What’s the best way for senior citizens to get a credit card?
Most major banks have a cut-off age of 60 for credit cards, with a few allowing those up to 70 years of age to apply for one. This prevents many senior citizens from getting credit cards even if they fulfill the income and credit score criteria. However, there are workarounds.
A credit card against a fixed deposit (FD) is a sure-shot option. Sumanta Mandal, founder of Technofino, an online platform that helps consumers compare and choose credit cards, said: “One option is to get a ‘secured’ card that is only issued against an FD. However, many senior citizens don’t know that most other credit cards, along with income criteria, also have pledging an FD as one of the eligibility criteria, which they can use. For instance, you can get an HDFC Infinia card if you have ₹5 lakh monthly income or by pledging a minimum of ₹10 lakh FD as lien."
Apart from these guaranteed options, there’s another way – using your long-standing relationship with your bank. Read on to find out more.
The structure of a credit card issued against an FD is simple—you typically get 70-80% of the FD amount as the credit limit and the card remains valid so long as you pay the bills on time. If you default, the bank breaks the FD, recovers the outstanding amount, and returns the rest after closing the credit card.
A popular secured card that is generally pitched to seniors is IDFC First Wow. It is a cashback card with relatively low rewards. However, the upside is that it earns cashback on most categories, except rent and fuel, and gives 100% of the FD amount as credit limit. A more rewarding alternative that seniors can look at is the HDFC Millenia card.
Also read: Why banks flag business expenses paid on personal credit cards
Senior citizens should
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