We’ve all seen the commercials for checking your credit score, and some even talk about ways to boost it, but if you’re over 50 and well established, does the number really matter that much?
According to the FICO® Score model, the average credit score in America is 714. And with the length of your credit history accounting for a significant portion of your score, it makes sense that those older than age 56 have the highest scores.1
Your credit score determines if you’re able to obtain a mortgage and the corresponding interest rate on the loan. The better the number, the better your rate, which could save you a pretty penny over the length of the loan. The same applies to other large purchases such as cars and boats.
According to an AARP article, most financial pros say good credit matters at any age. The reasoning is that while you may not be in the market for a home or a boat, unexpected things happen at any age, and having the wherewithal to borrow money when you need it can make a big difference.
So, if you’re someone with stellar credit and few to no missed payments, you may feel it’s crucial to keep a high credit score. But what about when the unexpected turns your clean slate a little muddy? According to industry experts, medical bills aren’t reported, so they won’t necessarily drop your score down. Defaults can be damaging, but how badly will depend on where your score lies and how you’re handling other payments.
Suggestions for keeping up a good credit score:
- Get credit as early as possible: The age of your oldest line of credit impacts your score
- Monitor your credit score: Understanding your credit usage can help you pay the right debts first
- Create and stick to a budget: A line of credit is only good for your score if you can pay it off rather than end up with a string of debt
- Make payments on time: Payment history makes up 35% of your score3, so pay at least the minimum
While we may not be able to change your credit score, having a financial strategy in place may be able to help you focus on saving and spending. Contact our office today at (540) 720-5656 and let’s talk.
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.