Credit Confusion: TransUnion® Survey Reveals Baby Boomers Undervalue Credit in Retirement
Nearly half of the nation’s baby boomers (consumers ages 51 to 70) say they believe their credit score matters less after age 70, according to a new TransUnion (NYSE: TRU) survey released today. The survey asked 1,037 non-retired baby boomers how important they believe their credit is at various life stages.
“Despite the misperception that credit loses importance later in life, the fact remains that your credit score is a vital financial tool at every age."
The survey also indicated that baby boomers have a mixed understanding of the importance of a credit score for financial obligations. For example, while 70 percent of baby boomers agree that a healthy credit score is required for refinancing a mortgage, only 61 percent recognized the importance of a healthy credit score when co-signing on loans (for a child or grandchild), and only 32 percent said they believed a strong credit score may be necessary to enter a nursing home or long-term care facility.
“Baby boomers need to prepare their credit score for retirement so they have the tools to fund financial obligations later in life,” said Chaplin. “As Americans age, good credit can not only help them finance medical expenses and long-term care, but also help them support children, grandchildren and other family members as they take on middle-life expenses, like buying a house or paying for school.”
Chaplin says there are several actions pre-retirees can take to establish and maintain good credit in retirement. One of the most important is to stay credit-active by using credit cards regularly and paying them off in full each month.
“Most retirees are past the point of making major purchases such as a new house or car,” said Chaplin. “But that doesn’t mean you should stop using your credit cards.”
Chaplin said consumers should use their credit cards for small purchases, such as groceries, and pay off the balance in full each month. This will keep your credit active and help maintain your score. Unused cards may be closed due to inactivity. A credit card closure will impact your available credit ratio and have a negative impact on your score.
Consumers can also prevent credit fraud and identity theft by locking their credit when they aren’t using it. Products like TransUnion’s Credit Lock allow users to lock their TransUnion credit with a simple swipe or click from their phone. Credit Lock is available via TransUnion’s mobile app and website, and protects your credit from unauthorized pulls.
For more information, visit TransUnion’s website.
For more information about TransUnion’s Credit Monitoring, please visit: http://www.transunion.com/personal-credit/credit-management/credit-monitoring.page.
About the Survey
The online survey includes responses from 1,037 employed U.S. consumers between the ages of 51 and 70. The survey was conducted between January 9, 2016 and February 2, 2016.
About TransUnion (NYSE:TRU)
Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.
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