Understanding Military Enlistment Credit Checks

I'm thinking about enlisting in the military after high school and heard they might do a credit check. Can anyone clarify what they're looking for and how much my credit score matters? Any advice would be appreciated!

When enlisting in the military, a credit check is often part of the process, mainly due to security clearance needs. Some branches require clearance even for non-sensitive positions, as a precautionary measure. Any role that necessitates the handling of classified information will definitely require a clean finance sheet.

This background check primarily gauges your financial reliability and makes sure you're not at risk for bribery or influence, which can happen if you're under financial pressure due to debt. They look at items such as unpaid loans, bankruptcy, late payments, high levels of credit utilization, and more.

If you have significant debt or a poor credit history, it doesn't necessarily eliminate you from consideration. The military may take into account the reasons behind your low credit score or high levels of debt. For example, if your credit took a hit due to a medical emergency, that might be viewed differently than if it was from reckless spending.

That said, if you're aware of any issues, it's a good idea to begin addressing them now. Make sure you're up to date on payments, work on lowering your debt-to-income ratio if it's high, and consider speaking with a financial advisor. If it's possible, try to correct any issues before the credit check process begins.

Bottom line: While credit score isn't everything, it is one aspect of your overall financial stability that the military could take into account during the enlistment process.