When you first received your first credit card, you’ve probably been advised by your finance-savvy friend that keeping a good credit score is an ingredient to your financial success.
So, you always paid on time, kept your credit card balances low, and refrained from applying to new cards when you don’t need to.
Fast forward to 2020 and you managed to keep your credit score clean.
However, good credit standing doesn’t end when you reach retirement age. Sticking to smart spending habits will reward you more in your twilight years.
- Support your children (or grandchildren) financially
Property inflation prices in America are real and prices are growing. If you want to help your children or grandchildren get a foothold on real estate, a good credit standing will help you get approved as a guarantor for your child’s bank loan. Good financial standing is a criterion for banks to see if you are fit for a loan.
- Diversify your investment portfolio
If you are planning to diversify your investment portfolio, applying for a bank loan is one way to get the funds you need. However, banks put greater requirements on retirees because of the lack of a regular income stream. But a good credit score will help you get approved for an investment loan.
- Get discounts on financial products
Are you relying on pension benefits or your savings? To prepare for unexpected costs like emergency medical care, applying for a credit card is a good idea.
A good credit score will not only increase your chances of getting approved by your bank, but you also have better chances of getting discounted offers on credit cards or loan products.
What are your best tips in keeping your credit score high? We’d love to know!