U.S. Retired Expats -- is there really any good reason to worry about your credit score any more?

[Jingthing]

I came to this question because of something that I read saying older Americans shouldn't stress about maintaining (or obtaining) a good credit score as they age.

 

As someone who has an "excellent" credit score and has for decades, I found this interesting as I do take pains to maintain that level. Like never making a late payment, etc. 

 

I remember the last time I rented an apartment in the U.S. before before buying a home that the rental agent said Wow you have really good credit as if she had never seen an applicant that had before and/or she was surprised that anyone with such good credit would even want to live in her dump. The older lady above me was eventually evicted so I guess she was the more typical tenant there.

 

Of course I understand the benefits of a good credit score living in the US and the penalties for having a bad one,  but living in Thailand it doesn't seem to matter at all either way.

 

Now IF repatriating, that would be different. The same ball game buying a car, renting an apartment, etc. Unless you will be buying a car with cash, buying or already have a home, etc.

 

I guess the advice I read before being about living in the U.S. older people assumed older people have cars they bought for cash and mostly own their own homes.

 

As expats if we don't expect to repatriate, I guess effort made to keep the number up will be wasted.

 

 

[bbko]

Is it time to get a credit card with a high limit, charge everything and then "forget" to pay it, 555

[Celsius]

I am pushing 50 and I always maintain excellent credit score.... in Canada.

 

I do plan on returning and bringing my wife there, but I guess if your plan is to die in Thailand then I would be maxxxxxing my cardz

[Jingthing]

I have a rather specific question.

Many expats including me opened an account at State Department Credit Union while living in Thailand.

Generally you can't open a new bank account while living abroad.

I've heard a number of people being rejected for a new account by SDFCU.

I wonder if they check credit scores as part of their screening process. 

 

[Jingthing]

7 minutes ago, Celsius said:

I am pushing 50 and I always maintain excellent credit score.... in Canada.

 

I do plan on returning and bringing my wife there, but I guess if your plan is to die in Thailand then I would be maxxxxxing my cardz

Yeah I'm sure similar issues would apply to other nationalities, but as I only know about the U.S. system, I limited it to that.

[Jingthing]

I have another "fun" sort of related question.

Many of us with U.S. credit cards do so while posing as U.S. residents and not revealing that we live abroad. 

Suppose you get a Thai credit card either a regular one or secured by a bank account deposit.

In that case, you would of course be giving them your Thai address.

Couldn't that cause a problem with your U.S. credit report as you're telling Visa or Mastercard that your residence is in the U.S. in one case, and abroad in another?

[n00dle]

18 minutes ago, Celsius said:

I am pushing 50 and I always maintain excellent credit score.... in Canada.

 

I do plan on returning and bringing my wife there, but I guess if your plan is to die in Thailand then I would be maxxxxxing my cardz

The thing is that foregners have been doing this for decades and that is why it is nearly impossible to get an unsecured card in Thaland even with employer assistance 
 

over the years i have known quite a few people that simply upped sticks with hundreds of thousands of baht owing -- if a credit rating in Thailand actuall followed people home then folks woudn't default on their payments  

Edited July 30, 2023 by n00dle

[Screaming]

Interesting, I had no idea if I even had a credit score since I have not been back to the mother-land in many years. I have a credit card in the US and only have a Kindle Unlimited subscription that I pay each month with it. I buy nothing else on the card. So I checked my credit score at my US bank and found it has been 803 for a year now even though I have no real credit history. So if I ever get back to the country of ol-sleepy-Joe I am buying a new Porsche and home on credit and then claiming bankruptcy. 

[EVENKEEL]

13 minutes ago, Jingthing said:

I have a rather specific question.

Many expats including me opened an account at State Department Credit Union while living in Thailand.

Generally you can't open a new bank account while living abroad.

I've heard a number of people being rejected for a new account by SDFCU.

I wonder if they check credit scores as part of their screening process. 

 

I believe SDFCU is for Military and DOD personnel. I've been a member for a good 20 yrs when I started a new job with DOD.

 

 

[Jingthing]

6 minutes ago, EVENKEEL said:

I believe SDFCU is for Military and DOD personnel. I've been a member for a good 20 yrs when I started a new job with DOD.

 

 

It's for everyone who joins one of their affiliated organizations. It cost me 5 dollars one time to do that. 

Their main focus of course is State Department employees in the D.C. area and embassy employess abroad. 

But again, it's really open to everyone with a little tweak. 

Edited July 30, 2023 by Jingthing

[Seamaster]

No

 

I've not held a US credit card for 20 years.

