Why Seniors Don't Have to Worry about their Credit Scores
People try to pay their bills on time in order to keep their credit scores high. The better your credit, the greater the chances of getting a loan, mortgage, and credit card at a low rate. But too many seniors skimp on their onw needs trying to make payments on old debts in order to maintain a higher credit score. In this video, Attorney Eric Olsen explains why it’s OK for many seniors to let their credit scores sink and focus on paying on necessities instead of old debt.
0:00 Introduction to Attorney Eric Olsen and his debt and credit knowledge
1:21 Why credit scores aren’t as important for seniors as for younger people
2:32 For many low-income seniors, their income is protected by federal law
3:34 For many low-income seniors, necessities are all they can afford
4:08 If you’re a low-income senior, even if your credit score is high, no legitimate lender will lend you money
5:59 If you want to keep a single credit card with a low balance, go ahead, as long as you use it
7:16 Many judgements and late payments aren’t reported on credit reports
9:08 If a senior stops paying a credit card and gets sued, it’s not the end of the world
10:18 Seniors think they need good credit to rent a home, but HELPS Nonprofit Law Firm can help them
16:06 How to contact HELPS
16:31 Don’t sacrifice everything to keep your credit up
In this video, Attorney Eric Olsen, Executive Director of the HELPS Nonprofit Law Firm, explains why low-income seniors struggling with debt shouldn’t worry about paying bills in order to maintain their credit scores. The former bankruptcy attorney details why seniors don’t need high credit scores like younger people do. Among the reasons:
* much of their income like Social Security is protected
* they don’t need to buy a car, and may not be able to afford one
* they may already own their home
* if they need to rent a new home, the HELPS Nonprofit Law Firm will help explain to a prospective landlord that their income is protected and why they would make a good tenant.
The former bankruptcy attorney also lays out that if you’re a low-income senior, even if your credit score is high, no legitimate lender will lend you money. He recommends paying for your needs instead of trying to pay off your credit cards. If you want to keep a single credit card with a low balance, go ahead, as long as you use it, but low-income seniors should let the high-balance cards go.
Jeff Hoyt is SeniorLiving.org’s Editor-in-Chief.
For more on why seniors shouldn’t worry about old debts, watch
For how to deal with debt collectors, watch
To learn how seniors can avoid paying taxes, watch
To learn when Seniors should consider Bankruptcy, watch
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To contact the HELPS Nonprofit Law Firm, call 1-855-435-7787 or visit helpsishere.org.