From a certain age, banks without collateral reject a loan application because the risk of death is then considered to be too high.
Credit possible from the age of 70?
Pensioners no longer have to adhere to working hours and can enjoy everyday life. Of course, as with everyone else, here come some wishes that should be fulfilled. So that the pensioner stays mobile, he may want to buy a new car or go on a trip. So that this can also be financed, many think about a loan for pensioners over 70.
But it is not that easy to apply for this loan. Many banks set a maximum age of 65 to apply for a loan. This is because pensioners aged 70 and over are considered risky people and will not be given a loan without collateral. But if you have collateral that the bank accepts, you will be successful in applying.
What security is required?
In order for a loan to be granted to pensioners aged 70 and over, collateral must be provided. One possibility is to provide a guarantor. This can be your own child, grandchild or a friend. It is important that the guarantor has a fixed income and can prove an unlimited employment contract. If you cannot find a surety, you can also use your life insurance.
Practice has shown that many pensioners have had life insurance for decades. This has a high surrender value after a long time, so it can certainly be used as security. In the event of a loan default, the bank can use the insurance to receive the money. If you want to buy a car, you can suggest to the bank that the vehicle registration document remains in the bank’s possession until the loan has been repaid.
As a pensioner, it is only possible to get a loan for pensioners over 70 if there is collateral. In most cases it is not a problem to convince the bank to grant a loan. The higher the loan, the better collateral must be available. When it comes to a small loan of 500 USD, banks often forego collateral. The repayment time is very short here and the bank assumes that the money will be repaid within a few months.