Why Might Seniors Want a Credit Card?

When you need to pay for something, you often have your choice of methods, and credit cards may be a good option in certain circumstances, including the following.

Unexpected Emergencies

Large expenses can happen when you least expect them. For example, your car or a major appliance may break at any time, or you might suddenly need a medical procedure that’s only partially covered by your Medicare plan. In these situations, a credit card can provide a way for you to handle the emergency.

Shopping Online

Online shopping can be convenient, but it can also make you vulnerable. Sites can become compromised, opening the door to identity theft. When you shop with a credit card, you’re not liable for any unauthorized purchases made while you still have your card in your possession. With debit cards, you must report an unauthorized transaction within 60 days or you could be forced to pay for it. Credit cards can also make it easier to file disputes if an online merchant turns out to be a scam.

Traveling

When you present your debit card while renting a car or checking into a hotel, the business will usually put a hold on a debit card for more than the cost of the room or vehicle, preventing you from accessing some of the funds in your checking account. Credit cards eliminate this hassle, leaving you free to use your entire checking account balance. Seniors who travel frequently may also want to sign up for credit cards that provide travel points that can be redeemed for free airline tickets, hotel stays, rental cars and more.

Stretching Retirement Savings

Seniors with limited retirement savings may prefer to use credit cards with cash back or points that can be used on gas, groceries and other items. If you pay off the balance in full each month, you normally won’t be charged interest and can use the cash back or points to make your budget go further.

Likely Returns

If making a purchase you may want to return, a credit card could be a better option. With a credit card, you won’t need to actually pay for the purchase until you receive your statement the following month, giving you time to make a return and have the money credited back. With a debit card, you’re out the amount spent and will need to wait for the refund to process, which can take a few days.

Credit Cards to Consider

If you’re on the hunt for a new credit card, the following credit cards are some to consider.

AARP Essential Rewards Mastercard from Barclays

Designed specifically for seniors, the AARP Essential Rewards Mastercard from Barclays typically has no annual fee and often provides an introductory cashback offer. Cardholders earn points on all purchases, with extra points awarded for transactions at select gas stations, drugstores and medical providers.

Bank of America Customized Cash Rewards Card

With the Bank of America Customized Cash Rewards Card, seniors can choose how they want to earn points by designating a particular category like gas or groceries as a 3% reward tier. The card also usually has no annual fee, and some seniors may qualify for reduced introductory interest rates based on their credit score and history.

Chase Freedom Flex Card

The Chase Freedom Flex Card provides cash back on all purchases, with extra awards for dining out and buying things at drugstores. Seniors have the option to convert cash back to travel points if they wish, and the card usually carries no annual fee.

Capital One Venture Rewards Card

The Capital One Venture Rewards Card is a travel rewards credit card that awards travel miles for every dollar purchased. Often, the card gives seniors an introductory bonus mile package. The card does come with a $95 annual fee.

Costco Anywhere Visa Card by Citi

Seniors who are frequent shoppers at Costco stores in the Fort Collins, CO, area may like the Costco Anywhere Visa Card by Citi. The card awards points on all purchases with extra points for gas, travel, restaurant and Costco purchases. Once per year, cardholders can exchange the points for cash back or free merchandise at Costco stores. The card has no annual fee for Costco members.

American Express Blue Cash Everyday Card

The American Express Blue Cash Everyday Card allows cardholders to earn cash back on groceries, online retail purchases and gas. It carries no annual fee and also gives seniors access to discounts on streaming services and home-delivered meal prep kits.

Choosing the Right Credit Card

Remember that there's no such thing as a one-size-fits-all credit card. Which one may be right for you depends on your preferences, spending habits, credit history and financial goals. The above list isn't intended to be financial advice or an endorsement of any particular card. Rather, it’s an introduction to a few of the many credit cards available for seniors. Take the time to research cards yourself, comparing annual fees, interest rates and perks to make an informed decision about credit cards.

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