credit history often affects the ability to obtain credit.
As well, Seniors often face massive life changes that can affect their ability to acquire credit. Those facing retirement may see their income drop substantially, and those Seniors who have lost a spouse may find themselves in a different income group altogether. Creditors may want to close joint credit accounts that were previously in both spouses names, or have the living spouse reapply using their sole financial history. These and other profound life changes can have a significant impact on a Senior's ability to get credit.
The Equal Credit Opportunity Act specifically states that it is unlawful for any creditor to deny credit or terminate credit based solely on age. As well, those over 62 cannot be denied credit only because they are ineligible for insurance on that credit. At the same time as these protections exist to protect Seniors, age can affect the ability to obtain credit for other reasons. These include:
1) other factors affecting creditworthiness, such as proximity to retirement
2) income
3) types of credit being applied for, for example an 80 year old may have difficulty obtaining a 25 year mortgage
4) creditors are able to favor applicants over 62 years of age
Why Seniors May Encounter Difficulty Obtaining Credit
Times have changed. In the past many decades, credit has become a financial tool very different than it was in the past. Many older adults today have paid cash for most of the things they have acquired in their lives. Many decades ago, loans were more likely to come from family members or friends than from financial institutions. The result of this is that many Seniors do not have a lengthy or strong credit history, if they have one at all. Lack of a
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