Even in your golden years, your credit score still stands as one of the most important factors in one’s life. You will need a good credit score if you are planning to get a mortgage or perhaps a new car and, of course, loans—which tends to be a “jack-in-the-box” kind of thing in a senior’s life. Yes, obviously your credit score needs to be protected and nurtured as long as you live!
And indeed you have every responsibility to do so, unless you want to spite your stubborn son or daughter and give them a major headache in figuring out your debts! Aside from that, you need to maintain a good credit score if you are currently single in status and now looking forward to marrying again. This, you also have to check with your potential partner prior to marriage since it can seriously affect yours once married.
Alarmingly, according to a study conducted by AARP, the senior citizen group is the fastest growing in terms of credit debt. That alone shows how seniors are faring amidst the economic crisis and clearly, it’s not good. But, if you have been a good boy or girl and vigilantly keeping an eye on your debts and credits, chances are, you are now enjoying its benefits. One of the advantages of having a good credit score is of course, hassle-free loan eligibility which means you don’t have to wait too long for it and no need to forward 101 documents to have it granted. Also, keeping a good credit score means you will be able to enjoy lower interest rates as well as compared to those who are not too careful of their debts. These things should be reason enough for seniors like us to maintain a high credit score so that when the time comes that we need a loan, it won’t cost us heaven and hell to get that kind of money!
Contrary to public notion, your credit score does not depend on you being debt-free all your life. In fact, if you don’t own a credit card, now or even then, chances are, you don’t have any credit record in any agency. No credit history means no credit score for you sir, hence nothing to look at in case you apply for a loan. Chances are, your application will get rejected by the lender. Also, if you were a plain housewife and your husband did all the transactions in the past, don’t expect the authorities to be keeping track of your “neighborhood store” debts. In other words, these loans and debts need to be legal, binding and a pack made with authorities, something that can put you behind bars if you don’t pay up!
The easiest, most convenient way to improve your credit score is by using your credit card at least twice a month. This way, your name will be charged with a small enough amount that you can pay right on its due date. Just make sure you make the payments right on time or else, it will lower your credit score. As much as possible, stay within 25% of your maximum limit and keep old credit card accounts with you as it will prove you pay well. Small loans are also okay, just to keep everything running. Consider these things as an investment, even if you don’t really need them now.