Once you retire from Lockheed Martin, your credit score and history will still be important. Like many others, you have worked to save and pay off your mortgage. You may have no plans to borrow money ever again, but you should continue to monitor your credit report and rating to make sure there are no issues with either of them. By not doing so you run the risk of having unexpected problems later in life.
Did you know that your credit rating can drop during retirement? Yes, the truth is that the score normally declines for most people as they get older… even if they have an excellent credit history and solid assets.
Why is that you may ask? Here are two of the primary reasons:
- Credit is used less.
- Debit cards are used to pay cash for purchases, which do not help maintain your credit score.
- Credit report activity becomes “thin” and could almost disappear.
Why is a low credit rating a problem?
At the onset of retirement, you may plan to never borrow funds to make a large purchase ever again, but eventually, you could decide to downsize to a smaller home, purchase a new car, or have other credit needs. Your credit is viewed and used for decision-making in not only for borrowing but also for other reasons such as:
- Any credit cards, loans, or mortgage lenders will review your credit.
- Any real estate rental or management companies will want to see your credit.
- Utility companies also review your credit.
- Home and auto insurance companies look at your credit to determine your premiums. Lower scores can lead to higher premiums.
Can you raise your credit score without incurring debt? Sure, you can! Here are some ideas to help:
- Every few years, request your credit card limits be raised by $500 to $1000. A higher limit with a low balance equals an increased score.
- Don’t close old accounts, even if not used, for the same reasons mentioned above. More available credit with a low balance equals an increased score.
- Keep your primary credit cards active by occasionally making a small purchase and paying it off the following month.
- If your credit has completely lapsed and you no longer have any credit cards, you can start rebuilding your credit history with a secured card from your bank.
- Be sure to review your credit report annually to be sure there are no errors on it. You can visit www.annualcreditreport.com to obtain a free copy of your report once per year from each of the three major credit-reporting companies: Equifax, Experian, and TransUnion. You can also sign up for a free account at www.CreditKarma.com to keep tabs on your credit score.
By taking the above steps, you can not only protect your credit and monitor your credit reports regularly, but you’ll also be protecting your future retirement lifestyle. Remember, that just because you are retired, you don’t forget about these simple precautions. To learn more tips like this for planning for retirement, give us a call today at 817-210-3444 or click HERE to book a complimentary consultation with one of our Lockheed Martin specialists.
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