Credit Cards for Senior Citizens

In your golden years, you generally have more time to do whatever you want – whether that means international or domestic travel, eating out with friends, or simply taking it easy. On the other hand, many senior citizens have more-or-less fixed incomes, so you may also be looking for ways to help your dollars stretch further toward those goals.

Used responsibly, credit cards can be handy tools to help senior citizens achieve the above. A wide variety of credit cards offer different benefits for senior citizens, so it’s important to consider your goals, spending patterns, and financial resources when choosing credit cards to meet your needs. Two main categories of credit cards can assist:

Rewards credit cards: With rewards credit cards, you earn rewards points as you spend with the card. Some credit cards even offer welcome offers, allowing you to accrue points more quickly. You can redeem your points in a number of different ways, depending on the card issuer. Typical redemption options include travel, dining, entertainment, and more.

Cash back credit cards: Cash back cards work similarly to rewards cards, but instead of rewards points you get cash back, usually as a statement credit. Depending on your credit card issuer, you may receive the same percentage of cash back on all your purchases, or there may be different tiers associated with specific shopping categories.

Credit Cards Offer Additional Protections

It can be helpful to know that some credit card providers include certain protections that may help when unpredictable circumstances arise. It’s important to read your card’s terms and conditions so that you can be clear on what, exactly, is included along with potential exclusions. Benefits will vary from card to card but may include:

• Worldwide assistance:A hotline that provides travel-related information as well as help if you encounter problems far from home, including medical emergency referrals and support if you lose your passport.
• Protection for purchases: Some cards provide extended warranties and/or protection against damage or theft for a limited period, including refunds under some conditions.
• Car rental insurance benefit: You may be covered for vehicle damage or theft under certain conditions when you pay for a car rental using the credit card and decline the rental company’s collision damage waiver.                   

For many senior citizens, retirement presents terrific opportunities for travel. There’s more time to plan and enjoy extended trips without the constraints of a 9-to-5 working schedule. If travel appeals to you, a travel credit card may offer useful perks. With a travel rewards credit card, you generally earn points for all spending but get the highest ratio of points per dollar for travel-related purchases, like flights and hotel stays.¹ You can then redeem those points toward future travel expenses including flights and hotels. Broadly speaking, there are several kinds of travel rewards credit cards

• Airline credit cards: are co-branded by a credit card company and an airline, and generally offer the highest level of rewards when you travel with that airline, or in some cases with partner airlines.
• Hotel credit cards: are provided by a credit card company in partnership with a hotel chain, and you’ll generally get the most benefits when you use them for stays at properties owned by that chain.
• General purpose travel credit cards: give you the flexibility to earn and redeem points with multiple airline and hotel companies.

Some travel credit cards also include benefits that can help make travel less stressful. Depending on the card, those benefits may include:

• Airport lounge access: For 20-somethings, hunting for a seat in a crowded airport may be part of the fun of travel, but some seniors may prefer a more relaxing experience. Some travel credit cards provide complimentary or discounted access to a worldwide network of airport lounges, which can provide a welcome respite from airport hubbub – often with food, drink, and Wi-Fi on tap.
• Faster security screening: Some credit cards provide credits toward programs that help get you through airport screening and customs faster, so you spend less time standing in line.
• No foreign transaction fees: Some credit card providers eliminate foreign transaction fees, so you don’t need to worry about the extra cost that might otherwise be added to each purchase in a foreign currency.
• Hotel elite status and upgrades: Certain credit cards may include elite status when you enroll in hotel loyalty programs, with potential benefits such as room upgrades.
• Trip cancellation and baggage insurance: If you pay for your trip with your credit card, you may be reimbursed up to preset limits if your trip is cancelled or delayed or if your baggage is lost, stolen, or damaged.