By the time we reach retirement, we have likely been around the block a few times. We know the way through our finances and saving, because we currently use those wise financial decisions to live well. However, that doesn’t mean that from the moment you retire you should stop making wise financial decisions, or even trying to gain new financial incomes.
One of the common feelings of those in retirement is that their credit score is no longer relevant. By this time they have often worked hard enough to provide themselves with a home they now own. As well having purchased most of the larger products they are interested in. However, that doesn’t mean that this simply stops your credit score interest, and actually, you may be in the most prime position to keep these accounts active and open.
One often overlooked aspect is that insurance companies use credit scores to determine the rates they charge. Maintaining a high credit score means lower rates for home and auto insurance. I’d like to discuss this in detail, but for some more insight and further reading about the benefits of credit cards and what they mean to you, check out the reviews.creditcard site. Information is always power, and with financial awareness, this goes tenfold.
Without further ado: Credit Score Tips For Your Retirement
Keep Credit Balance Low
Despite living off a pension fund and/or your portfolio, sometimes it may feel tempting to make large purchases on your credit card to acquire that hot new product you can’t stop thinking about. However, this can open you up to a whole host of problems, such as overdoing your credit limit. When your retirement income is fixed and limited, it can be harder to pay this off, as doing longer hours in the office or selling items aren’t easy considerations as they used to be.
For this reason, making sure you keep your credit balance low and under the credit limit will keep your accounts happy for longer. Try to limit yourself with big purchases, but don’t be afraid to spend on the little stuff. Keeping the accounts and dynamic in this way, such as using them to complete grocery trips, can help you stay favorable with your credit provider. Not only that, but if you pay off your credit card balances monthly for the little things you must buy anyway, many credit cards pay rewards cash or travel points back to you. Not only that, but if you pay off your credit card balances in full monthly for the little things you must buy anyway, you pay no interest and many credit cards pay rewards cash or travel points back to you.
Keep Accounts Active
It might feel tempting to close the accounts you don’t need, and this can be a good idea. However, don’t do it with abandon. A life spent building up these accounts can often mean that throwing away your progress can harm your score, and you’ll never know when you’d like to finance a new phone bill or replace your worn out car. Positive age is a virtue for your credit report, so don’t be too quick to throw it away in these instances.
Also, keeping these accounts open will maximize and grow the limit of credit you can have, as you become a valued customer in the eyes of the provider. The elderly are the most likely to be conservative and keep up with their payments, so they are often given the most attractive deals. If you’d like to close your accounts, consider opening another with an ‘over 60’s’ credit union, as they usually offer some of the best interest rates you can find anywhere.
With these tips, you’re sure to keep great financial sense well into retirement, living your golden years with a peace of mind and security you could only have imagined in your youth.