 TITLE: Why Credit Scores Matter in Retirement CONTENT: Why Credit Scores Still Matter When You're Retired\n--------------------------------------------------\nCutting back on borrowing as retirement nears is far from a universal situation (lots of retirees take out new mortgages on condos or vacation homes), and some retirees whose days of big-ticket financing are behind them make the mistake of concluding they can forget about their credit scores. But your credit scores can affect your finances even if you're done applying for loans and credit cards. Here are a few ways low credit scores can cost retirees money:\n*   **Higher interest rates on existing debts.** Many credit card issuers routinely monitor your credit scores for purposes known in the industry as \"account management.\" This practice gives card issuers a heads-up of changes in your creditworthiness, and many issuers reserve the right to change the terms of your cardholder agreement if your credit score declines significantly. They may lower your borrowing limit, increase the interest rate they charge or even close your account.\n*   **Lower rates on insurance.** Auto and homeowners insurance companies often use information in your credit report to generate a type of specialized insurance score, which helps them decide what rates to charge you. Reductions in your credit score could mean higher insurance premiums.\n*   **Security deposits.** If you want to rent construction gear or other equipment for a DIY project, or if you just want to get a Wi-Fi router or DVR from the cable company serving your new retirement community, you'll likely be subjected to a credit check. A fair to good credit score might not prevent you from getting the rental, but it might mean you'll need to put down a higher security deposit than you would if your score were higher. END