There is no doubt about the fact that in today’s society, having good credit is most important. But is it equally important for a person who has crossed 50 years of age and you’ve established your credit for yourself? Does your credit score still matter even if you don’t need student loans or car loans or mortgage loans?
Well, the majority of the financial planners and analysts are of the opinion that credit score is a number that matters at any age. None of us have an inkling of when the unpredicted can occur in our family. There might arise a situation that may compel you to get back to work or to financially back your child or even cosign a loan. These are situations that would trigger inquiries to your credit. Let’s check out few valid reasons why credit scores and reports are still vital for retirees or for baby boomers that are approaching retirement.
Reason #1: Credit scores can have an impact on employment
Just because you are a retired person, that doesn’t guarantee the fact that you won’t have to ever work again. There are several hopeful retirees who gleefully enter their golden years only to realize that there is still a need for them to work and earn money. Whether you like it or not, your credit report will certainly be one of the main factors that will be taken into account when they hire you. Employers will check your credit report to know what kind of a financial person you are.
Reason #2: Credit scores have an impact on your homeownership rights
Now that you’re retired, you may have the urge to downsize into a new smaller home so that you have lesser space to maintain. What if you don’t have enough funds to purchase your new home? You would have to apply for a mortgage loan then and this is where your credit score comes in. The mortgage lender won’t give you any money if you have a poor credit score.
Reason #3: Credit scores can have an effect on assisted living
Do you think you would need assistance with your regular activities? If answered yes, it may be time for you to shift to an assisted living or to a nursing home facility. Here too you need to keep in mind that your monetary health will play a vital role in your capability of paying for the care. There are many who don’t realize that such facilities aren’t covered by Medicare and hence you’ll require making private payments. So, check your credit profile before taking the plunge.
Reason #4: Credit scores impact driving
Even though you may still be in great health to drive your own car, your car might not have aged properly. In such a case, you would require a new set of wheels to travel around. Majority of the auto insurance companies determine your credit rate before deciding the interest rate on your auto loan. Therefore, if you’re still in doubt regarding the importance of your credit score during old age, you must have got your answers.
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