Maintaining your credit isn’t just for first-time homebuyers or those rebuilding after financial hardship. It’s a lifelong financial habit that matters well into your retirement years. Like a balanced budget or a well-managed investment portfolio, your credit health is a dynamic part of your financial toolkit. It can influence your ability to refinance a mortgage, qualify for a home equity line of credit, or co-sign a loan for a loved one. And yet, many near-retirees shift into autopilot, assuming their credit no longer matters once they’re no longer earning a traditional income.

That assumption can be costly. According to the Consumer Financial Protection Bureau (CFPB), older adults continue to experience the effects of credit-related decisions well into retirement, especially when they encounter unexpected health costs, need to relocate, or assist family members financially. Ensuring your credit profile remains strong gives you more options, greater financial flexibility, and fewer hurdles when it matters most.

Whether you’re just a few years from retirement or already navigating the transition, here are five ways to proactively fine-tune your credit and set yourself up for long-term financial resilience.

1. Reassess Your Credit Utilization

One of the most significant factors in your credit score is your credit utilization ratio which is how much of your available revolving credit you’re using compared to how much credit you have available to use. While many retirees carry less debt than younger borrowers, it’s still easy to let balances creep up if you’re not watching closely.

Aim to use no more than 30% of your total available credit across all accounts. Ideally, keep it closer to 10%. If you’re using more than that, consider paying down balances or requesting a credit limit increase (without increasing your spending). This demonstrates to lenders that you manage credit responsibly and don’t rely too heavily on it.

2. Keep Your Oldest Accounts Active

Length of credit history accounts for about 15% of your credit score, and older accounts often boost your profile simply by demonstrating long-term responsible use. Unfortunately, many retirees close credit cards they no longer use, especially if they’re focused on simplifying their finances.

Instead of allowing old accounts to close periodically if there are no balances, use them for small purchases and pay them off in full each month. This keeps the accounts active, preserves your credit age, and may positively impact your score.

3. Monitor Your Credit Regularly

When you’re no longer applying for loans frequently, it’s easy to forget about checking your credit report. But fraud, errors, or identity theft can still occur and older adults are frequently targeted in scams that can damage credit and financial security.

Make it a habit to check your credit reports from all three major bureaus, Equifax, Experian, and TransUnion, at least once a year for free at AnnualCreditReport.com. Reviewing your report around tax time can be an easy way to remember this important step. Regular reviews can help you catch inaccuracies or suspicious activity early, giving you time to dispute them. For added peace of mind, consider enrolling in a reputable credit monitoring service to stay ahead of potential issues. Many major credit card companies offer this as an added benefit to their offerings so be sure to check with any credit card companies you’re already familiar with.

4. Diversify Your Credit Responsibly

Having a mix of credit types, such as revolving accounts (credit cards) and installment loans (mortgages or car loans), can improve your credit score by showing you can handle different kinds of financial responsibilities.

If you’re still managing a mortgage or auto loan, you likely already have some credit diversity. But for retirees who are completely debt-free, adding a small installment loan or maintaining a low-usage credit card can help maintain a healthy credit mix. Be strategic: never borrow money you don’t need but recognize that responsible credit usage keeps your profile active and favorable.

5. Understand the Role Credit Plays in Retirement Planning

Good credit isn’t just about qualifying for loans. It’s about unlocking choices. Whether you’re thinking about downsizing, moving closer to family, renovating your home to age in place, or even tapping into your home equity, your credit health plays a crucial role. For instance, qualifying for a home equity line of credit (HELOC), a cash-out refinance, or even a reverse mortgage loan requires a sound credit history and clean record.

Speak with a trusted financial advisor or mortgage specialist who understands retirement planning. Ask about the credit requirements tied to options like the FHA-insured Home Equity Conversion Mortgage (HECM) program or conventional refinancing tools. Planning ahead while your credit is still in great shape can make these transitions far easier down the road.

Why It All Still Matters

As you move into retirement, your needs evolve but your access to flexible financial tools should not diminish. Life may present new goals: moving to a different climate, helping a child purchase a first home, or making your current home safer and more comfortable for aging in place. All of these possibilities benefit from good credit.

Staying engaged with your credit doesn’t mean taking on unnecessary debt. It means protecting your financial standing and ensuring you have the freedom to make the best decisions for your next chapter. By tending to your credit with the same care you give your savings or estate planning, you ensure that you remain in control, no matter what retirement looks like for you.