CREDIT WHEN 62+
Getting credit when you are over 62 can be challenging, especially if you have paid with cash all of your life. As a result, many seniors have “no credit history.” Another obstacle to getting credit for seniors is a decrease in income. Potential creditors may deny seniors’ credit applications due to “insufficient income.” Finally, the death of a spouse can also be a road block in obtaining credit. When your spouse dies, creditors may try to close joint accounts. A “joint account” is one for which both spouses applied and signed the credit agreement.
In the good old days, applying for a loan meant asking your local banker – someone who knew you in the community. Now, personal evaluations for lending are a thing of the past and credit grantors use electronic applications. The computer application process evaluates your income, credit history, credit card accounts, auto loans and outstanding balances. While it may make sense to pay with cash, cash will not give you payment history and boost your ability to get credit.
The primary indicator of a credit applicant’s ability to repay a loan is income. Credit grantors who consider income during the application process must consider all types of income, including part-time wages, Social Security, pensions and other retirement benefits. Seniors may also want to inform the potential lender about assets, such as their home, additional real estate, savings and checking accounts, money market funds, certificates of deposit, stocks and bonds.
Thus, credit discrimination, access to free credit reports and credit report errors can significantly impact the quality of life for seniors. Have you or a loved one had an issue with a potential creditor because of a credit report error? Have you requested your free credit report? Click HERE to order your free credit report, or contact the consumer credit lawyers at Burke, Harvey & Frankowski for a free legal consultation.
