Rewards: Retirement is often associated with travel, recreation and leisure. Such pursuits can be more affordable when seniors utilize rewards-based credit cards that help them finance vacations, weekend getaways and other expenses associated with traveling. Seniors who maintain strong credit ratings into their golden years may have more access to the best travel-based rewards cards than those whose credit scores dip in retirement.
Unforeseen expenses: No one knows what’s around the corner, but savvy seniors recognize the importance of planning for the unknown. The COVID-19 pandemic seemingly came out of nowhere, and among its many ripple effects was the sudden job loss experienced by seniors. The JCHS report found that 21 percent of homeowners age 65 and over had reported loss of employment income related to the pandemic. Unforeseen medical expenses also can compromise seniors’ financial freedom. Maintaining a strong credit rating into older adulthood can help seniors navigate such financial uncertainty more smoothly. Such a strategy can help seniors secure low-interest loans or credit cards that can help them pay down sudden, unforeseen expenses without getting into significant debt.