Credit Cards for Senior Citizens
6 Min Read | Last updated: August 28, 2023
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Get the most out of your retirement with a credit card that meets your needs. Explore cash back and travel rewards options that make spending more rewarding.
At-A-Glance
- For senior citizens, rewards credit cards may help with a variety of goals and everyday activities, from international travel to grocery shopping.
- If travel is a retirement goal, travel rewards credit cards provide points toward flights and hotels, along with perks that can make travel more relaxing.
- Cash back cards can help a fixed income stretch further by providing money back on everyday spending.
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.
Travel Credit Cards
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.
Within each of these card types, there are different “tiers” of credit cards. Top-level premium cards offer the highest rewards, including the most points per dollar in targeted spending categories. But they may have higher annual fees as well.
If, as a senior citizen, you have the flexibility to travel off-peak, you may benefit from a change in the way certain airlines and hotels are pricing their reward travel. Instead of requiring a fixed number of points for a flight or hotel stay, some companies are using “dynamic pricing.” That means the number of points needed varies depending on the price that you’d pay in dollars, which in turn depends on how much demand there is for that particular seat. If you’re able to travel when demand is low, you may need fewer points for your flight or hotel stay.
Credit Card Benefits That Can Reduce Travel Stress
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.
Earning Cash Back With Credit Cards
Cash back credit cards may be useful for those whose priorities include making their money go further for everyday purchases, since they tend to reward spending in categories such as supermarkets and restaurants. As you spend with a cash back credit card, you get a percentage of the cash back, usually as a statement credit. Some credit cards also offer cash back welcome offers if you meet certain spending requirements within the first few months of getting the card.
With cash back cards, you’ll generally get at least 1% cash back on all purchases, with higher percentages for specific spending categories such as supermarkets, restaurants, and U.S. gas stations, however, this varies from card to card.2
Credit Cards With No Annual Fee or 0% Introductory Annual Percentage Rate (APR)
If you’re focused on minimizing fees and interest, you may consider a 0% introductory APR credit card or a no annual fee credit card. Some credit card companies charge an annual fee for the privilege of using their card, so a card with no annual fee could be a good option for seniors who are looking to save money. Some cards offer both 0% introductory APR as well as no annual fee, the best of both worlds. Be sure to familiarize yourself with the product’s terms and conditions when comparing available credit card options.
FAQs on What Are the Best Credit Cards for Senior Citizens?
What are the best credit cards for seniors?
The best credit card for seniors depends on an individual’s lifestyle, credit status, and financial needs. Avid travelers may want to consider a travel rewards card. A cash back rewards card may be a good choice for individuals who would like to save on everyday expenses.
What factors should senior citizens consider when choosing a credit card?
Among the most important factors to consider are the rewards and benefits of the credit card, the interest rates, the annual fee, and the customer service experience. Additionally, it’s a good idea to look for credit cards that offer fraud protection as well.
Is it hard to get a credit card when you’re retired?
You can still apply for credit cards after you’ve retired, even if you no longer have traditional employment. Social Security benefits, withdrawals from a retirement account, part-time work, and more all count as income. Credit card companies will also assess your credit history, your ability to pay, and other factors when considering your application.
The Takeaway
Senior citizens may find rewards and cash back credit cards to be useful tools for helping to achieve a range of retirement goals, from travel to simply making the most of a fixed income. A wide variety of credit cards offer different benefits, so think carefully about your goals and spending habits when choosing cards to meet your needs.
Mike Faden has covered business and technology issues for more than 30 years as a writer, consultant, and analyst for media brands, market-research firms, startups, and established corporations.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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The material made available for you on this website, Credit Intel, is for informational purposes only and intended for U.S. residents and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.
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