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Why your credit score matters even in retirement

By: SavvyMoney

Your credit score — that three-digit number you’ve been working so hard for so long to keep sky high — is always going to matter. Yes, even in retirement, you’ll need to be concerned about your credit score. Here’s why.

No matter what age you are, if you’re making a money move, there’s a good chance your credit score will come into play. Let’s say you decide to refinance your mortgage. Your credit score will be a factor. Maybe you want to downsize your home. Same thing — the better your credit score the better rates you’ll receive on loans. Maybe you want to move on from a SUV or a minivan to that dream car you’ve always wanted. Depending on where you live, your credit score may impact your auto insurance rate.

It’s not just typical credit checks that should keep you on your toes about your credit score. There are retirement-specific items as well. Perhaps, as you get older, you need to move into a long-term care facility — sometimes called a continuing care retirement community (CCRC). As Money notes, these companies will pull your credit because they want to know that you have the financial stability to pay their fees. Also, should some unexpected medical bills become too much to handle, and you need a loan…you guessed it. Another case where having a high credit score will behoove you.

The good news, of course, is that keeping a high credit score isn’t rocket science. Pay your bills on time, maintain a long credit history and keep your credit utilization low. In other words, keep doing what you’re doing. Even in your golden years.

Budgeting, Financial Planning, Mortgage, Personal Banking