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Debt and delinquency after military service: A study of the credit records of young veterans in the first year after separation

This report shows that a sizeable fraction of young enlisted servicemembers go delinquent on debt payments or have severe derogatories (for example, defaults) appear on their credit record around the time they leave active duty. The report focuses on three types of credit accounts: auto loans, revolving credit accounts (credit cards), and personal or retail installment loans. The report also analyzes medical and non-medical debt. These types of accounts were found in prior research to be the most likely sources of delinquency and default among young servicemembers.

The findings show that among those who serve at least seven months, delinquencies and defaults are between two and 10 times more likely to appear on a credit record in the six months after separation as compared to the six months before.

Full report

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