A Guide for Young Troops

Joining the military gives young service members steady pay and access to financial tools built specifically for the military community. That combination makes it one of the best times in your life to build a strong credit score, but it won’t happen automatically. You still need to open the right accounts, use them wisely, and avoid common mistakes that new troops make.

This guide walks you through the fastest ways to build credit in the military, the best first credit cards for enlisted troops, and the credit habits that’ll protect your score during your time in service and beyond.

Fastest Ways to Build Credit in the Military

If you’re building credit from scratch, here’s what moves the needle the fastest:

1. Open one credit account and use it lightly: A single credit card, used for small purchases and paid off in full each month, is enough to start building a payment history. You don’t need multiple cards to build credit.
2. Pay on time, every time: Payment history makes up 35% of your FICO score, more than any other factor. Set up autopay for at least the minimum due so a late payment never slips through during a busy training cycle or field exercise.
3. Keep your credit utilization low: Try to use less than 30% of your available credit limit, and under 10% if you’re aiming for an excellent score. If your limit is $1,000, keep your balance under $300 (ideally under $100).
4. Let your accounts age: Length of credit history counts toward your score, so avoid closing your oldest account even after you upgrade to something better.
5. Check your credit report for errors: You’re entitled to a free credit report every week from each of the three bureaus at AnnualCreditReport.com. Dispute anything that looks wrong.
6. Consider a credit-builder loan: Many military-focused credit unions offer small loans specifically designed to help members establish payment history without taking on major debt risk.

Best First Credit Cards for Enlisted Troops

Your first credit card doesn’t need excellent travel rewards or a high spending limit. It needs to report to all three credit bureaus and fit your budget and lifestyle. Here are some good credit card types for newly enlisted troops who want to build credit.

Secured vs. Unsecured Credit Cards

One of the most common questions from new troops is whether they should get a secured or unsecured military credit card. Here’s the difference between the two.

Secured cards

Secured cards require a cash deposit, usually $200 to $500, that becomes your credit limit. That deposit protects the issuer, which is why approval is easier even with no credit history.

You still use the card like a normal credit card, and your on-time payments get reported to the credit bureaus just the same. Many issuers will review your account after a few months of on-time payments and upgrade you to an unsecured card with your deposit refunded.

A secured card is a good credit card for people in the military with no credit. It’s one of the safest, fastest ways to establish a credit, and the deposit keeps your risk low while you learn good spending habits.

Unsecured cards

Unsecured credit cards don’t require a deposit, but they typically require at least some credit history or income verification for approval. Certain military-focused starter cards will approve enlisted troops with limited history based on steady military pay.

If you already have a credit file (even just a cell phone plan in your name), you might qualify for an unsecured starter credit card and can skip the deposit step entirely. It’s worth applying even if you’re not sure that you qualify.

What Hurts Military Credit Scores the Most?

Understanding what damages your credit score is just as important as knowing how to build it. Watch out for these common pitfalls:

• Missed or late payments. Even one payment 30 days late can knock 60 to 110 points off a good score and stay on your report for seven years.
• Maxing out credit cards. High credit utilization signals risk to lenders, even if you pay in full every month.
• Payday loans and rent-to-own storefronts near base. These predatory lenders target junior enlisted troops and can trap you in high-interest debt cycles that are hard to escape.
• Co-signing loans for friends. If they miss payments, it hurts your credit report, too.
• Opening too many accounts at once. Each hard inquiry can ding your score slightly, and a pile of new accounts lowers your average account age.
• Ignoring your credit report. Errors, identity theft, and old collections can sit on your file for years if you never check it.
• Letting PCS moves disrupt your bill pay. A missed statement during a move is still a missed payment as far as the credit bureaus are concerned.

A low military credit score isn’t just an inconvenience. Under continuous vetting programs used for security clearances, unresolved debt, missed payments, and financial mismanagement can trigger a review of your clearance eligibility. Recruiters and career counselors increasingly point to good credit as part of overall financial readiness.

Authorized User Strategies

Becoming an authorized user on someone else’s credit card, like a parent’s or spouse’s, is one of the fastest ways to add positive history to your credit report quickly. Here’s how it works and what to check first:

• Confirm the issuer reports authorized users to the bureaus. Not all of them do. Ask the primary cardholder to check with their card issuer.
• Check the primary cardholder’s habits. Their payment history and credit utilization become part of your credit file. A responsible primary user helps you. A primary user who runs high balances or misses payments can hurt you.
• You don’t need to actually use the card. Simply being added as an authorized user can add the account’s age and payment history to your own credit report, even if you don’t use the card for purchases.
• Ask to be removed if the relationship or the card’s status changes. You can be taken off an account at any time without affecting the primary cardholder’s credit.

This strategy works especially well for younger troops whose parents have long-standing, well-managed credit accounts. It’s a low-risk way to add years of history to a thin credit file.

Building Good Credit Habits During Deployment

Deployments and long training rotations can make it easy to lose track of bills, and a missed payment while you’re in the field can undo months of progress. Here are some ways to protect your credit before you leave:

• Set up autopay on every account. Your payments will go through automatically even without internet access.
• Give a trusted person power of attorney. That way, someone can handle your finances if something unexpected comes up.
• Enroll in paperless statements and account alerts. When you do have connectivity, you can easily check on your accounts and make sure you’re up to date.
• Know your Servicemembers Civil Relief Act (SCRA) rights. The SCRA caps interest rates at 6% on debts you took on before entering active-duty service, which can reduce financial stress that leads to missed payments.
• Freeze new credit applications while deployed. It’s harder to review offers or catch fraud when you’re not checking accounts daily.
• Monitor your credit report when you return. Deployment is also a common window for identity theft, since mail and account access can be interrupted for months.

FAQ

Q: How Long Does It Take to Build Credit in the Military?

Most young troops can establish a credit score within three to six months of opening their first account and making on-time payments. Reaching a “good” score of 670 or higher typically takes one to two years of consistent, responsible use. Reaching “very good” or “excellent” (740+) credit usually takes several years of low utilization, on-time payments, and a mix of account types.

Q: Should I Get a Secured Credit Card?

If you have no credit history, a secured card is one of the safest and most reliable ways to start building credit. It requires a refundable deposit, which makes approval easier, and your on-time payments build credit history just like an unsecured card. Many issuers will upgrade you to an unsecured card after six to twelve months of responsible use.

Q: Does Joining the Military Improve Credit?

Joining the military doesn’t automatically improve your credit score, but it creates conditions that make building credit easier: steady income, access to military-focused credit unions, financial counseling through your installation, and legal protections like the SCRA. The improvement comes from how you use those advantages, not from enlistment itself.

Q: What Credit Score Should I Aim For?

Aim for at least 670, which FICO classifies as “good” and is enough to qualify for most credit cards, auto loans, and rental applications at reasonable rates. For the best rates on major purchases, including a future VA home loan, aim for 740 or higher. Lenders reserve their lowest interest rates for borrowers in the “very good” to “exceptional” range.