The theme this week on the One Minute Retirement Tip podcast is: improving your credit score after age 60

Today, I’m talking about why your credit score still matters in retirement. I think a lot of people think that once they enter retirement that their credit score doesn’t matter so much anymore. If you’re retired, you hopefully have less debt and anecdotally, I just find that the average 65 year old cares far less about their credit score than the average 35 year old. 

But there's a good reason to still care about your credit score in retirement. It still matters for a lot of reasons. Here are just a few benefits of a really good credit score that you may still care about in retirement, according to a blog post from CapitalOne (link to post: https://www.capitalone.com/learn-grow/money-management/benefits-of-high-credit-score/):

1. An excellent credit score can help you get a better rate on your car insurance, home insurance, and other types of insurance. That’s because insurance carriers use your credit reports to help decide whether to approve your application and how much to charge you. Once you’re a customer, they may check your credit to help decide whether to raise your premiums or even deny you the chance to renew your policy.
2. Qualify for a better interest rate - you’ll probably still have some need for access to credit and debt in retirement and an excellent credit score can save you tens of thousands of dollars, since you’ll qualify for a better interest rate. 
3. If you want to apply for a new credit card, like one with those nice perks that all you retirees love, like free companion fares on travel, good credit may also play a role when applying for a new credit card, helping you secure better benefits and rewards. 
4. An excellent credit score is essential for getting approved for higher credit limits. I don’t know about you, but I take comfort in knowing that my credit limit has been increased. BEcause even if I don’t ever think I’ll max it out, there’s security in knowing that I have access to additional funds if I ever need it. This is probably the biggest benefit for retirees who don’t carry much debt - just the added security of having access to additional funds if the need arises. And using less than 30% of your available credit is essential for a good credit score. 

There are other benefits as well, but I think these are the ones that matter the most for retirees, and with 4 big benefits on this list, it means you still have plenty of good reasons to care about your credit score in retirement.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance