FICO/credit scores after retirement?

[Rudynate]

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?

 

 

Yes, not owing any money at all can have an adverse effect on your FICO score. But with a near perfect score, why are you worried? Someone with a score of 800+ need not worry anout borrowing all the money he should ever need. Maybe you just wanted brag about your high score.

[+ GregM]

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??

 

We closed on our condo in Nov and we just refi the other day. We went from 3.50ish% down to just over 2%.

 

Hugs,

Greg

[+ GregM]

Yes, not owing any money at all can have an adverse effect on your FICO score. But with a near perfect score, why are you worried? Someone with a score of 800+ need not worry anout borrowing all the money he should ever need. Maybe you just wanted brag about your high score.

 

I never figured the op to be a bragger. I think his concern is valid.

 

Hugs,

Greg

[marylander1940]

Yes, not owing any money at all can have an adverse effect on your FICO score. But with a near perfect score, why are you worried? Someone with a score of 800+ need not worry anout borrowing all the money he should ever need. Maybe you just wanted brag about your high score.

 

 

@Unicorn is an honest poster who has shared with us good and bad experiences about his personal life. He's also a hopeless romantic and I look forward to finding out more about his next lover after his Paraguayan adventure went wrong. We don't always agree and we usually have different points of view but he means what he says.

[Rudynate]

I never figured the op to be a bragger. I think his concern is valid.

 

Hugs,

Greg

 

It's a non-concern concern. Fair Isaac's algorithm rewards the use of credit, so if you have a substantial amount of available credit and aren't using any of it, the algorithm dings you. But who cares when you have an 800+ FICO score? Trust me, any lender will be happy to give him as much as his heart desires. It's a worry for people who need more important things to worry about

[RadioRob]

A couple of notes as this is a hobby topic of mine:

 

• Even if you were to close every credit account you have, it would continue to report on your credit report for up to another 10 years. (Bad info such as late payments have to be removed after 7.5 years.)
  
• You can view your credit report for FREE and without any impact to your score by visiting www.annualcreditreport.com and requesting a report from each of the big 3 bureaus.
  
• In terms of scoring, various behaviors represent how many points you have (or not awarded). Details can be found at: https://www.myfico.com/credit-education/whats-in-your-credit-score
  
• For MAXIMUM scoring in the "Amounts Owed", you would want to have each revolving trade line (such as a credit card) report a $0 balance except for ONE which would report less than 10%. (The statement should be generated at $0. For the statement generating with less than 10%, you can immediately pay it off after it reports and not incur interest). This technique is referred to as "All Zero Except One".
  
• If you're trying to maximize your score, you should have at least 3 revolving accounts reporting. (Having at least three accounts gains a few extra points which tend to be more than penalties associated with lowering the Average Age of Accounts and the inquiry ding).
  

[+ WilliamM]

It's a non-concern concern. Fair Isaac's algorithm rewards the use of credit, so if you have a substantial amount of available credit and aren't using any of it, the algorithm dings you. But who cares when you have an 800+ FICO score? Trust me, any lender will be happy to give him as much as his heart desires. It's a worry for people who need more important things to worry about

 

Most truly wealthy people don't discuss it in public. Especially time and time again in an escort forum. Yikes.

[Rudynate]

Most truly wealthy people don't discuss it in public. Especially time and time again in an escort forum. Yikes.

 

Right. Why didn't he just text his financial advisor?

[+ Charlie]

I have been retired for 18 years, my spouse for 23 years. We have a small mortgage and a car lease (which is treated like a loan), which are in both names. All utility bills are in my name. I have several credit cards, which I use regularly, and pay off completely every month (and always have: I have never had an unpaid balance on a credit card); he has a few cards, but hardly ever uses them for anything. Despite the difference in the way each of us uses credit, our FICO scores are almost identical, never differing by more than a few points. I have no memory of what our scores were before we retired (did they have FICO scores then?), but they are always well above 800.

 

Perhaps Unicorn trusts the members here to give him a broader perspective than he would get from his financial advisor. I get most of the useful practical advice I need from posters here.

[+ azdr0710]

I get most of the useful practical advice I need from posters here.

 

amen!......a busy forum with a wide variety of helpful and savvy posters.......(except for that one grump! )

[marylander1940]

Right. Why didn't he just text his financial advisor?

 

Do you think @Unicorn is also impersonating a Doctor?

