Most people know the basic steps in preparing for retirement: Participate in employer-sponsored savings plans and fund tax-benefited savings vehicles; and as the magical age approaches, turn investment strategies into income-generating funds. Yet, too many people on the brink of retirement don't heed an important part of their financial biography: the credit score. In 2005, Experian found that people aged 50-59 had the highest level of non-mortgage debt of any age group, with more than $21,000 on average. Those between the ages of 70-74 had the highest credit score, according to that survey. But another survey found that consumer debt for people over 75 shot up by 160 percent from 1992 to 2004. This means our elders are paying off an average $20,000 of debt on a fixed income. Consider Your Credit Scores Some of these senior consumers are paying extremely high rates for medical or other expenses partially due to not safeguarding their credit scores. Credit scores will not disappear with the first withdrawal from a retirement fund, because even in retirement, there can still be the need for credit. Consider the senior’s need for credit when applying for a new home loan if downsizing; obtaining a reverse mortgage; and qualifying for the best car finance rates. Credit scores incorporate credit history; the amount of credit available and used; number of late and on-time payments; and whether any payments due are in default. Creditors also consider other factors in their credit decisions, including debt and payment history relative to income — a factor sure to change at retirement. Some creditors also review job history, which ends at retirement. Credit scores range from 300 to 850. Higher numbers indicate greater likelihood of repaying debt. A score below 680 usually results in a higher interest rate or denied credit. Safeguarding Credit in Retirement To maintain a good post-retirement credit score, future retirees should understand the basic credit score terms. Going to the bills.com site you will see a quick glossary. Consider the following recommended steps prior to retirement: Pay debt before retirement. As much as possible, credit card debt should be eliminated by funneling money toward paying debt as opposed to being used to shop, dine out or travel.   Live on planned retirement income now. Future retirees should give retirement a "dry run" by living on what they anticipate drawing from retirement accounts. A CPA financial planner can help determine specific income required.   Line up insurance. Review insurance needs, including homeowner's, auto, long-term care, umbrella policies and life insurance; the latter may not even be needed in retirement. Any needed changes should be made while employed. Insurers give their best rates to people with good credit scores; this is easily accomplished while working.   Settle into home and financing. If a move to a smaller home or a condominium is in the works, the right time may be pre-retirement. Mortgage or home equity line of credit terms will likely be better while you are still drawing a paycheck. The tax deductions associated with a move also may be more beneficial while employed. If possible, consider paying off the mortgage while still working.   Keep the cards. Those planning to streamline finances should think twice about closing old accounts. Credit scores are partly determined by comparing debt to credit available. Closing unused accounts while maintaining some debt will create a higher debt-to-credit ratio, which looks like a greater credit risk and lowers the credit score. Use credit cards sparingly and pay them off monthly to maintain a current credit history.   Avoid payday loans. In a financial emergency, ask an employer for an advance; call a creditor to ask for a delayed payment; or borrow money from a relative. Payday loans have rates up to nearly 200 percent a year, a terrible path into a debt snowball that can destroy financial security.   Check credit reports now and frequently later. Don't end credit vigilance when you retire. Everyone should check credit reports at least once a year; more often for those who plan extensive travel, which exposes seniors to greater risk for fraud and identity theft.   Retirement should be a relaxing time. Anyone can make the most of it by securing every aspect of finances first, starting with the credit score. About the Author Brad G. Stroh is the co-founder and co-CEO of Bills.com, a free one-stop personal finance portal, located in San Mateo, CA. He also is co-founder and co-CEO of Freedom Financial Network, which provides consumer debt resolution services. Brad can be reached at brad@bills.com.