There comes a time in life when the hard work is done… you’ve paid off your home, cleared your auto loans, and are free of credit card debt. It’s a time to just time to sit back, reflect and enjoy. With no intention of taking on another mortgage, car loan or relying on credit cards, you might wonder if monitoring your credit is still necessary. The answer is simple: yes, and for several reasons.
The primary reason to consistently monitor your credit is to detect any signs of fraud. It used to be that you could get a free copy of your credit report every year from annualcreditreport.com. However, as of October 2023, you now have access to that report weekly. While checking your credit report weekly isn’t necessary for everyone, reviewing it at least quarterly is a particularly good idea, regardless of your age.
As people age the need for the debt or potential debt often accumulated in younger years diminishes. Older consumers really do not need 6 or 7 credit cards. Having too many credit cards can make you a target for identity theft. Once you reach the age where you are settled, without major debts like a mortgage or car loan, it’s wise to reduce the number of credit cards you hold. Keep the two cards you’ve had the longest with the lowest interest rates and close the rest. This may eliminate some of the good credit history you have, but as long as you still have a couple with an extensive history and your closed accounts are in good standing, your credit scores should remain just fine.
The elderly, especially those living alone, are prime targets for fraudsters. Phone scams, online scams, medical scams and even in-person scams are usually their “weapons” of choice. For many seniors getting a phone call or a visit from someone can be a welcome distraction from daily life and worries, but if the person is unfamiliar, it can pose a serious risk. No matter how friendly a person is, if it is not someone you know it is best to be extremely cautious. Below are some of the most effective ways to protect yourself.
For Phone scams:
- Never give anyone who calls any of your personal information such as date of birth, social security number, bank account information, credit card information, etc.
- If someone calls saying you have “won a prize” hang up. Ninety-nine percent of those calls are scams.
- Do not make payments over the phone, unless it is a call YOU initiated.
- If someone calls and claims to be some long-lost family member, chances are they are not.
For Online scams:
- If you get an email from a bank, even if it is a bank, you do business with, do not respond to it. Call the bank to make sure they sent the email.
- Do not open links or attachments unless you are sure of the sender and that the attachment is safe.
- Agencies like the IRS, local police or sheriff stations will never contact you via email. If you receive anything like this do not respond to it or open any attachments.
- If you have social media accounts, ensure that they are “private.”
- Never wire money to anyone that has approached you via email. If it is someone you know, call them before ever sending money.
For In-person scams:
- Never let a stranger into your home.
- Never leave things like your wallet or purse out in plain sight.
- Put a “no-soliciting” sign on your door.
- Make sure you have a ring cam.
For Medical scams:
- Keep all medical paperwork organized, together and in a safe place.
- Diligently go over all bills and documentation received from healthcare providers to ensure they are for procedures and visits you had.
- Do not carry your Medicare card with you unless you are on your way to a doctor visit.
- Never give any of your Medicare of medical insurance information out to anyone except the doctor’s office, clinic, or hospital you are visiting and never give that information out over the phone.
Falling victim to these scams can lead to identity theft, which can have devastating financial consequences. While credit scores might not be as important to an elderly person as they once were, monitoring their credit report is still important. It is all too easy for someone else to open an account in their name or max out an existing credit card. Placing fraud alerts on your credit report is a simple yet effective way to protect yourself. If a fraud alert is added on one credit bureau (Experian, Trans Union, or Equifax) it will automatically be added to the other two bureaus, so doing it manually on all three is not needed.
If you are elderly or know someone who is and has been a victim of fraud it should be reported not only to local authorities but to the National Elder Fraud Hotline 833-372-8311.