While age is not directly a factor of the
FICO score, it can be an important part of it indirectly. For seasoned consumers, it is very important to know your score, especially when you are considering buying a home. Equifax expert Janet Dedrick explains in the recent article, “
The credit score of older consumers have many experiences, just like the people they belong to. When looking at a long credit history, it is important to consider
good debt vs. bad debt. For instance, older consumers may have the good debt of paying off loans in full, greater variety of accounts or deeper pockets to handle debt when it arises. On the other hand, they might have bad debt like losses from investments, late payments or more severe damage like a foreclosure or repossession.
Overall, this longer history means that more experienced homebuyers aren’t as flexible when it comes to repairing their credit score. This is why there are many scams which offer to quick fixes. Unfortunately, the surest way to build or rebuild your credit score is to play by the rules: pay off debt, practice safe budgeting and diversify credit options among accounts. Request a credit report so you know where you stand and don’t hesitate to seek out a financial planner to follow a path for how to change your habits and improve your score if needed.
The credit score remains the key to many
financial goals, especially when it comes to purchasing active adult homes. Check in with the Equifax Finance Blog for more key information for planning your next move, especially when it comes to their retirement, credit and real estate sections.