Good credit is important no matter what stage of life you’re in. Credit scores can impact many areas of life after retirement including the ability to refinance a mortgage, obtain an auto loan, lower insurance premiums and apply to enter an assisted living facility. Following are a few golden rules for maintaining good credit in your golden years.
Have at least one credit card
The trick is to use that credit card but pay off the full balance each month. That way, you’re charging only what you can afford.
Make sure the credit card is in your name
Spouses who never signed for loans and never had credit cards in their names may not have a credit history. This becomes an issue following death of the spouse or divorce. That’s because married couples don’t build credit together. Everyone should have a credit card in their own name to build credit themselves.
Guard your cards
Make sure you keep your credit cards in a safe place. Someone doesn’t need to have the actual card to make on-line purchases. Cell phones have made it easy to steal card numbers by taking a photo of the front and back without taking the physical card.
Refuse to co-sign
Do not put your finances at risk by co-signing a loan or other form of borrowing. Perhaps it’s true that your grandson is having a hard time building credit as an unemployed 22-year-old. But co-signing on any loan, even for family or friends, puts you at risk.
Be vigilant for ID theft
Identity theft can happen to anyone at any age, but we older adults are particularly vulnerable. Monitor your credit report for accuracy and your credit score.
If you would like help setting up a system to streamline payments, track expenses or review your credit reports Surrey’s Personal Finance Manager can help. Call 610-647-9840 to find out about this fee-based service can help.
Jacky is Surrey’s Personal Finance Manager. She is an active member of the American Association of Daily Money Managers.
