Aug 27, 2025
When you’re starting out, your credit score has a big impact on your financial health. It directly affects your ability to get a credit card or a loan, and it’s the first thing lenders check when you apply for a mortgage.
But what if you’re retired? You might not think your score matters much once you reach your golden years, but it does.
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In fact, maintaining good credit after you’ve left the workforce is just as important as it was when you first started out.
Here are five reasons why your credit score still counts during retirement.
1. Your living arrangements could change
Retirement often brings lifestyle changes. You may want to downsize to a condo, buy a seasonal home, or move into a retirement community.
The average condo price in Canada is about $626,000, according to the Canadian Real Estate Association, meaning many retirees still need mortgages or financing in order to downsize their living space.
Even if a mortgage isn't required, many retirement communities require a deposit and perform a credit check before approving new residents.
Tip: If you’re planning to downsize or move, a strong credit score helps secure lower rates and smooths approval processes.
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2. You might want to buy a new car
Auto loans and insurance remain major retirement expenses — and both costs could end up requiring your credit history.
For instance, borrowing to buy a car will require an auto loan and with car loan rates ranging between 6% to 10% (or more, depending on your credit history), it pays to have an excellent credit score. The better your credit score — and consumer history — the more competitive the lender's auto loan rate.
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While residents in Ontario and Alberta won't have to worry about their credit score being used to set insurance premiums, Canadian residents living outside of these provinces should be mindful. Turns out auto insurance providers can use your credit score when setting premiums — which will definitely influence your transportation costs in retirement.
Tip: A higher credit score not only lowers your loan rate but can also reduce your insurance premiums in certain provinces.
3. You’ll qualify for more credit card perks
For retirees who travel, credit cards can provide valuable rewards and insurance. So, it's not surprising to learn that nearly 70% of Canadian seniors travel at least once per year, according to Statistics Canada.
Premium cards often offer emergency medical insurance up to age 75 — a perk that can save retirees thousands annually in standalone insurance costs.
Additional perks can include access to airport lounges, discounts of attraction tickets as well as low-cost or freebie companion flights.
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Tip: To qualify for cards with top perks, aim for an “excellent” credit score — typically 750 to 900.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
4. You may decide to go back to work
Retirement isn’t always the end of employment. Roughly 13% of Canadians over 65 are still in the workforce, according to 2024 data from Statistics Canada. Even if you end up doing consulting work, your credit history may be used to confirm that you're a good fit as a contract employee. Employers in finance, government and security-related fields, in particular, may require credit checks, meaning a good credit score can help you land a sweet semi-retirement work gig.
Tip: A healthy credit score can improve your chances of landing part-time, contract or seasonal work.
5. It protects you against the unexpected
Unexpected expenses are a reality of aging, from medical needs to home modifications.
As of 2025, the average cost of long-term care fell between $2,000 and $7,000 per month, depending on the province and level of support required. While savings are ideal in paying for at-home care or home modifications, not all retirees will have a significant lump sum saved for such emergencies. To help, you could consider using lower-cost loans, such as personal loans or a home equity line of credit (HELOC). This type of debt often comes with lower interest rates and the larger borrowing limits allows you to pay for home renovations like ramps or stairlifts. But to get the best rates, you'll need an excellent credit score.
Tip: Keeping a strong score ensures access to affordable credit when you need it most.
How to maintain a good credit score in retirement
The rules don't change when you hit retirement, with the best practices for keeping an excellent credit score staying the same as when you were in your working years. As a rule, pay attention to the following:
- Check your credit report regularly. You can get free reports directly from Equifax and TransUnion. Each bureau may have slightly different data.
- Pay bills on time. Payment history is the single most important factor in your score.
- Keep your utilization low. Try not to use more than 30% of your available credit.
- Don’t close old accounts. Longer credit histories boost your score. If you must close a card, start with the newest.
- Watch for fraud. Seniors are heavily targeted — Canadians lost $567 million to fraud in 2024. Monitor your report for unusual activity.
Bottom Line
Your credit score continues to play a vital role in retirement, influencing everything from your housing options to your access to affordable care. By monitoring your credit regularly and using it wisely, you’ll protect your financial flexibility — and your peace of mind.
—with files from Romana King
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Shane is a reporter for Money.ca. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.
