If you’re getting ready to retire, you’ve probably spent a lot of time thinking about your finances. But have you spent time thinking about your credit card usage? Are you properly managing your balances? Can you get a cheaper interest rate?
A relaxing retirement usually means you’ve secured financial stability. To help you achieve that, we’ve put together four tips for how to manage your credit cards as you transition to retirement. After running through these tips, start your search with a financial search engine like Fiona so you can get matched with cards that meet your financial needs in retirement.
Use Fiona to get matched with credit card offers that meet your retirement needs.
Tip 1: Choose cards that reward your retirement lifestyle.
Think about how you plan on spending during your retirement. What’s in your future: travel, shopping for grandkids and/or eating at your favorite restaurants? Based on your answers, you might be looking for a card with travel points, cash back bonuses or other rewards.
How you plan to spend your time affects what credit cards will work best for you. Take some time to figure out which types of rewards work best for you, so you can apply for the best card for your needs. Having trouble figuring out what rewards will work best for you? Try a service like Birch to see what you’re missing out on!
Tip 2: Secure a credit line increase before retiring.
Since credit lines are based on information like credit score and income, it might be easier to secure a higher line of credit before you retire. Deciding when to retire is a personal decision that only you can make. That’s why it’s crucial to be aware of the impacts and consequences of retirement on your finances. That way you can enter retirement with certainty.
Tip 3: Make sure your cards are used regularly.
Using your cards every month or every other month at a minimum will continue to help keep your credit score active. One easy way to make sure your cards remain in use is to set up an automatic payment on your card. Maybe that’s a streaming service like Netflix or your phone or utility bill. Maintaining active use of your card is important so the account isn't stagnant. This helps keep your credit score healthy.
Tip 4: Pay off balances before retiring.
If possible, it is best to eliminate all credit card debt before you retire. For most folks, their income stream changes drastically upon retirement. That impacts how much debt they can pay off while still meeting their regular expenses. Be sure to be careful with how much debt you transition into retirement with.
Next up? Enjoy your retirement!
If you’re ready to retire - congratulations! Once you run through these tips, you’ll be set to continue to successfully manage your finances as you transition into retirement. You’re also ready to get matched with credit cards that meet the needs of your financial future—try it now!