New Delhi. Senior citizens in India are now becoming more digitally and financially active than before. Today, a large number of elderly people are using credit cards for everything from travel booking to purchasing medicines. But while credit cards provide convenience, choosing the wrong card can increase expenses, increase security risks and spoil the budget. Therefore, it is very important to choose the right credit card.
Here we are telling you those 6 important factors which every senior citizen should keep in mind before applying for any credit card.
1. Special attention to low annual charges and hidden charges
The first and most important factor for senior citizens is to choose a card with low annual charge. Many banks now offer cards with very little or no annual fee. Some card companies also waive the annual fee if a certain annual expenditure is met. Additionally, credit cards often have hidden charges such as cash withdrawal fees, statement copy fees or card replacement charges. These small expenses can add up to a big bill. Therefore, it is important to know about all the charges before taking the card.
2. Low Interest Rates (APR)
Senior citizens should choose such cards which have low APR i.e. interest rate. If sometimes the outstanding amount has to be carried forward, the financial burden is reduced due to the low interest rate. Even though the Reserve Bank of India (RBI) has increased transparency in interest rates, interest rates vary greatly from bank to bank. Therefore, it is beneficial to compare the rates of different banks before applying for the card.
3. Strong fraud protection and secure digital features
Digital fraud is the biggest concern for senior citizens today. In such a situation, while choosing a credit card, security features should be kept on top. A good card is one which has –
- Zero liability protection. Under this, the cardholder gets protection in case of fraud.
- Fast and clean dispute resolution process
- Real-time SMS and app notifications on every transaction
- Facility to block or unblock the card instantly
OTP based secure transaction
4. Easy mobile app and strong customer support
Mobile banking has now become very important, but many senior citizens get troubled due to difficult apps or complex features. So choose a card whose mobile app is simple, clean and easy to use.
There should be an app which-
- Get payment reminder
- Option to clear minimum due should be clearly visible
- Transaction history can be easily seen
- It should not be difficult to turn the card on/off
- Also 24×7 customer support
5. Rewards and benefits as per lifestyle
The lifestyle of every senior citizen is different. Some travel a lot, some spend mostly on household needs. Therefore, choose a reward program that is beneficial as per your lifestyle.
The most important and practical rewards are-
- Cashback on grocery, medicine and electricity-water bills
- Fuel surcharge waiver at petrol pump
- Airport lounge access (if you’re a frequent flyer)
- Avoid cards with complex point systems
6. EMI facility and flexible payment option
EMI helps a lot in expenses like sudden medical expenses or home repairs. Therefore, choose such cards which-
- EMI conversion at low interest
- Easy installment option on large purchases
- No penalty for timely payment
- This does not affect pension or monthly budget
understand the risks too
Along with convenience, credit cards also bring some risks, hence caution is necessary-
- Debt can increase rapidly if you spend more.
- Heavy interest is charged if the bill is not paid on time.
- Late payment spoils the credit score.
- Foreign transactions, late fees and other charges can prove costly.
- The risk of digital fraud, identity theft and unauthorized transactions remains
