Of course, just about anyone can get a credit card if they have a good credit rating and are not carrying too much overall debt. Even on a fixed income retirees can qualify for a credit card, but there are some considerations unique to retirees that may not apply to the younger set. People who are living on a fixed income have to carefully consider their options, because they don’t have the advantage of increasing their income by working more hours or applying for a better paying job.
Cards For Retirees
- Choose a credit card which fits into your current lifestyle. It goes without saying you want the lowest interest rate you can find – but if you opt for any credit cards with rewards, determine your needs and choose appropriately. For instance, if one of your biggest expenses is groceries, choose a card that offers reward points or rebates on grocery purchases. Then, make sure you pay the balance off monthly so you don’t pay a high rate of interest on your purchases.
- Be aware that the financial construction of the payment schedule, interest rates and other considerations will change, sometimes rapidly. If you are unable to keep up with the changes, you could end up being socked with a lot more expense for your credit cards than you expected. Review any changes carefully, and don’t be afraid to ask for help if you need it to understand what’s going on.
- Don’t apply for a large number of credit cards at one time. Every time you apply for credit cards it will count against your total credit rating and could negatively impact your score, making it more difficult to qualify for other loans or credit cards.
- If you travel a lot, a travel reward card could be a great choice for you. However, keep in mind reward credit cards can carry a hefty interest rate and it can be difficult to redeem the benefits. It might be a better idea to stick with the cash rebate type of cards, because they seem to have an easier redeemable policy.
Good Credit Score the Key
Retirees with a good credit score are certainly able to get a credit card, but they will have a different set of challenges than other age groups. As long as you are aware of what is available and the concerns, a credit card can definitely be an asset to the retired lifestyle.