When preparing for deployment, it’s crucial to safeguard your credit. Taking simple steps now can protect your credit during and after your deployment, giving you peace of mind. Let’s explore some important strategies to protect your credit while you’re away.
Check and Freeze Your Credit
Prior to deployment, check your credit report to have a clear record of all your open accounts and their statuses. By monitoring your report regularly, you can detect any fraudulent activity, such as unauthorized account openings, promptly.
You can obtain a free copy of your credit report weekly at AnnualCreditReport.com or yearly from each of the three major credit bureaus (Experian, TransUnion, Equifax). Review these reports for accuracy and any negative marks that may impact your credit.
Freeze Your Credit
Consider freezing your credit with an active duty alert to prevent unauthorized access by lenders. This action restricts new credit or loan applications in your name, adding an extra layer of security to your financial accounts.
Active duty military members can request a free active duty fraud alert, which freezes their credit for one year. This alert also stops prescreened credit offers for two years. Contact one credit bureau to initiate the freeze, which will be shared with the others.
Active Duty Credit Monitoring
Active duty military personnel are eligible for free credit monitoring from the three major credit bureaus, mandated by the Federal Trade Commission. This service provides alerts of any credit report changes within 24 hours, helping you detect potential fraud early.
To enroll, submit your details and proof of active duty status to each credit bureau to start monitoring your credit activity effectively.
Know Your Rights Under the SCRA
The Servicemembers Civil Relief Act (SCRA) offers protections to active duty members in various financial matters. Understanding your rights under the SCRA can help you mitigate financial risks and ensure your credit stays intact.
Key protections under the SCRA include interest rate caps, safeguards against default judgments, and protections from foreclosures and repossessions. These rights apply to active duty members of the armed forces and their dependents.
Organize Your Finances
Prior to deployment, review and streamline your finances by notifying your creditors and service providers about your upcoming absence. Consider suspending non-essential services and paying off outstanding balances to avoid financial complications while you’re away.
Suspend or Cancel Some Services
If feasible, pay off pending bills and inquire about suspending certain services like car insurance that you won’t utilize during deployment. This proactive step can lead to cost savings and prevent missed payments while you’re abroad.
Consider a Power of Attorney
To manage financial matters efficiently during deployment, consider assigning a power of attorney to a trusted individual. This legal arrangement allows the designated person to act on your behalf regarding financial tasks, ensuring your affairs are handled appropriately in your absence.
Sort Out Your Mail Situation
To minimize the risk of identity theft, opt out of unsolicited junk mail by registering with DMAchoice. This service reduces promotional mail from unfamiliar sources, protecting your personal information. Additionally, ensure your mail reaches a secure address where it can be managed securely during your absence.
By following these proactive steps and understanding your rights, you can protect your credit and financial well-being during your deployment. Safeguarding your credit is essential for maintaining financial stability and peace of mind while serving your country.
For more information, you can refer to the full article here.
