21 Credit Cards for Senior Citizens
Managing finances after retirement or for the seniors is very difficult because of now 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 is about credit card for senior citizens.
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 means of payment. So basically money is available easily when enough cash is not available.
Why senior citizens do not get credit card easily?
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.
However 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 very few 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.
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 need to have a FD account with the bank and card is offered against it. The card limit is 80% of the FD amount. Most importantly there is no credit history check.
Credit cards against income: These cards are offered against income to salaried or self-employed. Every bank has minimum income as their first eligibility criteria in addition to credit score, employer, and others.
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.
There are many other banks offering credit card for senior citizens in India. And the same shall be added to the above table soon.
Benefits of Credit Cards for Senior Citizens
(1) No need to carry cash as it gets 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.