouldn't be overlooked, especially if you're pursuing security clearances. Here's why having good credit is crucial for military personnel seeking security clearances.

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1. Financial Responsibility Reflects Trustworthiness

Security clearances are granted to individuals who demonstrate the utmost trustworthiness and reliability. Your financial behavior is considered a significant indicator of your overall responsibility. Good credit reflects your ability to manage your finances effectively, pay bills on time, and handle debt responsibly. It demonstrates to clearance adjudicators that you're capable of managing sensitive information and making sound judgments, even under pressure.


2. Building Good Credit Means a Reduced Vulnerability to Coercion

One of the primary concerns in granting security clearances is the risk of vulnerability to coercion or blackmail. Individuals with poor credit histories may be more susceptible to financial pressures, making them potential targets for exploitation by adversaries. By maintaining good credit, you demonstrate your financial stability and reduce the likelihood of being compromised due to financial difficulties.


3. Adherence to Security Clearance Guidelines with Good Credit Habits

Security clearance guidelines require individuals to exhibit a pattern of financial responsibility. Failure to meet financial obligations or a history of financial mismanagement can raise red flags during the clearance process. It's essential to adhere to these guidelines and demonstrate your commitment to upholding the standards expected of military personnel. Good credit can significantly enhance your credibility and strengthen your case for obtaining or retaining security clearances.


4. Access to Classified Information and Specialized Roles

Many military roles require access to classified information and participation in sensitive operations. Security clearances are essential for personnel in these roles to perform their duties effectively. Having good credit can open doors to specialized assignments and career advancement opportunities within the military. It showcases your reliability and suitability for handling confidential information, increasing your chances of being entrusted with higher-level security clearances.


5. Personal and Professional Benefits

Maintaining good credit isn't just about meeting clearance requirements; it also brings personal and professional benefits. It allows you to qualify for favorable interest rates on loans, obtain security clearances more easily, and build a solid financial foundation for yourself and your family. Good credit enables you to make important life decisions, such as purchasing a home or investing in education, with confidence and peace of mind.


In the military, trust is paramount, especially when it comes to handling classified information and national security matters. Good credit is a fundamental component of demonstrating trustworthiness and financial responsibility. By maintaining a positive credit history, military members enhance their eligibility for security clearances, access to specialized roles, and opportunities for career advancement. Armed Forces bank offers products that can help service members build or rebuild credit like our Credit Builder. Plus, use our Financial Calculators to help manage everything from creating a home budget to preparing for retirement.

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Subject to credit approval. Credit Building Savings account required.  A minimum of $300 opening deposit required into the Credit Builder Savings account.  $5 quarterly fee charged to the Credit Builder Savings account if not enrolled in eStatements.  Improved credit score is not guaranteed.

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