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Finance

Can A Senior Citizen Get A Credit Card?

Credit cards are a must in today’s scenario of financial uncertainty. For example, many self-employed individuals faced financial crises during the COVID pandemic. Those who had credit cards were able to meet daily needs during the COVID pandemic. According to the general credit card eligibility, users should be between 21 and 65 years of age. However, this does not imply that credit card facilities are unavailable for senior citizens. Many banks offer fixed deposit and credit card facilities to senior citizens. Read on to know how a senior citizen can get a credit card easily.

Challenges for Senior Citizens in Getting a Credit Card

For a middle-aged working individual, banks can easily determine creditworthiness. Determining the creditworthiness of a retired individual is tricky for credit card issuers. Usually, credit card issuers have an age limit for credit card applicants. Most banks do not offer credit cards to anyone aged over 60/65 years. Usually, people more than 65 years of age are termed senior citizens in India. However, people over 60 years of age are also called senior citizens in some cases. Since senior citizens aren’t working anymore, banks find it tricky to determine their repayment capacity.

Another reason is that credit card issuers look for credit card longevity. When new credit card users join, issuers look to maintain long relationships with them. Banks do not think they can get longevity by offering credit cards to senior citizens. Also, banks feel like a credit risk is attached to a non-working senior citizen. However, it is not the end of the road for senior citizens looking for a credit card. Many banks have found ways to address the above challenges and offer credit cards to senior citizens. In this era, credit cards are available for everybody, which wasn’t the case a few years back.

Scenarios under which Senior Citizens Get Credit Cards in India

Several scenarios under which senior citizens can become credit cards users are as follows:

  • Many retired senior citizens are pensioners in India. It means they get a particular amount at regular intervals from the state or their previous employer. Usually, pensions in India are offered to senior citizens who retired from government jobs. Many issuers offer credit cards to pensioners above 65 years of age in India. Pensioners can always use their pension amount to pay their credit card bills timely.
  • Let’s say you are a senior citizen with no pension facility in India. You can still get a credit card if you receive funds in your bank account at frequent intervals. Your children or relatives may send you funds at frequent intervals. You can show the bank account statement to get a senior citizen credit card in India. Based on your bank account statement, you can get a senior citizen credit card with a good credit limit. However, this facility isn’t offered by all credit card issuers in India.
  • A senior citizen can become a credit card user in India as a co-signer. Becoming a co-signer means you can become an authorized user of someone else’s credit card. You can use the credit card of your children or relative as a co-signer easily. Some credit card issuers also offer a fixed deposit credit card to senior citizens. You have to make a fixed deposit with the bank, which becomes your senior citizen credit card limit.
  • If you earn even as a senior citizen, you will face fewer hassles in getting a credit card. Many banks offer credit cards to senior citizens who are self-employed, proprietors, or are getting a royalty from a business/brand.

Factors that Improve a Senior Citizen’s Credit Card Application

Some factors that improve your chances of getting a credit card as a senior citizen in India are as follows:

  • If you have paid all your previous credit card balances timely, your credit score should be high. It will help you get a credit card easily as a senior citizen in India.
  • Your repayment capacity and creditworthiness play a role in approving your credit card application. If you can show that you receive funds at regular intervals, you can get a credit card as a senior citizen in India.
  • If you have better relations with a credit card issuer, you may get a senior citizen credit card. It happens when you have been a loyal customer of the issuer for a long period. However, not all banks consider customer longevity to offer senior citizen credit cards.

Why Apply Online for a Senior Citizen Credit Card?

As a senior citizen, you don’t want to stand in queues for credit card facilities. Many issuers have an online portal to accept online credit card applications. Make sure you read the eligibility criteria before applying for a credit card as a senior citizen. Get your credit limit approved as a senior citizen now!

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