 

I'd run credit reports on myself two big corporation I forget which about 2010. They didn't even have me in db. Years leading up I'd dropped all credit cards. I've never carried loans.

 

I don't give it one second of thought.

 

Also, I'm never going back to that shi+hole, dirty, broken, expensive, woke nation. Trying my best to get everything out not moving back lol

[Jingthing]

4 minutes ago, Seamaster said:

No

 

I've not held a US credit card for 20 years.

 

I'd run credit reports on myself two big corporation I forget which about 2010. They didn't even have me in db. Years leading up I'd dropped all credit cards. I've never carried loans.

 

I don't give it one second of thought.

 

Also, I'm never going back to that shi+hole, dirty, broken, expensive, woke nation. Trying my best to get everything out not moving back lol

I don't really have political reasons for this, but I also don't intend to repatriate. But I realize that push come to shove many expats that don't plan to end up going back anyway. Because of that I pay for Medicare Part B. 

As far as usefulness of a good credit score going back, my income wouldn't qualify to rent an apartment back there anyway regardless of the score. So  where would I live? I really don't know. 

Edited July 30, 2023 by Jingthing

[Seamaster]

5 minutes ago, Jingthing said:

I don't really have political reasons for this, but I also don't intend to repatriate. But I realize that push come to shove many expats that don't plan to end up going back anyway. Because of that I pay for Medicare Part B. 

As far as usefulness of a good credit score going back, my income wouldn't qualify to rent an apartment back there anyway regardless of the score. So  where would I live? I really don't know. 

So, you're not going back. Just square that with yourself and dump the part b.

 

You might not be in Thailand but you flat out can't afford states so why fool yourself? B is very expensive now. It would be I think roughly 20-25% my meager SS monthly payout

[CharlieKo]

25 minutes ago, Jingthing said:

I have another "fun" sort of related question.

Many of us with U.S. credit cards do so while posing as U.S. residents and not revealing that we live abroad. 

Suppose you get a Thai credit card either a regular one or secured by a bank account deposit.

In that case, you would of course be giving them your Thai address.

Couldn't that cause a problem with your U.S. credit report as you're telling Visa or Mastercard that your residence is in the U.S. in one case, and abroad in another?

Not sure that really matters. My bank account has UK address, my credit card a Thai address. Still getting my credit card sent to Thailand. So my rating must be OK. On the basis that Mastercard and Visa issue Thai debit cards etc. Those institutions are able to check your credit score in Thailand also! 

[Jingthing]

3 minutes ago, Seamaster said:

So, you're not going back. Just square that with yourself and dump the part b.

 

You might not be in Thailand but you flat out can't afford states so why fool yourself? B is very expensive now. It would be I think roughly 20-25% my meager SS monthly payout

Never say never.

Plans are plans.

Predicting the future is something else.

Paying the Part B doesn't really change my quality of life in Thailand. I know it will probably end up being a massive waste of money.

That's an individual choice expats need to make.

I don't think there is a right or wrong answer for all on that.

 

Edited July 30, 2023 by Jingthing

[EVENKEEL]

4 minutes ago, Seamaster said:

So, you're not going back. Just square that with yourself and dump the part b.

 

You might not be in Thailand but you flat out can't afford states so why fool yourself? B is very expensive now. It would be I think roughly 20-25% my meager SS monthly payout

Part B is like $170./mo  and more if you have additional income

[Lacessit]

I have no idea if I have a credit score, and don't care. The last time I had a credit card was back in the seventies of the previous century. An Amex card, which I soon realized I did not need, and cost money to maintain.

I pay with cash or a debit card. My father taught me to avoid debt like the plague.

[NoDisplayName]

1 hour ago, Jingthing said:

As someone who has an "excellent" credit score and has for decades, I found this interesting as I do take pains to maintain that level. Like never making a late payment, etc. 

What's the point of the question?

 

What would you do differently if not "taking pains" that would affect your score?

 

 

[Jingthing]

32 minutes ago, NoDisplayName said:

What's the point of the question?

 

What would you do differently if not "taking pains" that would affect your score?

 

 

I think the answer to that is too obvious to bother answering. 

[Jingthing]

45 minutes ago, Lacessit said:

I have no idea if I have a credit score, and don't care. The last time I had a credit card was back in the seventies of the previous century. An Amex card, which I soon realized I did not need, and cost money to maintain.

I pay with cash or a debit card. My father taught me to avoid debt like the plague.

Well I have sometimes needed a credit card of some kind.

For examples, paying for an online tax service and a VPN.

[TallGuyJohninBKK]

42 minutes ago, Lacessit said:

 

I pay with cash or a debit card. My father taught me to avoid debt like the plague.

