THE BOTTOM LINE
Your credit rating doesn't happen by itself. It's the
work of a lifetime of good financial habits. Begin
when you're young by paying your bills on time,
avoid borrowing more than you can repay and
keep a watchful eye on your credit report. Those
are the key steps to building a robust credit score.
AS A SENIOR CITIZEN
The kids are gone, the house is paid off – or close to it –
and the student loans are a distant memory. You probably
don't need as much credit now as you did when you were
younger, but don't cancel your low-fee credit cards. That
card you've had for 40 years tells potential lenders that
you are a person who knows how to handle debt. You get
the best rates on loans and credit cards, lenders are eager
for your business, you get approved for higher limits and
you can easily get the funds you need to face any crisis or
opportunity that comes your way.
At this stage in life, you need to safeguard the credit
history you've so carefully built.
• Check your credit report annually and challenge any
discrepancies you find.
• Watch for signs of identity theft. Be prepared to put a
credit alert on your account if you see suspicious activity
on your credit report.
• If you've co-signed a loan for anyone, keep those lines
of communication open and be prepared to step in if
they start to miss payments.
• Be alert for fraudsters who prey on senior citizens,
especially online.
• Keep your credit card active. Use it to make purchases
you can easily pay off every month.
• Continue to pay your bills on time.
