From living in his car to a 756 credit score: How one veteran rebuilt his finances

By Genna Contino

'Taking off the uniform does not reset a family's finances'

Young veterans in particular are more likely to fall behind on debt payments, such as auto loans, in the months following their separation from the military, according to USAA.

For eight months earlier this year, Terrance Adams squeezed his 6-foot-4 frame into the seat of a Dodge Charger every single night.

The 40-year-old Army Reserve veteran, who served more than six years as a signal switchboard operator, was working full time, but landlords kept slamming the door in his face. He said he could afford to pay rent, but his income and credit-score requirements were holding him back.

"They're asking me for three times the rent. They're asking the co-signer to make five times the rent, and I don't know Jeff Bezos," said Adams, who lives in New Jersey. "That extended what I thought was going to be a couple of weeks of sleeping in my car to a few months."

While Adams ultimately turned his financial situation around, his experience illustrates an often invisible trap that awaits many service members when they step out of uniform.

For Adams, a turning point came when he connected with Soldier On, a nonprofit working to end veteran homelessness that paired him with a financial counselor at Money Management International. Together, they worked to repair his credit profile - disputing incorrect records and using a tool that reported his on-time payments for streaming services and his cell-phone bill to credit bureaus. He left his job at Home Goods for a higher-paying job at the post office.

Army Reserve veteran Terrence Adams got a new job at the post office this year and was able to secure housing after living in his car for months.

When Adams began working to improve his credit in April, his credit score was in the 500s. By October, it had jumped to 756. Prime credit score in hand, he bought a more dependable car and finally signed a lease for his own place. He got the keys on Nov. 1.

On paper, veterans often appear financially secure, outperforming civilians on key long-term benchmarks. Thanks to programs like Veterans Administration home loans and structured military savings systems, veterans have a higher homeownership rate than the general population (78% versus 65%), according to the USAA Educational Foundation, and they have roughly three times more in median retirement savings.

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However, accessing those benefits is rarely seamless. Navigating VA benefits is a major challenge for 62.3% of veteran families, according to a Military Family Advisory Network survey, and that friction coincides with the abrupt end of active-duty subsidies like tax-free grocery shopping on base and housing allowances. And despite veterans having a lower unemployment rate than nonveterans in 2025, nearly 60% feel underemployed after transitioning to civilian life, Penn State's Clearinghouse for Military Family Readiness reported, citing the Veterans Metrics Initiative.

"A veteran can be counted as employed while working well below their experience and capabilities. That can limit their ability to pay down debt, rebuild savings and establish financial stability," said Shannon Razsadin, CEO of the Military Family Advisory Network. "Taking off the uniform does not reset a family's finances."

Young veterans in particular are more likely to fall behind on debt payments, such as car loans, in the months following their separation from the military, according to USAA.

Part of the financial shock when leaving the service comes from the sudden disappearance of built-in military subsidies that help protect household budgets when a soldier is on active duty.

"Something as simple as no sales tax on commissary groceries can make a difference, especially with the cost of living today," said Krystel Spell, manager of military programs at America Saves, a Consumer Federation of America initiative. "Then you have the expenses that come with settling into civilian life. The military may cover that final move, but there are still costs associated with establishing a household, finding employment and adjusting to a different income."

Service members often turn to credit cards or personal loans to stay afloat, which "can turn into long-term high-interest debt if their new income cannot support the payments," said USAA advice director Eric Bruns.

From the archives (November 2023): How to retire from the military and not settle for just any old job

In Adams's case, he said his credit score sank after a woman he was previously in a relationship with used his credit as an extension of her own. Because he never knew to look into his credit profile, he didn't realize there was an issue until he started shopping for a car.

"You don't know what you don't know," said Adams, who added that he wishes the organizations that exist to help out veterans in tough situations were more widely known. He discovered Soldier On while living in his car and searching for resources to help him get out of that situation.

"You can't be a passive passenger to your own credit story," Adams said. "You have more power than you think. ... All you need is someone to point you in the right direction."

Need help with a career or money-related problem in your life? MarketWatch's Dollar Signs advice column is here for you. Submit your questions anonymously here or write to us at dollarsigns@marketwatch.com.

-Genna Contino

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