5 reasons good credit is necessary for retirement
ood credit is necessary for a lot of things in life, from buying a new house to ensuring your retirement goes smoothly. Fortunately, by the time most of us retire, we’ve had decades to work on getting a good, if not great, credit score! Here are five reasons a good credit score is useful when you retire.
Acing credit checks
All sorts of companies run checks on your credit and that doesn’t change when you retire. A person whose credit score isn’t so good may find it affecting them in surprising ways. One of the biggest things it can affect in your retirement years is the cost of insurance; a better credit score can mean cheaper monthly payments!
Making home repairs
As you get into your retirement, you may be somewhat less able to make your own home repairs. This means you’ll need to pay someone else to do them for you, which can get very expensive. Having good credit can make these types of emergencies more affordable and easier to pay.
Maintaining your mortgage
Having a good credit score is necessary to keep the payments on any loans you have as low as possible. This is especially true of the mortgage on your home! You’ll want to be able to keep this, and other loans, as cheap as possible during your retirement so they don’t take too much of your limited funds.
Paying for long-term care
In the event you or your spouse needs to be put into a long-term care facility, you will need a good credit score to ensure you can pay for that help as long as it is necessary. A bad score here could mean having to be cared for by somewhere that isn’t top-notch.
Oftentimes, when a young person is trying to apply for their first big items (a house, car, etc.) they will need a co-signer on their agreement. The co-signer needs to be someone with a long credit history and a good score, which is why many people turn to their parents or grandparents for help with this.