There are many myths out there about retirement. One is that once a person is in retirement and in his or her later years, his or her credit score stops being impactful.
On the contrary, the reality is that there is no age at which credit score suddenly becomes completely unimportant. There are many ways that this score can have major impacts on the lives of retirees.
For one, it can matter quite a bit if retirees suddenly find themselves in need of funds. When a person enters retirement, he or she may have a plan for how to take care of costs and think that his or her borrowing days are done. However, things don’t always go to plan during retirement. Unexpected costs, such as unanticipated medical costs, can come up. This can leave a retiree needing a new source of funds. When this need arises, credit score can have major implications on what options would be available to a retiree and how much these options would cost.
Another reason credit score matters for retirees is that this score is looked at for many things beyond just loans. Among the things credit score could impact for retirees are:
- Housing options: Landlords often look at credit scores when considering applications for prospective tenants. So too do senior living and elder care facilities.
- Cellphone costs: How good of a credit score a person has can impact how good of deals cellphone providers are willing to offer.
- Insurance costs: Credit scores are among the things insurers may look at when determining rates. So, a lower score could mean higher premiums.
- Employment options: Sometimes, a retiree will decide to reenter the workforce. Employers often look at credit scores as part of the hiring process.
The ability for credit score to have impacts long into retirement is among the reasons why how retirees respond to debt problems matters a great deal. There are a range of debt problems seniors can face, such as issues paying back medical bills. When facing such problems, it can be important for retirees to understand what impacts the different options available for addressing this debt would have on credit score (in the short-term and long-term) and other things that could have implications for their life and finances. Skilled bankruptcy attorneys can help retirees who are struggling with debt with finding debt relief solutions that keep their key interests protected.