21 Credit Cards for Senior Citizens/Pensioners/Retired
Managing finances after retirement or for the seniors is very difficult because of low or no income (in most cases). This is because majority of the financial products are designed for individuals below the age of 65 years. Such financial products include loan, credit card, insurance, etc. Because of the risks involved, these financial products are not offered to every individual.
In this article we will discuss about the best credit cards for senior citizens after retirement.
A credit card also called as plastic money can be used for payment anywhere in the world. Many restaurants, hotels, petrol stations, online sites, and shops now accept credit cards as a payment method.
Why senior citizens do not get credit card easily?
Income Stops: This is because after retirement the income typically stops (unless someone gets pension). And this is a valid reason for any card issuer to reject card application request because the repayment capacity of the seniors is not consistent after retirement and hence the risk of default is high.
Age: Typically credit cards are offered to individuals below the age of 60. Although chronological age is one of the most common indicators to consider someone as an older adult, the reality is that many times these people still work or need credit products and are usually excluded from the traditional financial system.
3 Ways to Get Credit Card for Seniors/Retired Individuals
However getting a credit card for seniors and pensioners is possible these days. Until a few years ago, credit cards were offered for the better earning individuals only (salaried or self employed). But today credit cards are available for almost every category of individuals including low income earners. However the options are limited for senior citizens because of the reasons stated above.
In India, there are three ways senior citizens can get credit card:
- Against Fixed Deposit
- Against Income
- Add-on Card
Listed in the below table is the list of credit cards for senior citizens offered against fixed deposit and for regular income earner. There are no special credit cards for pensioners and senior citizens. Only the eligibility criteria differs.
21 Credit Cards for Senior Citizens in India
|Sr. No.||Card Issuing Bank||Credit Card Name||Minimum Fixed Deposit Amount or Monthly Income Required||Type of Card|
|1||Andhra Bank||Signature Card||Rs. 10,000||Against Fixed Deposit|
|2||Development Credit Bank (DCB Bank)||Payless||Rs. 15,000||Against Fixed Deposit|
|3||Central Bank||Aspire||Rs. 16,000||Against Fixed Deposit|
|4||ICICI Bank||Coral Credit Card||Rs. 20,000||Against Fixed Deposit|
|5||ICICI Bank||Instant Platinum||Rs. 20,000||Against Fixed Deposit|
|6||Axis Bank||Insta Easy Credit Card||Rs. 20,000||Against Fixed Deposit|
|7||Kotak Mahindra Bank (ING Vysya Bank)||Solaris Credit Card||Rs. 25,000||Against Fixed Deposit|
|8||State Bank of India||Unnati||Rs. 25,000||Against Fixed Deposit|
|9||State Bank of India||Advantage Plus Card||Rs. 25,000||Against Fixed Deposit|
|10||Bank of Baroda||Assure||Rs. 25,000||Against Fixed Deposit|
|11||Union Bank of India||Usecure||Rs. 25,000||Against Fixed Deposit|
|12||Kotak Mahindra Bank (ING Vysya)||Aqua Gold||Rs. 25,000||Against Fixed Deposit|
|13||Kotak Mahindra Bank (ING Vysya Bank)||Galaxia Credit Card||Rs. 1,00,000||Against Fixed Deposit|
|14||YES Bank||Prosperity Reward Plus||Rs. 25,000||Against Fixed Deposit|
|15||IDBI Bank||Aspire Platinum||Rs. 25,000||Against Fixed Deposit|
|16||IDBI Bank||Royale Signature||Rs. 25,000||Against Fixed Deposit|
|17||IDBI Bank||Imperium Platinum||Rs. 25,000||Against Fixed Deposit|
|18||Syndicate Bank||Classic for Senior Citizen||Rs. 5,000||Against Income|
|19||Corporation Bank||Gold for Senior Citizen||Rs. 10,000||Against Income|
|20||Corporation Bank||Platinum for Senior Citizen||Rs. 20,840||Against Income|
|21||Corporation Bank||Signature for Senior Citizen||Rs. 87,500||Against Income|
Note: Above mentioned credit cards from corporation bank are offered against income to individuals having age up to 70 years.
(1) Credit cards against fixed deposit:
Also called as secured credit card, these cards are offered against FD amount kept in the bank and is considered to be the easiest way to get card for senior or any individual in India. Senior citizens FD account will act as a collateral.
Card applicant needs to have a FD account with the bank and card is offered against this deposit account. The card limit is 80% of the FD amount. Most importantly there is no credit history check.
Check out: Credit cards against FD
(2) Credit cards against income proof for retired:
These cards are offered against income to salaried or self-employed or anyone who can show valid income proof. Every bank has minimum income as their first eligibility criteria in addition to credit score, employer, employment types and others.
If a retired individual is working either as a self employed or consultant or full-time job somewhere else then he/she can show income proof such as bank statement, salary slip, income tax returns to prove the repayment capacity.
Check out income requirement by various Indian banks.
You may also like to read – 50 jobs after retirement
Remember the basic requirement by any lender is whether the applicant has repayment capacity or not.
(3) Add-on or supplementary card:
If any of senior citizens family member is using a card for e.g. son/daughter then they can apply for add-on card for their parents. All the benefits offered to the primary card holder will be applicable to supplementary card holder too.
Benefits of Credit Cards for Senior Citizens/Pensioners
(1) No need to carry cash as it can get damaged easily.
(2) Credit card payments are not only convenient, but also very secure. Even if the card is misused by fraudsters, cardholders are rarely liable. It is important, of course, that any card loss is reported immediately and the card is then blocked. This is not possible in case of cash.
(3) Cards are money saver as seniors will earn cashback on purchases. After retiring the objective should be to save as much money possible so that money can come to help as you grow older.
(4) On every transaction made using credit card, reward points are also offered by card issuers which can be redeemed to buy things. So basically senior citizens will get points in return of using the card and these points can be redeemed to make purchases.
(5) There is a free credit period for every card. Typically it is maximum of up to 50 days.
(6) Credit card bills can be paid in multiple ways such as cash, cheque/DD, auto debit, visa money transfer, internet banking.
Hi, I am Nikesh Mehta owner and writer of this site.
I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.