 

Having and using credit cards doesn't necessarily mean the holder is carrying an debt. Many people use them and then pay off the balance at the next payment period with no interest accrued.

 

They're just a financial tool...that can be used wisely, or poorly, depending on the person.

 

And, a lot of credit cards have good benefits included such as cash back or airline mileage earnings that don't typically come with debit card use. So if the holder is a traveler, credit cards can have significant benefits over debit cards.

 

I use debit cards for daily / routine expenses. And credit cards for big ticket items to earn cash back, airline mileage, etc.

 

[TallGuyJohninBKK]

I don't keep and use my credit cards for the main purpose of maintaining a high U.S. credit score, but instead, for the reasons mentioned above.

 

However, I'm also cognizant of the fact that keeping a good/high credit score means that IF I ever did decide or have to go back to the home country, I'd be in good shape in terms of my ability to execute housing rentals or purchases, car loans, etc etc.

 

[Seamaster]

1 hour ago, EVENKEEL said:

Part B is like $170./mo  and more if you have additional income

I'd thought I'd read it was bumped to nearly 200. Thats a ridiculous sum for insurance you've no possibility of using near term or with immediacy.

 

People with what if mentality - indecision costs roughly 12500 over five years. Over 15 years probably pay for an important operation.

[Jingthing]

1 minute ago, TallGuyJohninBKK said:

I don't keep and use my credit cards for the main purpose of maintaining a high U.S. credit score, but instead, for the reasons mentioned above.

 

However, I'm also cognizant of the fact that keeping a good/high credit score means that IF I ever did decide or have to go back to the home country, I'd be in good shape in terms of my ability to execute housing rentals or purchases, car loans, etc etc.

 

Yeah, understood.

Which is why when I read that advice not to worry about it if you're older kind of odd. I think they were making assumptions about what older people's lives are like that may or may not be true. Of course, obviously if you can keep a high score, why not? The point of the advice was don't worry about it. 

[Jingthing]

1 minute ago, Seamaster said:

I'd thought I'd read it was bumped to nearly 200. Thats a ridiculous sum for insurance you've no possibility of using near term or with immediacy.

 

People with what if mentality - indecision costs roughly 12500 over five years. Over 15 years probably pay for an important operation.

Well currently it's about 170.

It's about the permanent penalties IF you repatriate.

 

Edited July 30, 2023 by Jingthing

[TallGuyJohninBKK]

7 minutes ago, Jingthing said:

Which is why when I read that advice not to worry about it if you're older kind of odd.

 

I think the credit rating situations involving older Americans living in the U.S. vs older Americans living abroad are likely to be different.

 

If you're older and living domestically, the odds are greater that you're settled into something and not likely making big future purchases / commitments.

 

But if you're older and living as an expat abroad, there's always the possibility that at some point in the future, you might need or have to relocate back to the states, and doing so could involve a lot of credit-reliant actions to get resettled.

 

[GinBoy2]

1 hour ago, Seamaster said:

So, you're not going back. Just square that with yourself and dump the part b.

 

You might not be in Thailand but you flat out can't afford states so why fool yourself? B is very expensive now. It would be I think roughly 20-25% my meager SS monthly payout

If Part B costs you 25% of your SS check, you really didn't pay much in to the system.

 

Back to @Jingthing OP, I don't think you really need to do anything to maintain a good credit score, other than have a credit card and not have late payments.

 

As he has said previously never rule anything out in life, the universe can have a malicious way of sending you curve balls!

[Seamaster]

20 minutes ago, Jingthing said:

Well currently it's about 170.

It's about the permanent penalties IF you repatriate.

 

Yes and yes.

 

It will continue to go up regardless if you repatriate. You're just not subject to penalities.

 

Why go back? To what? To live exactly where? In your particular case ... with what funds? If you don't have answers now what makes you believe you'll have better answers or alternatives years from now and under duress? Better to accept and to plan your life here / or if need be elsewhere in SEA.

 

I'm not going back. In fact, I'll let my US drs license lapse. Time to let it go.

 

My guess is banking will become a real challenge so we all may need to make big decisions.

 

An additional 175 a month. You could even squirrel it away towards medical or spend it on bimbos.

[EVENKEEL]

For me 2 CC's are mandatory. I just made some int flight plans and my one cc wasn't working so pulled put the other. In the US so convenient to pay with CC for most items on my 3 wk tour.

[Seamaster]

8 minutes ago, GinBoy2 said:

Part B costs you 25% of your SS check, you really didn't pay much in to the system.

I didn't. As little as possible and early retired as well.

 

At 65 it's not 25% but half that > about 12%.

Edited July 30, 2023 by Seamaster