Deployment can be a stressful time, and finances often add to the burden. Credit scores can sometimes take a hit. This is common, but it doesn’t have to be permanent. This article provides actionable steps on how to fix credit issues related to deployment. We’ll explore pre-deployment planning, managing finances while deployed, and tackling challenges upon return.
Table of Contents:
- Planning for Deployment: Safeguarding Your Credit
- Managing Finances While Deployed
- How to Fix Credit Issues Related to Deployment Upon Return
- Conclusion
Planning for Deployment: Safeguarding Your Credit
Before deployment, get your financial house in order. It’s like a pre-flight check for your credit. Contact all creditors.
Inform them of your upcoming deployment and provide documentation. Some may offer temporary payment relief or other assistance for military members.
Set Up Auto-Pay and Allotments
Automate bill payments like rent, utilities, and loans. Military allotments can send a specific amount to a creditor every month.
Allotments give extra support so you won’t stress about missing bills. This helps prevent the need to fix credit issues related to deployment upon your return.
Consider a Power of Attorney
Grant a power of attorney to a trusted friend, family member, or spouse. This allows them to act on your behalf while deployed, monitoring accounts, and handling payments.
Single service members should especially consider this. It ensures someone can manage their finances while they’re away. Discuss and agree upon financial matters in advance.
Check Your Credit Report and Freeze It
Get a copy of your credit report before deploying. Review it to understand your open accounts and their status. Learn how to get your free credit report from the Federal Trade Commission (FTC) website. This pre-deployment credit check establishes a baseline.
A credit freeze or an active duty alert prevents fraudulent activity. It protects you from unauthorized credit accounts opened in your name during deployment.
The Federal Trade Commission provides details on freezing credit and active duty alerts. This can safeguard your credit history while you are serving.
Managing Finances While Deployed
Deployment can bring financial changes that impact your credit. Being prepared and knowing how to fix credit issues related to deployment can help.
The Servicemembers Civil Relief Act (SCRA)
The SCRA offers financial protections, such as reducing interest rates on debts to 6%. It also covers areas like evictions, mortgage payments, and auto loans.
While SCRA benefits aren’t automatic, claim them before deployment to avoid issues. Utilizing these benefits can help you maintain a healthy credit history.
Address Issues Quickly
Despite precautions, issues might arise during deployment. Contact creditors promptly about missed payments to get assistance during deployment. Addressing issues quickly will limit potential damage.
How to Fix Credit Issues Related to Deployment Upon Return
Returning home doesn’t erase all credit worries. Some challenges might require extra effort to fix credit issues related to deployment.
Dispute Errors and Fraud
Review your credit report again upon return. Check for errors, unauthorized accounts, or identity theft. A thorough review helps you dispute inaccuracies related to your deployment.
Utilize free active duty credit monitoring from bureaus like Equifax, Experian, and TransUnion. This flags unusual activity quickly, allowing for faster response times and better credit reporting.
Create a Budget and Repayment Plan
Develop a budget that focuses on paying down high-interest debts. Consider a financial counselor for guidance on repayment plans tailored to your income, debt, and financial goals. A counselor can offer advice on repayment options.
This helps address financial strain and the need to fix credit issues related to deployment after returning from service. It sets you on the path to recovery.
The FTC also offers answers to frequently asked credit questions. Review these to better understand your rights and options.
Explore Available Financial Resources
Many resources assist veterans and service members facing financial hardship. Programs like Army Emergency Relief (AER) offer assistance and counseling.
Investigate programs from government agencies, nonprofits, and state benefits. Some state laws address lease obligations after military moves exceeding 50 miles due to involuntary discharge. These resources can help you address any difficulties with how to fix credit issues related to deployment.
Conclusion
Returning home shouldn’t be burdened by the need to fix credit issues related to deployment. Rebuilding your credit after service is possible.
Planning, utilizing SCRA benefits, and acting quickly are crucial. Exploring available resources and collaborating with creditors and counselors offer valuable support.
By addressing financial challenges proactively, you can navigate the process of fixing credit issues and focus on a smooth transition back to civilian life. Taking advantage of veteran benefits and support programs can ease the burden and promote financial stability.
