Page 2 - Van Wig & Associates Newsletter, Lakewood Village ~ October 2019 Issue

senior finances
YOUR MONEY

THE JOURNEY:

5 THINGS RETIREES SHOULD

DO WITH THEIR CREDIT

by Janet Kidd Stewart never to close credit accounts because
it can hurt scores, but Griffin says any
W one of the 147 million “A later-life move, dip is typically short-lived. “If you
hether or not you’re
close an account your scores will dip,
consumers affected by
but they usually recover within two
LAKEWOOD the 2017 Equifax data breach— purchases of items like or three months,” he said. If you’re
which resulted in a Federal Trade
not planning to buy a house or a car
VILLAGE Commission settlement of up to cars, cell phones or in the next six months, cleaning up
REAL ESTATE EDGE $700 million last week—retirees need orphan accounts may be a good idea
to stay vigilant about their credit
now, he said.
Publisher profiles, experts say. insurance, even an
Allison Van Wig That may seem counterintuitive, BE READY
CA DRE #00985700 particularly to those who pay off their If you’re thinking about a reverse
homes, cars and other debt by the application for a reverse mortgage, where a lender provides
time retirement is on the horizon. funds to homeowners 62 and older
Retirement itself, in fact, doesn’t hurt mortgage may require that are tied to home equity, be aware
a credit score directly. that your credit history is now part of
But the absence of credit can, the equation. Since 2015, these lenders
indeed, torpedo a pristine credit score a strong credit score.” have been required to assess whether a
4435 E Village Rd because payment history over the past borrower has the ability to continue
Long Beach, CA 90808 two years—or the lack thereof—is the making home improvements and tax
biggest determinant of a credit score. payments on the property, and credit
562-882-1581 The length of credit history, where dip in their credit scores could be who started with scores below 680. reports are a key part of the equation.
Allison@superbroker.com most retirees can really shine, carries ideal candidates for Experian Boost, (Scores range from 300 to 850).
www.SuperBroker.com less than half the weight of the overall a program that lets consumers give CHECK FOR A WINDFALL
payment record. the agency a look into their checking EMBRACE THE FREEZE If you want to check your potential
And a credit-score dive can be accounts to verify positive track If you’re retired and don’t plan to eligibility to claim part of the Equifax
trouble, even for retirees. records on paying utility and cell move or buy a car in the near term, settlement, go here: https://eligibility.
“It’s an important tool to have phone bills. this may be a good time to put a equifaxbreachsettlement.com/en/
available and to protect,” said Rod Two-thirds of the customers who freeze on your credit with the three eligibility. To file a claim, go here: /
Griffin, director of public education try the Boost program see a rise in their main bureaus, Equifax, TransUnion www.equifaxbreachsettlement.com/
for Experian, one of the three major scores, Griffin said, with an average and Experian. If you do this, creditors file-a-claim .
6425 Busch Blvd., credit-reporting agencies. increase of 12 points. Note that it can’t access your information until “You should always be diligent
Columbus, OH 43229 A later-life move, purchases can’t negate bad credit behavior, it you remove the freeze with a PIN about managing your credit history,”
877.872.3080 of items like cars, cell phones or simply can help consumers with thin number. So, keep that number in a Griffin said. “It can affect a wide
www.DiscoverPubs.com
insurance, even an application for a credit records beef up their profiles. safe place. For a fee, the bureaus offer range of financial transactions and
Sudoku, Scrabble, Crossword reverse mortgage may require a strong “When you think about people a credit lock, which can be removed you want it to be there to work for
and articles distributed by credit score. What to do? Consider heading into retirement, if they are without a PIN, but may not carry all you when it is needed.” n
Tribune News Services and
Brandpoint where noted. these 5 moves: adding recurring on-time utility the protections of a true freeze.
© Copyright 2019 by payments, that could help maintain ©2019 Tribune Content Agency
Discover Publications, Inc. LEVERAGE THE POSITIVE activity” on their reports, he said. The CLEAN UP Distributed by Tribune
All rights reserved.
Retirees who’ve experienced a program is most helpful for people A lot of credit experts tell consumers Content Agency, LLC.
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