 

[Rudynate]

Maybe h

I have been retired for 18 years, my spouse for 23 years. We have a small mortgage and a car lease (which is treated like a loan), which are in both names. All utility bills are in my name. I have several credit cards, which I use regularly, and pay off completely every month (and always have: I have never had an unpaid balance on a credit card); he has a few cards, but hardly ever uses them for anything. Despite the difference in the way each of us uses credit, our FICO scores are almost identical, never differing by more than a few points. I have no memory of what our scores were before we retired (did they have FICO scores then?), but they are always well above 800.

 

Perhaps Unicorn trusts the members here to give him a broader perspective than he would get from his financial advisor. I get most of the useful practical advice I need from posters here.

 

 

Maybe he deserves the benefit of the doubt. But I'm remembering a post of his from a few weeks ago when he posted a photograph of a model who closely resembled his ex, saying that he looked almost exactly like his ex just in case anyone was wondering what his ex looked like. One doesn't expect a man of his age and station to be that needy.

[Rudynate]

amen!......a busy forum with a wide variety of helpful and savvy posters.......(except for that one grump! )

 

 

Im also a helpful and savvy poster - usually.

[+ WilliamM]

Maybe h

 

 

 

Maybe he deserves the benefit of the doubt. But I'm remembering a post of his from a few weeks ago when he posted a photograph of a model who closely resembled his ex, saying that he looked almost exactly like his ex just in case anyone was wondering what his ex looked like. One doesn't expect a man of his age and station to be that needy.

 

Yes. And he is apparently so wealthy he can afford several personal financial advisors concerning FICO scores.

[+ WilliamM]

Do you think @Unicorn is also impersonating a Doctor?

 

 

Or a real estate tycoon specializing in Beverly Hills, above Sunset.

[Rudynate]

Yes. And he is apparently so wealthy he can afford several personal financial advisors concerning FICO scores.

 

 

I'm nowhere close to wealthy. But if I texted a quick question about my FICO score to my financial adviser, he would answer quickly, providing more information than I ever needed or wanted.

[Guest]

Yes, not owing any money at all can have an adverse effect on your FICO score. But with a near perfect score, why are you worried? Someone with a score of 800+ need not worry anout borrowing all the money he should ever need. Maybe you just wanted brag about your high score.

As I intimated in the title of this string, and elaborated on in my original post, my concern is not about my current score, but what's going to happen to it after I retire. There are a number of regular posters on this forum who are retired, and was hoping to hear from them as to what happens when one retires. Bad credit scores can affect rates of more than just loans. I appreciate the response from Charlie and others who were able to discuss what actually happens in retirement.

[RadioRob]

Also... just for a bit of perspective. While I'm not retired (and won't be for awhile longer), there is not anything to really worry about. Even if you don't have any active debt. Having a credit card and just letting some automatic charges such as Netflix hit it and auto-pay from your checking is all you need to keep a revolving trade line open.

 

You don't need to take on new debt to have a good credit score. Just use the credit wisely and pay on time. All the same rules that apply pre-retirement would continue to apply afterwards. Good luck!

[+ WilliamM]

As I intimated in the title of this string, and elaborated on in my original post, my concern is not about my current score, but what's going to happen to it after I retire. There are a number of regular posters on this forum who are retired, and was hoping to hear from them as to what happens when one retires. Bad credit scores can affect rates of more than just loans. I appreciate the response from Charlie and others who were able to discuss what actually happens in retirement.

 

Perhaps some members, like @latbear4blk are much more concerned about BLM and possible police over reaction than a question about FICO sometime in the future.

 

 

Couldn't this question have waited?

[MrMattBig]

On an admittedly somewhat limited view and knowledge on credit...credit is soooo annoying.

How is it that in California I had to pay an apartment deposit of 1.5 times the rent, but in Vegas I just qualified to pay half the listed deposit amount...all on similar credit scores??

Edited June 11, 2020 by MrMattBig

[mike carey]

Couldn't this question have waited?

Most people are capable of considering two unrelated issues at the same time.

[thickornotatall]

Having no or little debt will let you sleep at night...Read The Millionaire Next Door...

[BabyBoomer]

Perhaps some members, like @latbear4blk are much more concerned about BLM and possible police over reaction than a question about FICO sometime in the future.

 

 

Couldn't this question have waited?

 

Moot point. @latbear4blk is currently on hiatus.

 

~Boomer~

[+ WilliamM]

Moot point. @latbear4blk is currently on hiatus.

 

~Boomer~

Not for long. That is why I included his name.

 

He will be back quite soon.

[marylander1940]

Im also a helpful and savvy poster - usually.

 

but somehow in this thread you put the OP @Unicorn on trial instead of answering his question or simply not posting.