The best ways to build excellent credit are much different in your 20s than in your 50s.
1. Dominate your use of credit
Once you reach 50, it is time to begin to wean yourself from credit cards. “If you have 50 or 60 years old and you’re always the repayment of debt, you probably do not have much put away savings for retirement,” said Mr. Lin.
To ensure that you do not have debt in your golden years, focus on the repayment of existing loans and avoid taking large loans such as mortgages.
“At this point in your life if you are not equal to or greater than 780 FICO then you have done or are doing something wrong,” said Ulzheimer. “Consumers decades of experience in credit not only credit reports and age, a base for excellent FICO scores, but should also be responsible enough to know how to handle all types of credit obligations.”
2. Use credit cards strategically
maintenance of credit is not the same as abstinence credit. You must continue to use your credit cards on purchases of small because the activity is a factor in determining your FICO score.
“Pay the check in a restaurant by using your credit card, then pay the balance in full,” Quinn suggests. “That way, if you apply for credit in the future, your account may be active.”
Be careful when you close the accounts. You do not want to shorten your credit history and affect your credit score by closing your old account.
3. Keep an eye on your credit score, even if you do not apply for new accounts
Ulzheimer says people over 50 are more vulnerable to fraud because they often stop paying attention to their credit reports. That’s why people over 50 should check their results, even if they do not apply for new loans or debt.