Why Retirees Need to Maintain a Good Credit Score
If you think your credit score doesn’t matter after you retire, you would be mistaken. According to an article by MoneyWise, maintaining good credit is critical, especially for retirees. A solid credit history can make it easier and more affordable to secure a loan should you need to cover unexpected medical expenses or make necessary home repairs. The article points out that “without a good credit score, retirees may find themselves limited in their options and subjected to higher interest rates or unfavorable terms.”
The good news is that most older Americans do have good credit scores. While the average FICO score is 717, baby boomers have an average score of 745 and the silent generation has an average score of 760. Those scores are high enough to secure the best mortgage rate or the best interest rate for an auto loan.
If the cost savings gained through lower interest rates aren’t enough of an incentive to maintain a high credit score, consider that your excellent credit can also provide reduced insurance rates, lower security deposit if renting an apartment or moving into an assisted living facility, as well as credit card perks.
The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. This landmark piece of legislation will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), and increased minimum benefits.
