Obtaining credit as when you become a senior citizen, or as your approach
retirement, is not easy. Learning how age can impact your ability to get
approved for loans and credit is very important. It is vital to note that it is
against the law to be denied credit just because of how old you are.

What is the impact of age on credit ratings?

The Equal Credit Opportunity Act protects people from being turned down for
credit because of their age. Also, individuals over the age of 62 can not be
denied simply because they are no longer entitled to credit insurance.

Even though age is protected when determining whether or not credit can be
granted, there are times when age does influence the chances of loan and credit
approval for seniors.

For example:

-- How close are you to retiring?

-- What is your income?

-- What kind of loan are you applying for? For obvious reasons, it is
going to be difficult for someone over the age of 80 to get approved for any
type of loan or credit.

Why do senior citizens have a difficult time getting approved for loans
and credit?

The older generations originate from a different era, a time when credit
cards were hardly ever used, with cash being paid for almost every type of
purchase. In addition, consumer loans were not as widely used as they are today.
In those days, it was common for people to borrow money from friends and family.
As a result, older Americans are lacking lengthy credit histories, making it
difficult to acquire credit.

Life changes effect seniors and their credit...

It is common for seniors to have to deal with impacting life changes. For
example, retirement and/or death of a spouse usually result in significant
declines in income. It is typical for creditors to want to close joint accounts
when a spouse passes away and have the living spouse re-apply using only their
credit history. Denial is almost certain. Since once spouse has already
deceased, the creditors do not want to risk extending any more credit to the
living spouse, in case they die. The creditors will not be able to collect the
debt if there is no one living on the account.

What can seniors to do help themselves and their credit?

No matter what you age is, you should know what information is listed on
your credit report. It is very important that senior citizens obtain a copy of
their credit profile when a life changing event occurs, death of a spouse or
retirement. Not only are you going to know exactly what accounts are open and
how much is owed, you want to ensure that all of the information is accurate and
up-to-date. It is important that you learn how to correct credit reports.

Also, it is very likely that not all of your accounts are going to be listed
on your credit report. Any missing creditors should be contacted, requesting
that they update your reported information. You can also right a letter to the
credit bureaus that are lacking any info.

It is also important that any joint accounts are being reported as such. If
there are not, contact the creditor and request that the information be
corrected.