Do credit scores matter after retirement? I guess that depends on whether you need to borrow money or not. I’m not planning to borrow any money for a while so for the short term we don’t have to worry about credit scores much. We have a recent model car that is paid for. We are not planning to move anytime soon and we are set with our mortgages. We also have over $50,000 in our emergency fund in case we run into any financial trouble over the next few years.
Good credit scores are essential for the long term
For the long term, we still need to maintain our good credit scores. If we relocate in the future, we’ll need a good credit rating to we get a good rate on the mortgage. Also, if the interest rate falls any more, we might have to think about refinancing again. Mortgages are a bit more difficult though because we need both good credit rating and good income. Our income fell quite a bit when I left my job so it might be harder to get a mortgage now.
Also, I plan to never work for another corporation again. Once baby RB40 goes off to school, then I’ll have more time to work on other self employment options. If I decide to invest in a restaurant or some other business, I might need a small business loan from a bank to get started. A good credit score would be very helpful then. Another alternative is peer to peer lending. Prosper will give you a better rate if your credit scores are good.
Monitor your credit scores
All in all, it’s a good idea to have good credit scores even when you don’t really need them. We also need to monitor our credit scores regularly to make sure there aren’t any problems. By checking the credit scores once or twice a year, I can make sure nobody opens a credit card in my name. It is also good to go over the credit report in detail and make sure there are no mistakes. One late utility payment can screw up your credit score. By paying attention to my credit scores, I will have more options in the future.
It’s been a while since I checked my credit so I signed up with GoFreeCredit to see how I’m doing. I’m also curious if quitting my full time job will change my credit scores. At this point, it looks like my credit scores weren’t affected by my transition to being a stay at home dad.
Here are my scores
You have never been late with your payments, and no collection accounts or negative public records are listed in your credit report.
You opened 5 account(s) in the past 24 months.
- refinance primary residence to lower rate
- refinance rental home to lower rate
- take out mortgage for the 4 plex
- American Express – I got this so I can use a credit card at Costco
- Chase Southwest card – I opened a new account to get airline miles…
Overall, things are looking pretty well. I’ll avoid opening any more credit accounts for 12 months or so. This will let some of these prior accounts roll off the 24 months record.
GoFreeCredit will show you all 3 credit reports from Equifax, Experian, and TransUnion as soon as you sign up. They will also monitor your credit and alert you if there are any problems. You can try this service for 30 days at no charge. It will cost 16.95/month after that. If you just want to check your current standing, then you can call and cancel in a few days.
*Update* I called and was able to cancel the service in less than 5 minutes with no hassle. The rep asked if I’d like to switch to a lower price plan at $11.95, but I said no thanks and he canceled my account.
Have you checked your credit scores lately? How do they compare to my scores?
Disclosure: I do get a referral fee if you sign up to check your credit through the link on this page.
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.