Prepping Your Credit Score for the Old Folk's Home

Retiring with a good credit score can make living out the rest of your days completely carefree, allowing you to tackle larger expenses and loans with relative ease. rnIf you’ve been slacking on maintaining a good credit rating, however, your retirement may not resemble the golden age you were led to believe it would. To help prepare your credit for retirement (no matter how close or far you are to punching the time clock one last time), here are a few tips to keep in mind:rnKeep the debts down rnIf you’ve got too many debts, you’re already doing yourself a major disservice on the road to retirement readiness. rnHaving too much debt on your credit report shows a poor utilization of your debt-to-income ratio, and since how you use your available credit makes up a whopping 30% of your overall credit score, having this blemish show up in your history can make easy-living no easy feat. rnTake the time to reduce your spending as much as possible by refocusing the money you once used to fuel your credit card debts into a retirement savings account.rnReview your insurance needsrnIf you know you’re going to need to make changes to any insurance policies you have in your name (such as home, auto, or life), make sure you make the changes while you’re still a part of the workforce. rnRemember that insurers give the best rates to consumers with the best credit scores, so get to work on improving your credit scores while you’re still getting a paycheck.rnLower interest rates rnAnother benefit to keeping the amount of debt you may have down to a minimum is being able to apply for better interest rates on any loans or large purchases you might be making. Just think about how great it’ll be to be able to take out a loan without paying back twice as much in interest.rnAgain, the better you’re able to handle your credit utilization ratio, the easier this will be to accomplish.rnDon’t stop checking your credit reportsrnIf you’re diligent about checking your credit reports at least once a year, you’ll want to keep at it even after you retire.rnYou’ll especially want to stay on top of your credit information if you plan to travel a lot, as retirees are at greater risk for fraud and identity theft than the rest of us worker drones.rnWant a leg up? Start preparing for retirement now!rnFor those of you nowhere near retirement age, but want to start preparing now so you’ll live like a king later, having a good credit score can seriously impact the type of job you’ll be able to land. rnMany employers feel that your ability to handle credit also reflects your job performance and how readily you’re able to handle responsibilities financial and otherwise. Plus, having a higher paying job means you’ll be able to sock more money than usual away for retirement or paying off debts.rnKeep these tips in mind whenever your mind starts wandering down the “Where will I be in 10+ years?” path, and you’ll have saved yourself some major financial headaches when you’re ready to kick up your heels on the beach till the sun goes down.