No one wants to retire with a poor credit score – but when the current US public debt stands at 14.17 trillion dollars, it can sometimes feel like debt is for life.
In reality, this isn’t the case at all. Credit scores tend to improve as people get older, making it easier for people over 50 to retire with excellent credit so they can set new financial goals. This will benefit you in numerous ways during your retirement; for instance, it will make it much easier for you to get a car, rent a home or take out a loan. Here are three things that you need to do so you can retire with an excellent credit score.
Remove collections from your credit report
If you are trying to improve your credit score you should remove collections from your credit report. Industry insiders Crediful say that having one or more collections attached to your history can stop your credit score from improving, so even if you are clearing your debt your score may still be poor. However, it is important to be aware that there are numerous rules when it comes to statutes of limitations and when the collection happened, so it is important to find out more about your own collections before taking action.
Change your credit focus
As you pass 50 your focus should be on paying off any major purchases or debts so that you can save for retirement. Start by paying off any outstanding debt to push up your credit score, and then start to work on any other debt such as a mortgage. This will significantly improve your credit score, and it means that you will be saddled with less debt when you are retired.
Get rid of unnecessary cards
Go through your credit cards and get rid of any unnecessary cards, such as store cards. These cards often come with high interest rates, and they encourage you to get into even more debt. It can also be quite difficult to keep up with the repayments if you have more than one store card, and if you miss a payment this will affect your credit score.
If you follow these tips you will be able to improve your credit score so that you can retire with excellent credit. This will make your retirement significantly easier and less stressful!