Is It Harder for Seniors to Get Credit Cards?

An Experian report estimated that baby boomers carried an average of 4.8 credit cards in the second quarter of 2019, more than any other generation, according to the Daily Progress . Yet several factors may add to seniors' difficulty in securing approval for credit cards. For example, retirees who are living on less income could have less chances of approval — although they can rely on more income than just a traditional salary, when Social Security benefits, income from investments and retirement, and dividends and interest come into play. Credit scores also could affect an older adult's chances of getting credit card approval, as being debt-free may not be enough to rate a score that eases approval. Equifax said 91.5 million consumers in the United States either have no credit file or have insufficient information in their files to generate a traditional credit score. Moreover, having only credit card accounts in a credit file but no installment accounts like mortgages or car loans can be counted against approval, since credit scoring models like to see a mix of credit. Seniors can improve their chances of being approved for credit cards by checking their credit reports, becoming authorized users, building credit with a secured credit card, mulling a credit-building installment loan, and keeping long-held accounts open.