Credit, like many things in life, evolves with age. At each stage of your life, the importance varies. When you are young, you have clear credit goals. You work towards debt management and building good credit for life’s milestones like car loans or mortgages. However, in your retirement the need for good credit is different. It might be unclear especially if the house and car are paid off, you’re downsizing and there’s no need to acquire more credit. Although, there are plenty of reasons to maintain good credit in retirement.
Why Do You Need Good Credit In Retirement?
Here are some reasons as to why you need good credit in retirement.
1. Your second career:
If you have waited until you retire to truly pursue your passion, you need funds to get it off the ground. If you are relying on creditors for these funds, then your credit check is an essential part of the process. Keeping a good personal credit record can be helpful in qualifying for business start-up loans and helping to fund a second career.
2. Saving money:
When you solely depend on your retirement savings, refinancing your mortgage to save money may come as a blessing. This is another reason why you need a good credit score in retirement. It can also help you snag a lower insurance premium if you need to switch providers.
Downsizing is a common phenomenon in retirement. However, you will need good credit in retirement to receive the best rate on your new mortgage.
Retirement for some is all about exploring. And there are many travel rewards cards to help you earn points to pay for those trips. However, you will need to maintain good credit in retirement to qualify for those cards. Those who maintain good credit scores have access to credit cards with the best rewards features, allowing the ability to travel and offsetting some costs of airfare, fees, and other items.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.