Pensioner Credit Cards

Credit cards are a vital aspect of modern life, but how easy are they for pensioners to obtain? Here we examine the issues facing senior citizens.

High risk?
It’s unfortunate, but where loans and credit cards are concerned, lenders consider pensioners to be high risk borrowers. But they have needs, too. While the chances are that they are no longer employed, they still have other forms of income. And many of them will be sitting on considerable equity, have long since redeemed their mortgages.

Despite legislation that prohibits age discrimination, pensioners remain restricted as to what personal finance they might be considered for.

Why is this?
The biggest issue for any credit card company will be the lack of regular monthly income to pay off purchases and interest. Health is another aspect. The older a person is, the more prone they are to illnesses. Their income may not be enough to juggle repayments with expensive medical bills, particularly when hospitalisation is required.

Will any lenders consider pensioners?
Yes. With credit cards, the crucial question that any lender will ask at the outset is a simple one. Will this customer be able to honour monthly commitments within the agreed limit?

So while there might not be a salary to offset against outgoings, there might be many other factors: rent from property, regular pension payments, not to mention the absence of outlays incurred by younger cardholders: family costs, school fees, vehicle expenses.

As long as the application form can demonstrate the strength of available funds, then there will be options.