4 Tips to keep your credit in the pink during retirement

Generally it is found that the retired people have better credit than the young citizens of the country. It happens because of their long credit history that helps them maintain a decent score. When the question comes to fitness of easy finance, the retirees are found to be more fit than the young people. At this period most of their debts are already paid off and they are in a better financial position than the youngsters. But it true that it is essential for a retiree to maintain a healthy credit score so as to reduce the auto, health, home and other insurance premiums. Since you have live on limited earning try to follow some tips that will keep your credit score shine during your retired life.

1. Mix and combine your loans:

Are you aware of the fact that retirees can score extra points if they take out various types of loans such as mortgage, credit cards, auto loans and many more. They earn extra points as rewards so as to manage their finance efficiently at the end of their life. Don’t close your accounts suddenly as it can affect your credit score. Hence you must keep your accounts open and maintain them responsibly.

2. Stay away from becoming a co-signer:

Retirees often co-sign on the student loans for admitting their children to good colleges. They want their children to succeed in life. So, they are ready to become a co-signer on the student loans. Although it is a noble thought, yet the retirees should think twice before taking such a step. If their children are unable to pay off the student loan, then the lenders will catch the retirees. Their credit score will suffer due to the increased debt load.

3. Keep your cards active:

Like the way excess use of credit cards is harmful, not using your credit cards can also ruin your easy finance. If you don’t use your credit cards there will be no activity on your credit reports. As a result your credit score will not increase and you lender can terminate the account for several months. This will hurt your credit score badly. Hence you must use your credit cards at least once a month.

Thus, you can follow the above mentioned tips to make your retired life happy and fruitful.