Top Ways the Elderly Can Improve Their Credit Scores
We are aware of some of the things that come when you age. Some of these things, you don’t really welcome such as the aches and pains associated with aging. However, there are some things that you cannot avoid, even when you are at that age of retirement. When you are getting older, though, you may have already improved your credit to show a better credit score unless things have occurred in your life to say otherwise. If you have low credit scores at an older age, there are certain things to do to improve it. Let’s explore.
Should it be a Concern?
However, first, do you think that you should be concerned with your credit score after retirement? You should because you still have debts unless they were paid off when you stopped working. It is possible that you may need to buy a new vehicle in the near future, which would also mean car insurance. Your utility company may have to check your credit score if you moved to a new location and needed power turned on. Therefore, it is safe to say that you would definitely need to repair your credit score for those and other reasons.
Repairing Your Credit Score
So, now that we have gotten that out the way – that you do need to repair bad credit at any age, let’s look at several strategies to get that done. First, don’t worry about the age. Remember, credit bureaus and creditors don’t care about age. Your credit report is not aware that you are 25 or 66. Your credit report reviews only the age of your open accounts and your debts. The length of time shown on your credit report of timely payments made will usually positively reflect on your credit history. As you continue to improve your credit score, you can work on making timely payments.
It is important to ask for copies of your credit report from the three major reporting agencies, namely Experian, Equifax and TransUnion. There is no cost to getting copies of your credit report. Once you get your credit report, it is time to go through it meticulously. If you are unable to do so, ask a family member or friend to sit with you and help you. You should be looking for any errors on your accounts. If you find errors, file a dispute with the creditor and the credit bureau, but be ready to provide proof.
Your credit report should provide your credit score or FICO score as it is sometimes referred to. A FICO score of 600 and above is decent, but these days, financial institutions see scores of 700 and above as good enough to offer credit. So, try to improve your credit score to 700 and above.
Small and Large Debts
On your credit report, you may see smaller debts or bad debts. Try to pay those off first and then concentrate on paying down the larger balances. If you are overwhelmed by this process, speak to a financial advisor or credit counselor.