Does retirement affect credit scoring?

Dear James,

Will being retired affect my credit rating, even if I have investments?

June, Sutton

Dear June,

The credit rating any prospective lender calculates for you will largely depend on your credit history, your current level of borrowing and your income. Investments don’t really come into it. Retirement shouldn’t be an issue for you as long as you continue to receive an income, you can afford to repay whatever you are applying for and your past borrowing record shows that you’re a reliable customer. It will certainly help if you continue to maintain a few lines of credit – such as a mail order account, a credit card or a bank overdraft facility – so that you have some recent credit history available on your report whenever you do apply for new credit. The Experian Credit Score can help you see what shape your credit history is in at any time. While this isn’t a score that lenders see, it can be a very helpful guide. (November 2012)

James
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