Credit Tips for Those In or Near Retirement

As you begin to approach retirement, you’re typically concerned with your savings and trying to make your money last.  But sometimes just as important is making sure you have and maintain top tier credit scores.

The credit bureaus don’t know your age and they don’t know your income, so when it’s time to walk away from that job, the act of retirement won’t have any affect on your credit scores.  There are, however, a few things to keep in mind.

Don’t Close Accounts

You might assume that since you are retiring and will be living on a fixed income, you won’t be needing all of your previous credit cards and department store cards.  However, some of those cards may have 20-30 years of good credit history.  Closing them could make your credit scores go down.

Fix Your Credit Before You Retire

If you do have negative items on your credit report, it would be smart to fix them before you retire.  Why?  Because if your income will be decreasing during retirement, the last thing you want is to pay higher interest rates if you need to finance a car or perhaps refinance your home down the road.  Also, you’ll likely be using less credit after you retire so it could take those scores more time to improve on their own.  A few months of credit repair prior to retirement could make a big difference in your upcoming retirement budget.

Be Careful About Co-Signing on Loans

You probably have adult children by now and adult children tend to do things like buy homes and cars.  Often they need a co-signer in order to qualify for financing.  If you elect to co-sign on a loan for your child, just remember that you will be just as responsible for that payment as your child is.  If he/she fails to make a payment or becomes delinquent, your credit scores will suffer and creditors could start calling you for payment.

Monitor Your Credit

Unfortunately, retirees are big targets for identity theft and if you fall victim to it, it could affect your credit and a lot more.  Check your credit report at least one a year to make sure there aren’t any fraudulent items on it.  Report any discrepancies immediately and if you need assistance, we can help!

You’ve worked hard your entire life to arrive at this moment, don’t get complacent and let your credit suffer now that you’re earned the reward of retirement!