There are dedicated incentives and programs available for seniors credit management. These include senior credit cards and senior secured credit programs. Many individuals find it harder to acquire credit as they reach retirement age and/or are considered seniors. This is often particularly true for senior women. It is important to know how age can and cannot affect your ability to access credit. It is illegal for anyone to deny credit solely based on age. Having said that, age can be a factor in terms of the type of credit being applied for and income levels.

Seniors credit scores can be accessed like any other individual's scores through free credit evaluations from one of the many reputable online credit repair websites available, through no-obligation credit consults, and through the government's free annual credit report website.

Why Seniors may encounter difficulty obtaining credit

Times have changed. In the past many decades, credit has become a financial tool very different than it was in the past. Many older adults today have paid cash for most of the things they have acquired in their lives. Many decades ago, loans were more likely to come from family members or friends than from financial institutions. The result of this is that many Seniors do not have a lengthy or strong credit history, if they have one at all. Lack of a credit history often affects the ability to obtain credit.

As well, Seniors often face massive life changes that can affect their ability to acquire credit. Those facing retirement may see their income drop substantially, and those Seniors who have lost a spouse may find themselves in a different income group altogether. Creditors may want to close joint credit accounts that were previously in both spouses names, or have the living spouse reapply using their sole financial history. These and other profound life changes can have a significant impact on a Senior's ability to get credit.

How age affects creditworthiness

The Equal Credit Opportunity Act specifically states that it is unlawful for any creditor to deny credit or terminate credit based solely on age. As well, those over 62 cannot be denied credit only because they are ineligible for insurance on that credit. At the same time as these protections exist to protect Seniors, age can affect the ability to obtain credit for other reasons. These include:

1. other factors affecting creditworthiness, such as proximity to retirement
2. income
3. types of credit being applied for, for example an 80 year old may have difficulty obtaining a 25 year mortgage
4. creditors are able to favor applicants over 62 years of age

Credit Reports

As with other individuals, it is vital for Seniors to request a copy of their credit report from the free annual credit report website or from the credit reporting agencies. This is particularly true after a life event has transpired, whether that be retirement or a spouse's death. The credit report should be thoroughly checked for any inaccuracies, incorrect and out of date information.

A credit report does not necessarily include every credit account you may have. Not every creditor reports credit accounts to the credit bureaus. If a Senior finds that a credit account is not listed, they may request that the credit bureau include these accounts in their credit file. Although some credit bureaus charge for this service, it can be very advantageous in the long term to ensure that all positive credit accounts you hold be reflected on your credit report.

Also important for Seniors credit scores is to ensure that any joint accounts held in the past or being held currently are reported on both spouse's credit report. Although joint accounts should be reflected on both spouse's reports, particularly in the case of women, this can be overlooked.

It's never too late to build a history. Senior credit scores can be helped by special programs dedicated to this age group, including senior credit card programs and incentives and senior secured credit programs.