I firmly believe that credit scores define a person.  Why? It is because your credit score is often the basis for almost everything you do in a normal, adult life. Even in a simple case of renting a condo/apartment or house, your future landlord may ask for your credit score or credit report, or perhaps your daughter or son’s, if they are your guarantor. This scenario may not be suitable for seniors especially when most of us already own our homes, but I bet the next one is as familiar as the skin tags around your neck! That is, loans and mortgages!
Good credit standing or credit score means the best deals in town. It means faster loan approval and lower interest rates. On the contrary, bad credit score means higher loan rates—that is, if you are lucky enough to actually have someone trust you with their money at all! Bad news is, sometimes, we tend to entirely forget about our credit score or credit standing up until the time we need ‘em—and yes, by that time, it’s too late to even fix it!
Innocent mistakes sometimes cost us our good credit score, so we really have to be careful and learn, as much as possible, what habits we have that can affect our credit standing. To protect our credit score, we need to be very vigilant about these things:
·    Check your credit report regularly. By keeping track of it, you are sure there will be no discrepancies and errors on yours. Of course, if you spot one, seniors should report them at once and see to it that your reports are corrected. You can either get them online for free or request a hard copy for a minimal fee.
·    Pay your bills ahead of time or at the very least, on the exact same date as your due date. You don’t have to pay the full price indicated on your bills, just the minimum amount due would do just fine. However, please be aware of clearing dates when paying, especially when you are not paying cash or paying somewhere else besides the lending company.
·    Examine your credit cards closely. If you need to close a credit card, choose one that is fairly new with low credit limit. Take note that your credit card’s age plays a very essential part in your credit score. The older is your account, the better.
·    Keep your credit charges just below 50% of your credit limit for each card you own. Consider this as your personal limit. If you somehow managed to exceed this number, do try to pay them down before using the credit card again.
·    Maintain a good credit history. Good credit score means you’re paying your bills just like a normal, law-abiding citizen would. For a credit score to materialize, you need a credit history. This is not possible if you refuse to use a credit card, or if you always pay in cash.