Credit Cards For Pensioners

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There are credit card companies that will issue credit cards for pensioners, but recently there has been a lot of adverse press on this subject. This has meant that previous issues of cards have come under criticism, as the level of credit card debt is increasing amongst pensioners. There are, however, a few companies that specialize in credit cards for the over 50's and, therefore, may be suitable for some pensioners. It is worth remembering that any credit card application will trigger a credit check and that it is not advisable to do too many applications in a given period. For pensioners, this is no different, and you need to consider the type of credit card use that you expect to need, before application.

Uses of credit cards

If you are likely to be able to pay your credit card balance in full each month, then it may be worth setting up a savings account that is solely for the purposes of paying your credit card. You also need to look at cards that give you the longest interest free period and possibly offer you rewards and discounts on shopping and consumer goods. This way, your credit card use, has a dual purpose. If you are unlikely to pay your credit card balance in full each month, but want to use it to buy larger-priced items, and pay off over a period of time, then you need to find the lowest interest rate cards available, and perhaps even those with an introductory 0% interest. If you need to spread this purchase cost over 12 months or more, a personal loan may be a better option, as credit cards should only be used for short-term borrowing, and even an overdraft can be a cheaper option for very short periods of time.

Comparing credit cards

Saga is a credit card provided by the company best known for services for the over 50's including holidays, which is how most people know them. Currently, it has a 0% introductory period of 9 months and an 11.9% APR, with an interest free period of 55 days. This is obviously still subject to a credit check, but may suit a pensioner who needs to spread the cost of a purchase over a few months and is also helpful for a pay in full approach. The main issue with credit cards for pensioner is the level of pension they receive each month. It is crucial that anybody who is applying for a credit card considers how much they can afford to pay each month from their disposable income and pension. As a note of caution, the debt issue appears to be where an unmanageably high limit is offered on the credit card which then cannot be paid back in a reasonable period of time.


  

Source: Credit Cards For People With Bad Credit Rating


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