When credit scores shouldn’t be your top priority

NEW YORK – At some point, you’ll buy your last car and refinance your last mortgage. Surely then you can stop worrying about your credit scores.

Well, not really, although there are situations when credit scores shouldn’t be anyone’s main concern.

Let’s start with some reasons why credit scores still matter. A drop from excellent to poor credit can more than triple homeowners’ premiums in some states. Credit can have a bigger impact on auto insurance premiums than any other factor, including someone’s driving record, according to an investigation by Consumer Reports.

That’s not all. Cellphone companies often reserve their best deals for those with the best credit. Many employers check credit reports, which could be an issue should you want to work in retirement. Utilities and landlords also typically check credit scores. Senior housing, assisted living and continuing care retirement communities also may use credit histories or scores to evaluate applicants.

You might not be done borrowing

You may need to borrow money to pay medical bills, replace a car, help a family member, make home repairs or remodel your home to allow you to age in place. If you have to move, you may need a new mortgage. If money gets tight, you may want to access some your home equity with a reverse mortgage.

Keeping good score isn’t that hard

A single credit card is enough to maintain good credit scores. The card should be used lightly but regularly and balances paid in full, since there’s no credit score advantage to carrying debt.

Financial well-being sometimes requires putting concerns about credit on the back burner. Some examples:

You’re struggling to pay your bills: It makes little sense to keep sending money to credit card companies and most other lenders if you’re having trouble paying for necessities: shelter, food, utilities, medications. You also need help if you’re being sued over debt or hounded by collectors. Consider talking to a credit counselor affiliated with the National Foundation for Credit Counseling and to an experienced bankruptcy attorney about your options.

You need to file bankruptcy: Bankruptcy is not the credit score killer it’s often reputed to be. Credit scores typically plunge in the months before a bankruptcy filing, but then start to rise soon after. With responsible credit use, it’s possible to get back to near-prime credit scores within a few years after bankruptcy.

It’s impossible to predict the potential costs of lower credit scores, but older people with less reason to borrow may well decide the hit to their scores is better than continuing to struggle for the rest of their lives.