Even if you’re retired, it’s a good idea to monitor your credit score

Even if you’re retired, it’s a good idea to monitor your credit score

My income and spending are the same every month now that I’m retired. Is it still necessary for me to keep track of my credit score?

The federal Consumer Financial Protection Bureau advocates checking credit scores regularly at any age, but especially for seniors, who are more vulnerable to identity theft and fraud. Credit score adjustments that are unexplained are warning indications of these crimes.

Schedule your payments

The longer you’ve had credit, the higher your score is likely to be. You may use PaydayChampion to assist you with loans and you should pay the loan that you will get on time. We will help you in improving your credit score.

Determine how much is owed and the interest rate on each credit card or existing loan to improve credit scores, then pay off the highest-rate accounts first. Because income and costs in retirement are frequently consistent from month to month, we recommend setting up automated payment plans directly from bank or credit union accounts. You can schedule payments to individual creditors in advance to help you stay on top of bills and avoid late payments, damaging your credit score.

Furthermore, according to AARP, you should not rush to liquidate old accounts. 15 percent of your credit score is determined by the age of your oldest and newest credit accounts and the average age of all accounts. It may be worthwhile to keep old accounts open if you aren’t paying annual fees on them. 

Increased data theft

Unfortunately, data breaches have increased the prevalence of identity theft and fraud by exposing the personal information of millions of people. Criminals have been known to steal Social Security numbers and birth dates. Unlike credit card numbers, this type of personal information cannot be simply changed, emphasizing the importance of fraud and identity theft prevention.

Checking bank and credit card statements, fraud alerts with account security freeze options, identity theft protection programs, and, of course, credit score monitoring are all ways to protect critical information from misappropriation. Annualcreditreport.com offers consumers a free credit report every 12 months to check for errors or fraudulent entries.

Always stay alert

Experian, TransUnion, and Equifax are the three major credit reporting companies in the United States. When reviewing your report, look for any unidentified entries and double-check that your personal and financial information is correct and full.

Credit ratings are likely to fluctuate with big credit purchases, new loan applications, or any other access to available or new credit. Many retirees, for example, downsize or right-size their homes, which typically necessitates a new mortgage. To qualify for the best rates, make sure your credit scores are optimal for you by correcting any inaccuracies on your credit reports.

Minimize debt

According to Experian Credit Bureau, one simple strategy to boost a credit score is to minimize debt. Avoid using credit cards for everyday payments because they are revolving around credit. 

You can avoid debt by keeping the balances on these accounts low. Experian also warns that transferring sums between credit card accounts would not solve the debt situation. 

Also, customers should check their credit reports regularly to see if any accounts have past due payments and fines and correct any inaccuracies.

Edward N. Arrington