Military & Veterans Life

How Military & Veterans Can Repair Their Credit Rating

Things that can torpedo your VA financing

If you are in credit trouble, you aren’t alone. There are so many military and veteran families and Americans in general who have had issues with their credit.

So, what are the things that impact your credit score?

  • The length of your credit history
  • If you’ve filed for Bankruptcy
  • Payment history (this means making payments on time, which is vital)
  • Having a variety in your credit history (credit cards, loans, etc.)
  • If you have anything in collections

Repairing your credit is a process that takes time. It requires paying off debt and anything in collections, then showing you are a good credit risk for a solid length of time. Although much of your credit history will remain on your report for seven years or more, once you pay off collections, it will be removed within 30 days. This will add a significant bump to your score if this is impacting you.

Repairing your credit score is not an easy process. You may have to start with a secure credit card. With a secured credit card, you personally put up the money to secure it and the limit is usually between $500-$1000. The goal is to utilize it for purchases and pay it off every single month for up to a year. This will slowly bring your score up, demonstrating that you are responsible and pay your debts. If you are all in, you can do this. Just be prepared for the time it requires.

Good News About Your Credit Score & VA Home Loans

The good news is that utilizing your VA Home Loan benefit doesn't require a minimum credit score. The VA requires that the lender look at the entire profile and not just that number. That being said, most lenders working with VA Home Loans will want to see a minimum score of 580-620, which is actually considered a poor score. It’s important to note that with a score this low, you may still be able to purchase a, but make sure you will be able to afford it. Setting yourself up for success (especially as a homeowner who will have unexpected expenses) is key.

According to Experian, these are the things you need to do to improve your credit score:

  1. Pay your bills on time.
  2. If you've been making utility and cell phone payments on time, there is a way for you to improve your credit score by factoring in those payments through a new, free product called Experian Boost. Through this new opt-in product, consumers can allow Experian to connect to their bank accounts to identify utility and telecom payment history. After a consumer verifies the data and confirms they want it added to their Experian credit file, an updated FICO® Score will be delivered in real time. Visit experian.com/boost now to register. By signing up for a free Experian membership, you will receive a free credit report and FICO® Score immediately.
  3. Pay off debt and keep balances low on credit cards and loans. This impacts your debt-to-income ratio and shows a low risk level.
  4. Don’t apply for extra credit cards; it is unnecessary and can damage your credit score. Stick with one or two.
  5. Look at your credit report every quarter and dispute anything that is inaccurate.

You are taking an important first step in repairing your credit just by prioritizing it. There are many guides and self-help books out there to help on your journey too. Dave Ramsey is certainly popular but may be a little extreme for many. A good first step may also be seeing an accountant and having them draw up a budget plan for decreasing debt and rebuilding credit.

Whichever path you take to repairing your credit, you’re headed in the right direction.

If you are a servicemember on active duty, prior to seeking a refinance for your existing mortgage loan, please consult with your legal advisor regarding the loss of any benefits you are entitled to under the Servicemembers Civil Relief Act or applicable state law.

FICO is a registered trademark of the Fair Isaac Corporation.

More Free Advice on Finding Your New Home from WeSalute

We're Here to help! Check out the WeSalute Marketplace

From getting your financial house in order, to buying a new home and moving to your new home, WeSalute has many options for you in the "Career & Financial Services" category of the WeSalute Marketplace. Check it out today!

Blog Tags:

Military & Veterans Life

From Our Member Community

Scott Higgins

Discounts & Benefits

WeSalute: Your Ultimate Back-to-School Resource

The back-to-school season is upon us, and WeSalute is here to ensure you and your family are fully prepared. We understand that this time of year can be hectic and costly, which is why we’ve partnered with a wide range of leading brands to bring you exclusive deals on everything you need. From travel and technology to apparel and school supplies, WeSalute is committed to being there for all our members, from all walks of life.
delivery

Discounts & Benefits

WeSalute Review: Your Ultimate Ship-to-Home Buyers Guide for 2025

As a WeSalute Member, you have access to exclusive savings delivered right to your door. This guide highlights some of the best ship-to-home offers available, whether you're sending a gift, planning your meals, or treating yourself. These exclusive savings are a small way for our partners to thank you for your service, making it easier than ever to enjoy premium products and services from the comfort of your home. Drawing from our 25+ years of experience, here at WeSalute, we're dedicated to helping active duty military, veterans, and their families access valuable savings. If you are new to WeSalute, start by creating a free account to gain access to hundreds of offers and if you want even more benefits, including exclusive discounts you can’t find anywhere else, sign up for WeSalute+ today!
nature

Discounts & Benefits

WeSalute Review: Your Essential State Park Travel Guide 2025

Where do beauty, history, and scenic serenity come together? State parks, of course. They are all over the United States. Most states have several parks, yet many people do not take advantage of visiting these wonderful places. Whether you are a fan of hiking, skiing, camping, or getting a history lesson, there is a state park available for you to indulge in. Many state park systems, such as West Virginia State Parks, offer direct discounts for veterans and active-duty military. It's recommended to check directly with the state park or state park system website to see what they might offer.

Join Our Community.
 

Yes, Get Me Started