Money Talks News - As we age, we work hard to pay off our homes, cars and other loans. However, credit is still important in our golden years.
"They forget because they don't that think they need it," credit counselor April Lewis-Parks said. "But when they do, you know, it's important that they have it still established."
Lewis-Parks is talking about credit. It's important, no matter your age. However, she says it is something a lot of older people may forget about.
"But then when something comes up and you want to get a new car or you want to get something else, it's important to have a good credit score so you get the best interest rate and the best loans available," Lewis-Parks explained.
As people age, financial needs change, and building credit may not be a high priority. However, there are some golden rules of credit people should follow in their golden years.
The first golden rule of credit is to avoid carrying a balance. While this is obviously important for all of us, it is especially important for those of us on a fixed income.
The next golden rule is avoid cosigning. Do not cosign loans and do not cosign credit cards.
"If the other party, something happens to them financially or they're just not able to pay back the money, then you're on the hook," Lewis-Parks explained.
Another golden rule: Use your cards every once in awhile to show activity on your accounts, but make sure you pay them in full every month, too.
The final golden rule is to check your credit reports for accuracy. You can get a free look at your history from each of the big three agencies annually.
As we get older, we obviously want to stay in great shape, both mentally and physically. We also want to keep our credit in good shape.
For more tips and information, go to the Money Talks News website and search for "Credit."