Don’t forget the unexpected.
You might not plan to take out a loan during retirement, but if an urgent home repair or other crisis occurs, you could require extra funds and your credit score’s impact on retirement matters.
Should a sudden need for a loan arise, having a better credit rating opens the door to getting it at an excellent rate. New opportunities to help family members might arise too. Relatives could ask you to co-sign a loan if you have a stable credit score.
For example, a grandchild taking out a student loan might ask you to co-sign. Just remember that co-signing brings specific risks. If the borrower defaults on the loan, you’ll have to send in payments.
Another way your credit score’s impact on retirement is important is if you need to borrow money for medical bills.
It sure doesn’t sound like fun, but a 65-year-old couple who retired recently can expect to pay up to $295,000 for healthcare costs before they pass away. And that figure doesn’t even include long-term care expenses.
