What are some Tips Retirees Should Do Know About Their Credit Scores
In retirement years, purchases such as insurance, cell phones, renting cars using a debit card, buying cars or even an application for a reverse mortgage may require a strong credit score. Yet many retirees become debt free, causing their credit score to go to zero or stop paying attention to their credit score if they don’t need to borrow money.
Most people who are retired have pretty great credit and its important to them to keep it that way, why should they do to maintain good credit?
With data breaches happening routinely— retirees need to stay vigilant about their credit profiles. And it is easier than ever to monitor your credit score with websites Experian. Equifax or TransUnion. There is a small monthly fee and typically you can get this service for a little as $5 per month.
That may seem counter-intuitive, particularly to those who pay off their homes, cars and other debt by the time retirement is on the horizon. Retirement itself, in fact, doesn’t hurt a credit score directly.
No borrowing money can reduce your credit score to zero in as little as 2 years because payment history over the past two years — or the lack thereof — is the biggest determinant of a credit score. The length of credit history, where most retirees can really shine, carries less than half the weight of the overall payment record.
Here are the Top Tips Retirees Should KNow About Their Credit Scores
1) If you Do not Want to Borrow Money, you can Use the Experian Boost Program to Add Utility & Phone Payments to Your Credit Score
Retirees can use this to get credit for their on-time monthly payments for utility and phone payments without borrowing money.
2) Consider Freezing Your Credit
If you’re retired and don’t plan to move or buy a car in the near term, this may be a good time to put a freeze on your credit with the three main bureaus, Equifax, TransUnion and Experian. If you do this, creditors can’t access your information until you remove the freeze with a PIN number. So, keep that number in a safe place.
3) Close OLD Accounts
A lot of credit experts tell consumers never to close credit accounts because it can hurt scores. It may for a few months, However, if you’re not planning to buy a house or a car in the next six months, cleaning up orphan accounts may be a good idea now, he said.
4) Monitor Your Credit Carefully if You Plan to Get A Reverse Mortgage
If you’re thinking about a reverse mortgage, where a lender provides funds to homeowners 62 and older that are tied to home equity, be aware that your credit history is now part of the equation.
5) Avoid Co-Signing on Debt
I know family is everything, however, you would not believe how many retirees I speak to that have their credit scores destroyed and are responsible for debt they co-signed on for family members.
As Promised, please click on the link on the screen to order your FREE report on the
… Top Things Retirees Should Do to Protect Their Credit in Retirement
Please click on the link on the screen
Or call our office – 719 301 1802
and If you like this video, please, like and share, click on the Bell symbol to get more of these tips on how to sell a house. I’d love to read your comments on this information. Thank you for watching!
www.RetireeCredit.com
