This guest blog post is contributed by Boomerater, a free online resource for Baby Boomers helping you find everything from advice on retirement planning to family vacations. Seniors for Living contributes its properties to Boomerater’s Retirement Communities directory.

A new Q&A discussion from Boomerater’s forums appears here each Friday. In this week’s post, members tell us about knowing and safeguarding your credit rating.

Question: “Are there websites that offer free and reliable credit reports? My bank informed me it is possible my security may have been breached. I am keeping a close look at all of my accounts, but am concerned because I am retired and live on a fixed income. Also I hope to sell my house and move to a retirement community. I don’t want a bad credit report to keep me from being able to buy a condo. Would like to know any suggestions about securing my credit standing.”

Reply #1

It is smart to scrutinize all your accounts; everyone should review their credit reports annually. Each year you can receive a free copy of your credit report from www.annualcreditreport.com. The highest credit score is 850, but most people’s scores are not that high. Each lender has its own way of interpreting the score. Most lenders agree that any score above 750 is considered excellent, scores around 650 are fair and scores under 600 are considered poor. The closer you are to a 750 score, or above, the more likely you will be approved to buy your condo and pay lower interest rates. While there are a number of other websites that say you will receive a free credit report, be aware that if you have to provide a credit card to get a free report then it is not really free. Check out www.annualcreditreport.com – it provides ‘free and no strings attached’ reports. Reports are provided from the three major credit reporting agencies (Equifax, Experian and TransUnion). Once you have your reports in hand, verify the reports and look for inaccuracies. If you see any inaccuracies, contact the credit reporting agencies to give them the correct information. Inaccurate information can cause you to be denied credit or pay a higher interest rate.

Reply #2

Be very careful about being sucked into credit card promotions.  When you take out a credit card or cancel one it can have a major affect on your credit rating.  Most people don’t realize this – I didn’t.  I signed up for 3 different credit cards because they were offering free airline miles, basically a free ticket for keeping each of the cards for a year.  I never even used the cards after the first initial purchase to activate the cards, and I paid the bill immediately.  Little did I know that just signing up and canceling these cards would so negatively impacted my rating.

Reply #3

I understand your situation.  My husband handled all of our finances.  When he died I learned he had not been keeping our credit cards paid off.  Because I was delinquent in paying my bills, my credit rating was lowered, which resulted in being turned down for a home improvement loan. My advice is to understand your accounts, don’t let your spouse take control of all the banking, and have at least one credit card in your name, separate from your spouse’s.  Also, open all bills immediately and pay them, or if necessary dispute them, so you don’t get a black mark on your credit rating.

Add your own comments or read other tips about knowing and protecting your credit score at Boomerater.