Retirement and Your Credit Score- Does it Matter?

Written By Guest Post
Last updated October 13, 2020

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October 13, 2020

Simple. Thrifty. Living.

Throughout your lives you strive to keep a good credit score. It affects many things you will attempt to do financially, such as buy a house or get a car loan. But when you retire, do you still need to worry about having a good credit score? It really depends on what your retirement plans are.


If you don’t plan on moving, have already paid off your mortgage, or planning to purchase a new car. Then retirement and your credit score shouldn’t be a huge worry.  However, many financial experts agree that it’s important to always maintain a good credit score. Even in later stages in life and retirement.

Unplanned Financial Decisions

While you may not think you’ll need to make any financial decisions later in life that require purchasing power. Circumstances may change.  While you may not necessarily be purchasing a new home or a new car. For example you may get the travel bug. In turn, you may want to apply for a new credit card that offers airline miles or cruise ship points. When applying for a new credit card, a good credit score is vital to obtaining a approval, regardless of your stage of life.

Keeping your credit score in good standing while retired isn’t that difficult either. Simply continue to pay your bills on time, and keep credit card accounts open and active. You don’t need to use your credit cards constantly, but making one or two purchases a month (and then paying off the balance each month) will help you to maintain your good credit score.

It’s important to have some credit card activity, because a lapse of recent activity could actually cause your credit score to fall over time. Making a purchase here and there with a credit card gives the credit card bureaus some record of continuous activity to base your credit score on.

Other reasons you’ll want to have a good credit score during retirement are for situations you may not have anticipated. For example, you will probably be subject to a credit check if you or your spouse moves into a retirement community, assisted living community, or a long-term care facility.

There may also be situations that arise in which you need to take out a small loan to pay for unexpected expenses, such as a large medical, home or car repairs, or even to help with the wedding expenses of a child.

That’s why it’s important to always maintain good credit during retirement. Life can often bring unexpected events and situations, and having a good credit score during retirement will ensure that you are somewhat financially prepared for any events in which a credit check may be required.

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