For Senior citizens, managing finance becomes very hard as they generally have a lower income or they don’t have the ability to work anymore. There are few financial instruments available for the old citizens like a loan where they can get money at lower rates, but they do not offer that much benefit or privilege. However, a product like a credit card is not easily available for them as the maximum eligible age for the same is around 60 years. Credit cards are one of the best financial products ever made as one can enjoy doing transactions with them even at times of cash crunch and earn reward points or cashback on the same. There are tons of credit cards in the market offering great benefits, but it is very hard for seniors or retirees to get a hand on the same.
There are few credit card options available in the market offered by some financial institutions for seniors that almost offer the same benefits and features as other credit cards. Today, we are going to talk about some great credit card options available for senior citizens or retirees. But, before that, we will talk about the popular ways they can get credit cards.
Ways in Which Seniors Citizens Can Get a Credit Card
Many people have a misconception that getting a credit card is impossible for senior citizens, but that is not true. Though it may be difficult, you can always find some ways. Some of the ways in which senior citizens can get a credit card are given below:
- Against Income: This is the most simple and most accepted way of getting a credit card. However, for seniors or retirees, it may be difficult as they have low or no income. But if you have a steady income from different sources like mutual funds, dividends, interest income, rent, etc. then it may be easy to get a credit card. When applying for a credit card, keep your income proof and related documents ready and try hard to assure the bank about your financial ability.
- Add-on Cards: Getting an Add-on credit card is yet another simplest way of getting a credit card. If your son, daughter, sibling, spouse or any related family member is holding a credit card from any bank then you can get an add-on credit card against their primary card. The add-on cards have the same benefits and features as the primary card and moreover, these are issued without any annual charge. The applicant does not need to show the financial documents to the bank and can get an add-on card very easily.
- Against Fixed Deposit: The most effective and most used way of getting a credit card is against a fixed deposit. The cards issued against a fixed deposit is called a secured card. The seniors can use their FDs to get a credit card. There are many credit card options available which are issued against the fixed deposit. Moreover, there is no requirement of having income proof or a good credit score to apply for a secured credit card.
Credit card options for Seniors and Retirees
You can find the list of some best credit cards for senior citizens further in this article:
ICICI Bank Instant Platinum Credit Card
The ICICI Instant Platinum Credit Card is a secured credit card issued by the ICICI bank against a fixed deposit which comes with a zero annual fee. The card offers reward points for every transaction you do with it and also provides benefits across many categories like in movies and dining. Also, the card charges very low-interest rates which makes it a good option. Following are the features of the card:
- 2 Reward Points per Rs. 100 spent
- 1 Reward Point per Rs. 100 spent on fuel purchases.
- 15% discount on dining bills at partner restaurants with ICICI Bank Culinary Treats Program.
- 25% discount on movie tickets on BookMyShow
- 1% Fuel surcharge waiver.
- Lifetime free
|Annual Fee||NIL||Interest Rates||2.49% per month|
|Cash Advance Charge||2.5% of the cash amount transacted subject to a minimum of Rs. 300||Foreign Currency Markup||3.5% on all international transactions|
SBI Unnati credit card
SBI Unnati credit card is a secured credit card issued by the SBI Card and is issued to customers with a fixed deposit of Rs. 25,000 or above. The card offers a reward point for every other transaction you do with it and also offers milestone benefits. Following are the features of the card:
- Zero Annual Charge (For the first four years)
- 1 Reward Point on every Rs 100 spent
- 1% surcharge waiver on all fuel transactions between Rs 500 and Rs 3000
- Rs. 500 cashback on annual spending of Rs. 50,000
|Annual Fee||NIL (For the first 4 years)||Interest Rates||3.5% per month ( 42% per annum)|
|Cash Advance Charge||2.5% of the cash amount transacted subject to a minimum of Rs. 500||Foreign Currency Markup||3.5% on all international transactions|
Check here: SBI Unnati Credit Card Review
Kotak 811 #DreamDifferent Credit Card
The Kotak 811 #DreamDifferent Credit Card is a Secured Credit Card issued by Kotak Bank with no joining/renewal fee. The card offers Reward Points on every Rs. 100 you spend and also 2x Reward Points on all your online spends. It also offers a fuel surcharge waiver, a railway surcharge waiver and much more. Following are the features of the card:
- Lifetime free
- 1 Reward for every Rs. 100 spent.
- 2 Reward Points for every Rs. 100 spent on online purchases.
- Welcome gift of 500 bonus Reward Points.
- Spend-based bonus Reward Points
- 1% fuel surcharge waiver.
|Annual Fee||NIL||Interest Rates||3.5% per month (42% per annum)|
|Cash Advance Charge||Rs. 300 on every withdrawal of Rs. 10,000||Foreign Currency Markup||3.5% on all international transactions|
Bank of Baroda Prime credit card
The BoB Prime credit card is a secured credit card offered by the Bank of Baroda issued against a fixed deposit of Rs. 15,000 or more and no income proof is required. The card offers reward points for every transaction and you can redeem these reward points for exclusive options including shopping, gift vouchers, etc. It also provides other benefits like accidental insurance cover, fuel surcharge waiver, and much more. Following are the features of the card:
- Lifetime free
- Reward points on every Rs 100 spent.
- 1% surcharge waiver on fuel transactions.
- Personal accident insurance cover.
- Convert purchase of more than Rs. 2500 into an EMIs.
|Annual Fee||NIL||Interest Rates||3.25% per month (39% per annum)|
|Cash Advance Charge||2.5% subject to a minimum charge of Rs. 300.||Foreign Currency Markup||3.5% on all international transactions|
The above-mentioned secured credit cards are lifetime free credit cards, therefore these are the best option for seniors or retirees. There are many other secured credit card options that offer tons of benefits but they come with an annual charge. To know more about secured credit cards and for more options, visit here. That was all about the credit card options for old citizens. Let us know your views on the same topic in the comment section below.