You might think your credit worries will vanish once you retire. But that is far from true. To truly enjoy a retirement free of credit stressors, you must monitor your credit spending closely.

Looking for tips to monitor and maintain a healthycredit score after retirement? Here are the top five from our vault.

1. Check your credit report regularly

Did you know credit reports sometimes contain errors like extra charges, missing information, etc.? What’s more, if left unchecked, these errors could have a long-term negative impact on your credit score. So, make it a point to check your credit reports regularly post-retirement. Additionally, keep a tab on your CIBIL score too.

These days, many online websites allow you to check your score for free, and some even allow you to download a free report.

Additional Read: 5 Cool Habits for Gaining a Good Credit Score

2. Check your credit utilisation ratio

Having a favourable credit utilisation rate can do wonders for improving your CIBIL score. In fact, most experts suggest a CUR of under 30% is ideal, even post-retirement. So, the question is- your CUR under the suggested limit? Check the CUR for each of your credit lines and the overall CUR to find out.

To calculate your CUR for a single credit line, divide your balance with your credit limit and multiply the number by 100. Doing this gives you a CUR percentage. For the overall CUR, add the balance from all your credit lines and divide the total with the sum of all your credit limits.

3. Keep your accounts with a long credit history open

Thinking of closing an account after clearing your debts? Well, don’t. Instead, pay off your debts and leave your credit lines open, especially if they have a long credit history. This helps you maintain a low CUR and improve your CIBIL score, and provides a source of backup funds if you ever need them during an emergency.

3. Set up the auto-debit feature to pay off debt

Paying your dues on time can help you maintain a good credit score. And one way to never miss a payment again is to set auto-debit for your debt repayments. Another advantage? You never have to worry about penalties on your debt repayments if you repay your dues on time.

4. Keep your credit cards active

Similar to your credit accounts, keep your credit cards open after you pay off all your dues. Again, this helps you increase your CUR and bump up your CIBIL score.

Remember, banks tend to close inactive credit cards, so you might have to put in some additional effort to keep them active. One easy way to do this is to charge a small recurring account every month to your card and use it to make bill payments.

Additional Read: Do’s and Don’ts to Improve Your Credit Score

Conclusion

Retirement may pose a few challenges to maintaining a healthy CIBIL score. However, implementing the above tips can help you a great deal. Get started; click here to use Tata Capital’s free credit rating calculator to perform a credit score check today!

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