Does A Credit Score Matter At Retirement?
You bet! Your credit score at retirement is just as important to your financial well-being as it was during your working life. You put in the time and retirement is your reward for a job well done. Dictionaries define retirement as a stress-free time. The last thing you want to do during retirement is worry. Credit score monitoring during your retirement years could turn into a worry if your score drops too low.
Reasons To Watch Your Credit Score
Your Mortgage Debt
If you happen to enter retirement with mortgage debt you may want to refinance that mortgage some day when rates drop. A good credit score will help you get the best rates available. One of the strongest tools mortgage companies use to gauge the rate you get is your credit score so keep it clean.
Your Insurance Rates
Insurance companies use credit scores to determine your insurance premiums. A policyholder with a high credit score is a responsible, reliable policy holder who deserves lower auto and home insurance rates. You would be surprised how much money you can save on your insurance premiums with a high credit score.
Your Credit Card Rates
Credit card companies also use your credit score to determine what interest rate you will pay on your credit card balances. The best practice is to avoid credit card balances all together but if you are ever in a pinch and need to hold a balance having a high credit score will help keep the interest rate low.
Unless you retire with no mortgage, no credit card debt, no car and no home you need to work on keeping your credit score as high as possible. A good credit score will keep your stress level down plus save you money on mortgage rates, insurance premiums and credit card interest rates.