4 Reasons to Maintain a High Credit Score Even Post-Retirement
“Retirement may be an ending, a closing, but it is also a new beginning.” – Catherine Pulsifer
Retirement is a prize for the years you spent working and time to do things you always wanted to do for yourself, but couldn’t. Despite all the planning for the life post-retirement, many of us often forget about our credit score, as it is usually perceived as the last thing to be bothered about during old age, which is far from being true. Fact is; a good credit score is not only important for youngsters, but also for retired people. Those who are stepping towards retirement and have a low credit score must take concrete steps to fix poor credit score. Here are a few reasons why you need learn how to fix your credit score, if you are to retire soon.
Loan Refinancing
We all dream of a debt-free retirement, still a large number of US citizens continue to carry various types of leans even after retirement. A recent study by Strategic Business Insights shows that approximately 40 percent of the households headed by individuals aged between 60-64 carry a mortgage. If you too have an outstanding mortgage, a good credit score might bring some relief to you. Borrowers with a good credit score may negotiate refinancing with lenders, which may result in a significant reduction in the monthly payments.
Credit Card Rewards
Premium credit cards may get you great rewards, which is one of the reasons why many people use plastic money for everyday purchases, post-retirement. When you have a high credit score, you have better chances of getting approval on premium credit cards that entail extensive rewards and other perks. It is, however, essential to pay-off the balance every month, well within the stipulated timelines, in order to avoid paying large sums in interests.
Second Professional Inning
Retirement for many people means using their time to do things they love, which often leads them to explore their interests on a professional level. In such cases, though there may not be the need of a huge capital investment, you may require financial assistance to fuel certain endeavors. If you are planning to secure funds for a second career, a good credit score helps in getting loans at lower interest rates.
Risk of Identity Theft
Retired individuals usually think that their credit score ceases to matter after they stop working, and discontinue monitoring their credit scores. Ironically, senior citizens are more likely to be victims of identity theft than youngsters, which makes it more important to regularly monitor your credit score. Even if you don’t plan to use credit ever again, it is advisable to keep a tab on your credit score to check any suspicious activity or errors.
A Few Last Words
It is essential to learn the ways to maintain a high credit score, or fix a low score, to ensure a stress-free post-retirement life. Age doesn’t impact the credit score, which means that retirement isn’t going to hurt you financially. It is important to start planning for retirement a few years in advance, which will ensure smooth post-retirement life. Remember, actions such as making delay in payments and closing a credit card account might increase the credit card debt-to-limit ratio and lower the credit score. Should you wish to learn more about how to fix poor credit score, get in touch with one of our consultants for a no-obligation free consultation.
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