Navigating credit card options for seniors: Bank ties, FDs and more

Here's everything you need to know about the secured and unsecured credit card options for senior citizens

- Shipra Singh

Most major banks have a cut-off age of 60 for credit cards, with a few allowing those up to 70 years to apply for one. This prevents seniors from getting credit cards even if they fulfill the income and credit score criteria. However, there are workarounds.

A credit card against a fixed deposit (FD) is a sure-shot. Sumanta Mandal, founder, Technofino, an online platform that helps consumers compare and choose credit cards, said: "One option is to get a 'secured' card that is only issued against an FD. However, many senior citizens don't know that other credit cards, along with income criteria, also have pledging an FD as an eligibility criteria, which they can use. For instance, you can get an HDFC Infinia card if your monthly income is ₹5 lakh or by pledging a minimum of ₹10 lakh FD as lien."

Apart from the guaranteed options, there's another way-use long-standing relationship with your bank. Read on to find out more.

Cards against FDs

The structure of credit card issued against an FD is simple-you typically get 70-80% of the amount parked in an FD as credit limit and the card is valid so long as you pay bills on time. However, if you default on payments, the bank breaks the FD, recovers the outstanding amount, and returns the remaining amount after closing the credit card.