Promotes Importance of Credit for Seniors

Share Article finance and economic magazine for seniors comments on the challenges that seniors can face maintaining a good credit score in their retirement, and offers suggestions and advice on how to manage credit accounts and select which accounts to hold on to.

The catch 22 about credit is that you need to borrow money to earn a credit score. finance and economic magazine for seniors today released their observations regarding senior credit activity, and proposed ideas and information to their retired readers for how to maintain a good credit score and not over or under use their credit accounts. discussed what they referred to as “the perfect balance,” and encouraged its readers to further educate themselves if necessary to make wise financial choices in their retirement. was prompted to address this issue by a recent inquiry from a reader to Fox Business, published May 31st 2013, asking what number of credit cards she should keep open now that she is retired, and how closing some of them would affect her credit score. Fox columnist Jane McNamara reported that retirees should neither need nor want access to more than $100,000 in available credit, as the reader reported she possessed. McNamara recommends keeping two or three cards open and keeping them all at a zero balance—in other words, charging only what can be paid off each month to them. pitched in with recommendations for their senior and retired readers as well, cautioning them that using too little credit can be also dangerous. is quoted as saying, “The catch 22 about credit is that you need to borrow money to earn a credit score. It sounds backwards, since not borrowing money should show that you are self-sufficient and clearly financially responsible. But what can happen during retirement is people cancel their credit cards and pay with mostly debit or cash. This can actually hurt your credit score because the credit bureaus have no way to see that you are reliable at paying money back, if you are no longer borrowing money—that is to say, using credit. It is possible to set up credit card charges for things that are a set amount each month like the monthly payment for your car insurance policy, your senior life insurance policy, or your car payment if you have any of these. This way you are building credit while still being very cautious of the amounts getting charged to the credit card each month. It may help with budgeting.”

In the above-mentioned Fox article, McNamara advised that when considering which credit accounts to close, it’s wise to keep the oldest accounts active and open since the length of credit history is factored in when determining credit scores. She also recommended that seniors take into account their credit utilization ratio when closing accounts, since getting rid of available credit can negatively impact credit scores. is not as concerned about credit utilization, as long as card holders are keeping their balances low. advocated paying off credit balances each and every month, but at the very least keeping charges to less than 10% of the available credit limit.

About is an economic and financial online magazine geared towards helping senior citizens and retirees with financial and lifestyle decisions. offers advice and knowledge on everything from planning and saving for retirement, to maintaining good health in one’s golden years, to current economic news relevant to this demographic. hopes to empower and educate its readers towards creating a peaceful, enjoyable and financially secure retirement.

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Grey Wing Financial
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