As a retired guy, should I feed my credit rating?
I’m 72 and not quite retired. My credit cards are dwindling as the companies die (like Sears and Carson Pirie Scott). I have a small student loan that I am in a position to pay off should I choose to. That leaves me with two cards active and a mortgage. My payment record is quite good., but with that little credit activity my credit rating seems to have dropped substantially. Do I care? Should I keep the student loan on a normal payment schedule (a couple years at most)? Should I open another credit card (my oldest card goes back quite far but produces no cash rewards)? We might want to sell our house and buy a smaller one.
Terry Says
Please, please pay off that student loan.
Stretching it out this far has cost you an enormous amount of interest!
As long as your credit score is above 750 (check it for free at CreditKarma.com) you have no worries. You’re likely not buying life insurance or applying for a job, or buying a car with financing which is where most credit checks come. Freeze your credit at all three bureaus. Keep working as long as you can and building your savings. And enjoy life with little debt. It would be a good idea before you retire (like NOW) to refi your house down to a 5 year loan at today’s low rates. Then you could work just enough to earn the mortgage payment. That’s a REAL goal!
