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.

People who liked this Post also read

  • How to Negotiate Credit Card Debt Settlement Yourself?
    If you owe a great amount of debt on your credit card and do not have funds to pay for it, then it is advised that you should think of debt settlement. This is a process in which the terms and conditions on your card are revised so that it becomes easier ...
  • Erase Debt with Credit Card Debt Settlement
    You can actually erase 50% to 70% of your credit card debt easily if you know basics of credit card debt settlement process. you can do it yourself, hire a lawyer or go to a debt relief company....
  • 0% Credit Card: Purchase vs Balance Transfer Cards
    There is a slight difference between a 0% Balance Transfer Credit Card and 0% Purchase Credit Card (Store Card). You should choose one according to your specific needs and requirements to save money on interest rate charges....
  • How to Choose Free Balance Transferring Credit Cards?
    Many companies and banks are providing credit cards and debit cards to facilitate their costumers. They charge different charges, on the facilities provided by those cards. So always try your best to find out the best option that suits you according to yo...
  • How to Check Weekly Credit Card Rate Report
    CreditCards.com is the leading online credit card marketplace connecting consumers with multiple credit card issuers, including several of the 10 largest companies in the United States, based on credit card transaction volume....


is an experienced journalist.

Leave a Reply

CommentLuv badge

© 2011 Loan Mortgage Credit!. All rights reserved.