FICO/credit scores after retirement?

[Guest]

As I approach my retirement, I wonder what's going to happen to my FICO/credit score. At this point, I don't owe anyone anything (no loans), and I pay off all of my credit cards in full each month. My score of 857 is good, but apparently the fact that I'm quite solvent might actually be used against me. These comments care with my FICO score: FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person’s credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans. And also: FICO® Scores consider the total number of accounts a consumer holds with balances, including credit card balance amounts that appear from the most recent account statements—even if that balance was paid off. Your score was impacted by having too many accounts with balances.

I wonder if things are going to get even worse when I'll be living off my pension and my savings. Even if I'm completely solvent, will I have lousy scores? What's happened to those of you who've retired?

[Guest]

As I approach my retirement, I wonder what's going to happen to my FICO/credit score. At this point, I don't owe anyone anything (no loans), and I pay off all of my credit cards in full each month. My score of 857 is good, but apparently the fact that I'm quite solvent might actually be used against me. These comments care with my FICO score: FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person’s credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans. And also: FICO® Scores consider the total number of accounts a consumer holds with balances, including credit card balance amounts that appear from the most recent account statements—even if that balance was paid off. Your score was impacted by having too many accounts with balances.

I wonder if things are going to get even worse when I'll be living off my pension and my savings. Even if I'm completely solvent, will I have lousy scores? What's happened to those of you who've retired?

[+ azdr0710]

do you really even need to worry about your credit score?.....

 

eliminate excess credit cards, pay cash for everything (or continue paying off cc bills each month).....

 

honestly, Unicorn, millions wish they had your "problems"......

[+ azdr0710]

do you really even need to worry about your credit score?.....

 

eliminate excess credit cards, pay cash for everything (or continue paying off cc bills each month).....

 

honestly, Unicorn, millions wish they had your "problems"......

[+ GregM]

I've always been told that although paying off your credit cards is the responsibil thing to do it does hurt ones score a little bit. I've been rebuilding mine the last few years and trying to make sense of the scores is maddening. Im at a point I'm going to pay off my cards and pay mortgage monthly and not worry about the numbers. Besides the occasional piece of equipment for my business I dont have plans to make a big purchase for a while.

 

Hugs,

Greg

[+ GregM]

I've always been told that although paying off your credit cards is the responsibil thing to do it does hurt ones score a little bit. I've been rebuilding mine the last few years and trying to make sense of the scores is maddening. Im at a point I'm going to pay off my cards and pay mortgage monthly and not worry about the numbers. Besides the occasional piece of equipment for my business I dont have plans to make a big purchase for a while.

 

Hugs,

Greg

[+ Pensant]

As long as you’re over 800, you’re considered a prime consumer.

[+ Pensant]

As long as you’re over 800, you’re considered a prime consumer.

[+ E.T.Bass]

My understanding is canceling a credit card might hurt your score but carrying zero balance helps your score. I carry no balance and my score is fine.

 

How many consumer transactions during retirement hinge on your score?

[+ BenjaminNicholas]

Retirement means not needing to worry so much about FICO.

 

Especially, as the FICO scoring model you see on most consumer websites is only one of 50.

 

Yes... 50. Insane.

 

As @Pensant said, over 800 and you're getting prime rates anyway. Don't worry about the numbers.

[Quincy_7]

I've always been told that although paying off your credit cards is the responsibil thing to do it does hurt ones score a little bit.

 

Whoever told you that has no idea what they are talking about and you should do the opposite of whatever they tell you to do.

[+ GregM]

Whoever told you that has no idea what they are talking about and you should do the opposite of whatever they tell you to do.

 

I prefer to pay my cards off at the end of the month. I really don't like the idea of carrying a balance into the next billing cycle.

