Retired and Think Your Credit Score Doesn't Matter? Here's Why You Need to Order a Copy of Your Credit Report Before the End of 2025.

Even if you enter retirement with the intention of never applying for another credit card or loan, it's vital to keep an eye on your credit. The main reason is this: It's impossible to know what life will bring next. Even if you have tons of assets sitting in a retirement account, withdrawing the amount you need to cover a "surprise" situation isn't always the smart financial move.

Here are some of the reasons why maintaining a strong credit score continues to matter throughout life.

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Someone else could be using it

If you're not concerned about your credit score, you're probably not regularly checking it. By ordering a free copy of your reports from the "big three" reporting agencies -- TransUnion, Experian, and Equifax -- you can regularly check to ensure no one else is taking out credit in your name.

It's especially important to check if you're retired. If identity thieves wanted to steal a person's credit identity -- someone who wouldn't realize they were a victim of identity theft -- they're more likely to go after a retiree's identification.

Ordering a free copy of your credit report from all three agencies is as easy as filling out a form on AnnualCreditReport.com. Review each report for any inaccuracies. For example, if you see an open account or address you don't recognize, dispute it with the credit reporting agency in question. They have 30 days to verify the information, and if they can't, it must be removed from your report.

Your score never stops mattering

You never know how life is going to unfold. Even if you have zero intention of ever applying for credit again, your credit score still matters. Here's why:

Moving

Even if, like many retirees, you never thought you'd move once you were settled into retirement, the situation can change. For example:

• You could get divorced or become widowed.
• You may decide you'd be happier in a 55-plus community.
• You may want to purchase a larger home to accommodate a live-in caretaker.
• If your spouse is diagnosed with Alzheimer's or some other critical condition, you may decide to move somewhere they can receive continuing care.
• You could decide to purchase a second home in another state.

Tapping into a retirement account doesn't always make sense. For example, market conditions could make it a bad time to sell investments, or withdrawing a lump sum from a 401(k) or traditional IRA could land you in a higher tax bracket. There may be a time when taking out a mortgage in retirement makes more sense, and that's when your credit score is crucial.

And, if you're a renter, it's essential to keep in mind that landlords routinely check credit reports during the application process. If you find a new place you want to live, you don't want your credit report to stand in the way.

Insurance premiums

Being retired doesn't change your need for homeowners, auto, or renters insurance. In nearly all states, home and auto insurers use a credit-based insurance score to determine how likely you are to file a claim.

Research shows that people with strong credit scores are less likely to file claims or to be sued. Since insurers believe this will save them money in the long run, they save their lowest rates for those with high credit scores.

According to Mass Mutual, someone with a credit score of 580-669 could pay hundreds of dollars more for coverage.

Utilities

Let's say a new utility provider comes to town with lower rates than your current provider. If you decide to make the switch, there's a good chance the utility company will run a credit check. Like other businesses, utilities want assurance that they'll be paid, and the closest they can come to that is knowing you've paid your bills on time in the past.

Although you may never have considered your credit score as you developed a retirement plan, maintaining your score is one more way of making life a little easier. If your score isn't quite as high as you'd like, small steps -- like paying all bills on time and paying down debt -- can give it a boost.

Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equifax. The Motley Fool recommends Experian Plc. The Motley Fool has a disclosure policy.