You know the rules—timely payment, low debt levels, credit mix, old account and good new credit are necessary ingredients of a healthy credit score. Having enough savings for retirement is also crucial for retirees who want to be financially secure after they leave the workplace.
If you want to ensure you maintain a healthy credit, get the best credit and loan deals and live comfortably without fear of outliving your assets, here are tips to consider:
Buffer your retirement savings and investments
Going into retirement without a cash cushion is a terrible idea. You cannot rely on stocks since the market may plummet anytime and you may not have access to liquid cash during emergencies. Having at least enough liquid savings to cover two years of your daily expenses can help you stay away from high-interest loans and credit cards that may ultimately cost you more money in the end.
Pay off your debts
You can request a credit report to check if you have some payment issues that need to be settled right away. Check your oldest and most interest-eating debts. Settle them so you can peacefully save for retirement. Soon-to-be retirees find it hard to save when they know that there are debts hanging over their heads. If you have student loans, credit card debt and any debt — pay them down.
Get a secured card to minimize your spending and rebuild your credit
Do you have a bad credit? It is not good to spend your retirement days in debt, but if you want to get low interest on loans, consider getting a secured credit card.
As you rebuild your credit rating, you can be eligible for a traditional credit card in the near future. It also gives you more spending power as many hotels, travel agencies and transport companies require a credit card to transact business. You can also apply for an unsecured card once you’ve established your good payment record by never missing payments and keeping your debt levels low.
Finally, a secured credit card helps you manage your finances wisely. Secured credit cards have lower credit limits than unsecured cards. That means you cannot spend more than your limits. If you have a problem with overspending, the secured card can help you make selective purchases so you won’t get into too much debt.
Take advantage of credit repair
One of the best ways to keep your credit score healthy when you’re retired is to clean up and repair your credit file. Clean Credit is an affordable, reliable and reputable credit repair option for retirees. It can help you correct legitimate errors on your credit report, verify negative item on your credit report and get them removed, and negotiate with your lenders.
Clean Credit knows the rules in credit repair and will use them to give your credit score a justified bump. Contact Clean Credit to learn more about their services and the instances when credit repair would actually work for you.