|
 Seniors and credit
Tips for Seniors wanting
credit
When a spouse dies
Seniors and Credit
Many individuals find it harder to acquire credit as they reach retirement
age and/or are considered seniors. This is often particularly true for
senior women. It is important to know how age can and cannot affect your
ability to get credit. It is illegal for anyone to deny credit solely
based on age. Having said that, age can be a factor in terms of the type
of credit being applied for and income levels.
Seniors needing help with their credit can request a free credit
evaluation from the expert paralegals at Fowler and Fowler Credit and Debt
Solutions, Inc..
Click here for a FREE online credit evaluation - no
obligation, no cost!
Click here to order credit repair services online now!!!
Learn more about
credit repair services here.
Why Seniors may encounter difficulty obtaining credit
Times have changed. In the past many decades, credit has become a
financial tool very different than it was in the past. Many older adults
today have paid cash for most of the things they have acquired in their
lives. Many decades ago, loans were more likely to come from family
members or friends than from financial institutions. The result of this is
that many Seniors do not have a lengthy or strong credit history, if they
have one at all. Lack of a credit history often affects the ability to
obtain credit.
As well, Seniors often face massive life changes that can affect their
ability to acquire credit. Those facing retirement may see their income
drop substantially, and those Seniors who have lost a spouse may find
themselves in a different income group altogether. Creditors may want to
close joint credit accounts that were previously in both spouses names, or
have the living spouse reapply using their sole financial history. These
and other profound life changes can have a significant impact on a Senior's
ability to get credit.
How age affects creditworthiness
The Equal Credit Opportunity Act specifically states that it is unlawful
for any creditor to deny credit or terminate credit based solely on age.
As well, those over 62 cannot be denied credit only because they are
ineligible for insurance on that credit. At the same time as these
protections exist to protect Seniors, age can affect the ability to obtain
credit for other reasons. These include:
1) other factors affecting creditworthiness, such as proximity to
retirement
2) income
3) types of credit being applied for, for example an 80 year old may have
difficulty obtaining a 25 year mortgage
4) creditors are able to favor applicants over 62 years of age
Credit Reports
As with other individuals, it is vital for Seniors to request a copy of
their credit report from the credit reporting agencies. This is
particularly true after a life event has transpired, whether that be
retirement or a spouse's death. The credit report should be thoroughly
checked for any inaccuracies, incorrect and out of date information.
A credit report does not necessarily include every credit account you may
have. Not every creditor reports credit accounts to the credit bureaus. If
a Senior finds that a credit account is not listed, they may request that
the credit bureau include these accounts in their credit file. Although
some credit bureaus charge for this service, it can be very advantageous
in the long term to ensure that all positive credit accounts you hold be
reflected on your credit report.
Also important for Seniors is to ensure that any joint accounts held in
the past or being held currently are reported on both spouse's credit
report. Although joint accounts should be reflected on both spouse's
reports, particularly in the case of women, this can be overlooked.
Click here for a FREE online credit evaluation - no
obligation, no cost!
The U.S. government's FirstGov for Seniors
website offers a wealth of information useful for Seniors, including
credit and financial
information. CNN's Money pages offer excellent information on all
matters related to Seniors
personal finance.
|
