How to Qualify for a Credit Card if You Are over 60

Credit cards are an important money management tool for all customers regardless of their age. They can give you lots of freedom and peace of mind due to their flexibility and a great purchasing power. However, the elderly people who have always lived on a cash-only basis may find it difficult to qualify for a credit card. The reason is simple: they have no credit history. Our article will tell you how you can get a credit card if you are over 60 years old.

Being an elderly person doesn't mean that you don't need money any more. You can face with the situation when children or grandchildren support has run up your expenses. Or you can face divorce or a job loss. That is when credit cards become very handy.

Under the Equal Credit Opportunity Act (ECOA), a creditor may not deny you a credit card because of your age, race, sex, religion, marital status or national origin. However, this law does not guarantee that you'll get a credit card - there are other factors that credit companies take into consideration.

First of all, lenders examine your credit report: payment pattern, credit card accounts, outstanding balances and other credit activity. Credit reports show whether you have necessary credit card management skills to make well-considered financial decisions.

The next main indicator that you can repay credit is your current income. It includes your salaries from part-time work, pensions and other retirement benefits. You can also tell creditors about other sources of income: additional real estate, checking and savings accounts, deposits, stocks and bonds.

If you are denied credit, you have the right to know why. There may be an error in your credit report or the computer system has not evaluated all relevant information. In this case, you can ask the lender to reconsider your credit card application.

Under the Fair Credit Reporting Act, you have the right to get a free credit report if you didn't get approved because of the information it contains. The law requires the creditors to tell you the name, address and phone numbers of the credit bureau that provided the information.

Ask the credit company to specify the data that made you a high credit risk. If you find inaccuracies or outdated information in your credit report, ask the credit bureau to correct them. If you prove that you are right, they will change the incorrect data. Otherwise, you can add a 100-word explanation and ask to attach it to your file. Anyone requesting a copy of your credit report will also receive your statement.

If you are denied a credit card because you have no credit history, consider establishing one. There are several ways to prove that you can repay your credit: you can apply for a small line of credit from your bank or ask a relative to add you as a joint party to his or her credit card. You can also apply for a secured credit card. Your credit line will be secured by your deposit in the bank, minimizing the creditor's risk. Secured credit cards have higher fees and interest rates, so your goal is to charge what you can afford to pay off. By making regular on time payments you can establish a solid credit history to qualify for unsecured credit card offers.