Creditworthiness is often based to a large degree on credit reports. These credit reports have a large impact on an individual's credit score. The fact that these scoring systems rely so heavily on a person's credit history can negatively affect Seniors who may lack a lengthy or strong credit history. Although many believe paying cash for what they buy is sound financial strategy, this can negatively impact a credit history. There are ways for Seniors to address this shortcoming.

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Tips:

1. Income
   Income is an extremely important aspect determining credit worthiness. Seniors, particularly those who are retired, should consider every source of income they have, including pensions, salaries from part time employment, Social Security and any retirement benefits they may have. As well, income includes other sources Seniors often have, including stocks, bonds, money market funds, both savings and checking accounts and additional real estate they may own.

2. Assets
   Whether you own your home outright, or any portion of it, is considered an asset and viewed favorably. As well, cars, boats, etc. are all assets.

3. Payment History
   Those who have paid bills in a timely manner will see this fact reflected on their credit history. This can be very important for Seniors.

4. Debt
   The less the amount of debt and the faster that debt is paid off is particularly important for Seniors.

Although age can affect a person's ability to, for example, obtain a longer term loan or mortgage, Seniors can concentrate on shorter term loans and credit requirements in an effort to satisfy a creditor's risk concerns. Debt Consolidation Services can provide professional advice and help for those needing to get out of debt fast!

How Seniors can build a Credit History

If a lack of a credit history is the reason a Senior is denied credit, they may want to begin taking steps to build one. Usually, the first steps are to establish a small line of credit through a local bank and apply for a credit card from a local department store or local business. Ensure when you apply for these credit accounts that the creditor intends to report your history to a credit bureau. Once you are given these credit accounts, ALWAYS pay the bill balances regularly and on time. Use the credit and pay it back. This way, a positive credit rating will be built over time and use.

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