Use of Credit Cards By Retired Individuals

When a person retires, they should make sure that they have enough in the kitty to spend their lives with comfort and joy. The expenses a person endures after retirement are greater compared to the time when the person was working because there is no income and only expenses exist. The point of concern which arises here is how these retired individuals make use of their credit cards because by the time you retire, you already have some debt pending which has to be paid off. Therefore, an individual needs to make sure that they do not swipe their card often and further add to their debt.

Credit Card used by Retired Man

Furthermore, if you have a credit card which charges a higher APR or annual fees then you should try paying it off as soon as possible and look for a better and competitive rate since retirement leaves you with very less options to consider. However, if you have no debt on your hands then you could use this situation to your advantage. Most credit card companies are now days offering special offers especially for retirees which offer you cash back, traveling packages and other lucrative offers. Therefore if you have maintain a decent credit report throughout your life then at the time of your retirement, you could enjoy some perks.

Tips & Rules for Using Credit Card:

Below we have mentioned some tips or rules for retirees who do not have credit card debt on their hands and want to get the most from the rewards being offered to them:

1. If you pay your balance promptly at the end of each month then there are various rewards which you could enjoy. However, if you keep accumulating debt then redeeming these rewards would fade away.

2. Just keep one credit card at a time or a maximum of two so that you don’t end up ruining your credit score because your credit score is what will help you receive good  retirement offers.

3. Look for a card which offers you with rewards or cash back on your frequent purchases. For instance if you purchase grocery daily on your credit card then the company could offer you cash back schemes.

4. You will be charged an annual fee so make sure that the rewards offered to you compensate for the fees that you pay because paying a higher fee would make no sense when the rewards aren’t of the same percentage.

credit scores talks

5. Keep a track of the terms and conditions which keep changing so that you are not in a wrong state of mind. This will help you keep alert of what changes have been made which either could be of your advantage or disadvantage.

6. Be aware of the capped rewards. Most credit companies tend to put a cap on the rewards which you could enjoy during each month.

7. Do not fall for the travel reward program. Most credit card companies come up with schemes which ask you to spend a certain percentage of amount after which you could redeem point while traveling. Therefore, do not over spend just to redeem such travel points, rather you could spend yourself while traveling from the money you would have saved earlier on.

These are the some factors which retired individuals need to keep in mind while spending after being retired. Often it’s easy to fall in the hole dug by your credit card company but if you are a smart person then keeping these factors in mind will help you make much better decisions.

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