Everyone looks forward to a comfortable and rewarding retirement, where they can leave behind all their financial woes and reap the benefits of hard work done over the years. Now, if something were to interrupt your journey of peace, that would truly be a nuisance, would it not?
However, retirees too tend to struggle with their finances as they are no longer earning the kind of income they did. This is why it is necessary to maintain your CIBIL score during your retirement years as well so that when you take that leap, you do not have to stress about your finances.
There are numerous ways in which a good CIBIL score can cater to your comforts, here are a few of them:
Credit score affects your insurance premium
Your premium rates are based on your credit ratings. A high credit score will make you appear more trustworthy and less risky. You will have more options and will be able to negotiate the terms and interest rates when you have a higher credit score.
Option to refinance your mortgage
With a good credit score, it would be simple for you to refinance your mortgage. If your financial situation worsens, you can get cash through the cash-out reference.
Ensures savings while spending
Having a strong CIBIL score helps you grab cards with greater rewards and benefits. You can use the reward credit cards to get returns and points on expenditures and food rather than just squandering the funds set aside for retirement.
Easier to obtain loans in the event of emergencies
CIBIL score is an indicator of a person’s creditworthiness and loan approval is based on your score. You might want to apply for a loan in case of any unforeseen events. For instance, it may not be feasible to sell your property right away in the event of an emergency like a fire or any other tragedy. In these circumstances, you can borrow funds from a bank and use it to meet your immediate demands.
Easy financing to follow your passion
With sufficient savings, you can pursue the profession and interests that you were unable to, while in your employment. You may start a company without jeopardizing your savings. Therefore, if you have a decent CIBIL score, it will be an easy ride for you to obtain a loan to cover the expenditures of starting a small business.
The Bottom Line
The importance of a credit score cannot be stressed enough, in today’s world. Credit score impacts almost every facet of your financial life, even after retirement. You just need to be proactive and monitor your credit usage in order to maintain a decent score and lead a stress-free life.
