Nowadays credit card companies are coming up with products customised as per different age groups and there are many credit card options now available for senior citizens as well. Senior people must choose the right type of credit card so that they can take full benefit of their features. So, what are the factors that seniors should consider when choosing a credit card? Let’s find out.

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Charges And Features

When selecting a credit card, you should first check their charges such as joining fees, renewal fees, interest rates, late payment fees, etc. and choose the one that has the least charges.

Along with charges, you should also check the features offered on the card. Match your spending needs with the features offered on the card and choose the one that suits you best.

Credit limit

Assess in advance how you plan to use the credit card and what your approximate monthly usage would be. Based on your assessment, check the credit limit offered by the card company and choose the one that would be adequate for you. Your card spending should be around 30 per cent of the total card limit to keep the credit utilization ratio within a lower range. If you would often use more than 30 per cent of the available credit limit on your card, it will impact your credit score negatively. So, a higher credit limit can help you in keeping a healthy credit score.

Additional Benefits That Can Make You Feel Good

There are a few cards available in the market that offer benefits like free SPA at the airport, access to golf clubs, free airport lounge access, free teleconsultation with doctors, high reward points on spending, cash backs on regular spending, etc. These features can be attractive to senior citizens.

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What If You Can’t Meet Credit Card Eligibility Criteria?

Due to a lack of regular income from business or jobs and sometimes due to an upper age limit, credit card companies may deny a new credit card to seniors. In such a case, you can apply for a secured credit card that comes with a similar feature to its unsecured variant and use it to enjoy the available benefits.

Finally

When using a credit card, seniors should try to repay the outstanding bill within the due date. They should keep the card details secret and never reveal the details to anybody. Credit cards can provide extra financial cushion to senior citizens and at the same time offer them lots of benefits to enhance their experience during the retirement period.

The author is an independent financial journalist.