Credit card is playing an important role in the online payment industry. Nowadays, everyone needs a credit card due to its endless benefits. Cardholders can get reward points for shopping with credit cards. Moreover, they can redeem the exclusive cashback offers with the help of the credit cards. However, considering the present situation where everyone is losing their jobs, it is very difficult to be eligible for the credit cards.
Well, people believe that getting credit cards for baby boomers is easy. Baby boomers refer to the people born between 1940 and 1965. But, the fact is that older Americans are facing difficulties to get credit cards. There are certain reasons behind it:
Less Income
The credit card application process is quite complicated as well as lengthy. Here, the person has to submit the annual income report. On the basis of this, the bank issues credit card. People having a low annual income will not be eligible for the credit card. Old people generally live a retired life with less income. Moreover, they don’t have any stable employment income. All these crucial aspects affect the chances of credit card approval.
However, there are certain things that people belonging to old age can show. These are as follows:
- Income statement of the spouse
- Income statement from retirement and investments
- Salary slip of seasonal or part-time job
- Social security benefits
Low Credit Score
If you are an old American and still having a low credit card score, you will not be eligible for the card. If you have a thin credit file, banks will not issue a card for you. According to an analysis published by the credit bureau in 2019, almost 91.5 million consumers do not have sufficient credit information or credit file. Therefore, they are unable to generate a traditional and good credit score.
Average ‘Mix of Credit’
If you still have a credit card and paying the EMIs, it does not mean that you will be eligible for another card. Credit score depends upon the type of ‘mix of credit’ you have. Yes, if you have not yet experienced different kinds of borrowing, you will have an average ‘mix of credit’. In such a situation, banks will not approve the credit cards. There are mainly two different types of borrowing- Instalment and Revolving.
Revolving borrowing refers to home equity lines and credit cards. On the other side, instalment borrowing refers to a standard payment that cardholders have to pay in every month.
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