 

Hugs,

Greg

[RealAvalon]

As I approach my retirement, I wonder what's going to happen to my FICO/credit score. At this point, I don't owe anyone anything (no loans), and I pay off all of my credit cards in full each month. My score of 857 is good, but apparently the fact that I'm quite solvent might actually be used against me. These comments care with my FICO score: FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person’s credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans. And also: FICO® Scores consider the total number of accounts a consumer holds with balances, including credit card balance amounts that appear from the most recent account statements—even if that balance was paid off. Your score was impacted by having too many accounts with balances.

I wonder if things are going to get even worse when I'll be living off my pension and my savings. Even if I'm completely solvent, will I have lousy scores? What's happened to those of you who've retired?

Credit cards, hydro, gas and phone/internet - all those bills will keep your credit history active.

[instudiocity]

If you have no debt for several months, your score will go to ZERO. Why do you care? You obviously have the means to accomplish all your goals out of pocket.

[njr47]

Retirement is great, but.......Mortgage rates are so low that I'm considering re-financing my current 30 year mortgage , which has 14 years remaining. Turbotax just told me my credit score is 791. Several mortgage brokers are trying to get me to re-finance. Will my current retirement status (with a decent IRA, social security, and a few investments) be a problem??

[RealAvalon]

Retirement is great, but.......Mortgage rates are so low that I'm considering re-financing my current 30 year mortgage , which has 14 years remaining. Turbotax just told me my credit score is 791. Several mortgage brokers are trying to get me to re-finance. Will my current retirement status (with a decent IRA, social security, and a few investments) be a problem??

If you have significant equity in your home, probably not.

[instudiocity]

Retirement is great, but.......Mortgage rates are so low that I'm considering re-financing my current 30 year mortgage , which has 14 years remaining. Turbotax just told me my credit score is 791. Several mortgage brokers are trying to get me to re-finance. Will my current retirement status (with a decent IRA, social security, and a few investments) be a problem??

No. Go for it!

 

FYI, I’m planning to be mortgage & debt free in retirement. I’ll have more discretionary money for my indiscretions!?

[wklukas]

My score of 857

 

 

you have my sympathies....858 here.

[cany10011]

I thought a perfect credit score was 850? Does it go higher?

[jawjateck]

My score has gradually declined over the past few years, and there are several reasons for that (no debt, no auto loans particularly, fewer credit lines, etc). I don't care. I'm not a borrower, nor run credit card balances, nor do I intend to borrow in the future. One impact, I do not receive the additional discount on my home/auto insurance premiums because of the lower credit score. So, it's a few extra bucks annually out of my pocket. Debt is a cruel taskmaster, and I hope to live the rest of my life free from its ruthless grip.

[+ Topseed]

jawjateck: Congrats. I agree. No debt for decades.

 

I tell people that living a debt-free life (when at all possible, and I understand that) increases one's "Fuck You!" potential.

[+ DERRIK]

73 year old credit scores at 800

 

I use SPARK BUSINESS for most everything to earn 2% SAM's Club Card for 5% gas. Have Delta card for travel.

 

Pay balance two or three times a month

 

Still employed - so even though I am required to take distributions from 401K's - I still can make contributions to SEP IRA

 

Delayed social security as long as possible - GOVCO forces you to take when 70. SS payment increases 5% when you delay

 

Just leased a new car (unfortunately one month before all Hell broke loose). Replaced a 2010 car - wanted something with cameras, sonar, collision avoidance - ECT

 

I am fortunate What I do for work does not require heavy lifting - must clients find me on google - I have little competition - I charge a lot.

Edited June 11, 2020 by DERRIK

[Nvr2thick4me]

I thought a perfect credit score was 850? Does it go higher?

Latest FICO scoring goes up to 900. FICO uses different methodologies for determining scores used for mortgages, car and credit cards.

[wklukas]

I thought a perfect credit score was 850? Does it go higher?

 

the standard FICO models all use a range from 300 - 850....

a couple outlier scoring models ( Citi for one) use 250 - 900.

[cany10011]

the standard FICO models all use a range from 300 - 850....

a couple outlier scoring models ( Citi for one) use 250 - 900.

Thanks I’ll have to check mine on the Citi model.