The Importance of Credit in the PCS Cycle
A Permanent Change of Station (PCS) move is often a whirlwind of orders, packing, and goodbyes. However, if your goal is to buy a home at your next duty station, your credit score is your most important asset. A higher score unlocks lower interest rates. For a $400,000 mortgage, even a 0.5% difference in your rate can save you tens of thousands of dollars over the life of the loan.
Most mortgage applications happen 30 to 60 days before a move. Therefore, you need a 90-day head start to polish your credit profile. As a real estate professional serving the military community, I recommend this proactive “90-Day Plan” to ensure you are mortgage-ready the moment you land.
Day 1–30: The Deep Dive Audit
You cannot fix what you do not see. Your first month is dedicated to discovery.
- Request Your Reports: Visit AnnualCreditReport.com. Download your reports from Equifax, Experian, and TransUnion. These are free.
- Dispute Every Error: Check for accounts that do not belong to you. Look for incorrect late payments. Military families often see errors due to frequent address changes. If you find a mistake, dispute it immediately through the bureau’s website.
- Identify Your Utilization: Look at your credit card balances compared to your limits. High utilization is a major score-killer. Aim to keep your balance below 30% of your total limit on every single card.
Day 31–60: Strategic Debt Reduction
Once you have a clean report, focus on the numbers. Your credit score rewards “available” credit.
- The “Micropayment” Strategy: Instead of one large payment, make small payments throughout the month. This lowers your average daily balance. It signals to the bureaus that you manage debt well.
- Ask for a Limit Increase: Call your credit card companies. Ask for a higher credit limit. Do not spend the extra room. This instantly lowers your utilization ratio and can provide a quick score bump.
- Focus on the “Smallest” Debts: Pay off small balances entirely. A “zero balance” on an account is better for your score than three accounts with tiny balances. This also improves your Debt-to-Income (DTI) ratio, which lenders watch closely.
Day 61–90: The “No New Debt” Zone
As you enter the final month before your home search, your goal is stability.
- Avoid New Inquiries: Do not apply for new credit cards. Do not finance a new car for the move. Every “hard inquiry” can drop your score by several points.
- Keep Old Accounts Open: You might feel tempted to close an old card you no longer use. Do not do it. The “age of credit” makes up 15% of your score. Closing an old account shortens your credit history.
- Automate Everything: One late payment during this window can ruin months of hard work. Set every bill to autopay. This ensures your “payment history”—the largest part of your score—remains perfect.
The Impact of a Higher Score on Your VA Loan
While VA loans have more flexible credit requirements than conventional loans, “flexible” does not mean “free.” Lenders often have their own “overlays” or minimum score requirements. A score of 720 or higher typically places you in the best “pricing tier.” This means lower monthly payments and more money in your pocket for your family.
The Bottom Line
A PCS is stressful, but your financing does not have to be. By starting this 90-day plan today, you put yourself in the driver’s seat. You will arrive at your new duty station with the confidence of a buyer who has a top-tier credit score and the best possible mortgage options.
