Getting Credit When You’re Over 62

Credit is an important money management tool 

for both young and older consumers. Yet the 

elderly, particularly older women, may 

fi nd it diffi cult to get credit.

If you’re an older consumer who 

has paid with cash all your life, you 

may fi nd it diffi cult to open a credit 

account. Th at’s because you have “no 

credit history” of how you paid on 

credit. If your income has decreased, 

you may fi nd it harder to get a 

loan because you have “insuffi cient 

income.” Or, if your spouse dies, you may fi nd 

creditors trying to close joint accounts. A “joint 

account” is one for which both spouses applied and 

signed the credit agreement.

Under the federal Equal Credit Opportunity Act 

(ECOA), it’s against the law for a creditor to deny 

you credit or terminate existing credit simply because 

of your age. Th is brochure explains your rights and 

off ers tips for applying for and maintaining credit.

Applying for Credit

Applying for credit used to mean asking your 

neighborhood banker for a loan. Now, with national 

credit cards and computerized applications, the 

day of personal evaluations may be over. Instead, 

computer evaluations look at, among other things, 

your income, payment history, credit card accounts, 

and any outstanding balances. Paying in cash and in 

full may be sound fi nancial advice, but they won’t 

give you a payment history that helps 

you get credit.

A major indicator of your ability 

to repay a loan is your current income. 

Th ose who consider income must 

include types of income that are likely 

to be received by older consumers. 

Th is includes salaries from part-time 

employment, Social Security, pensions, 

and other retirement benefi ts.

You also may want to tell creditors about assets 

or other sources of income, such as your home, 

additional real estate, savings and checking accounts, 

money market funds, certifi cates of deposit, and 

stocks and bonds.

If you’re age 62 or over, you have certain other 

protections. You can’t be denied credit because 

credit-related insurance is not available based on 

your age. Credit insurance pays off the creditor if 

you should die or become disabled.

On the other hand, a creditor can consider your 

age to:

 favor applicants who are age 62 or older. 

 determine other elements of creditworthiness. 

For example, a creditor could consider whether 

you’re close to retirement age and a lower 

income.

April 2006

FTC Facts

For Consumers Federal Trade Commission

For The Consumer

www.ftc.gov 1-877-ftc-help
 While a creditor cannot take your age directly 

into account, a creditor may consider age as it 

relates to certain elements of creditworthiness. If, for 

example, at the age of 70, you apply for a 30-year 

mortgage, a lender might be concerned that you may 

not live to repay the loan. However, if you apply for 

a shorter loan term, increase your down payment, or 

do both, you might satisfy the creditor’s concerns. 

Checking Your Credit 

History

A credit report includes information on where 

you live, how you pay your bills, and whether 

you’ve been sued, arrested, or filed for bankruptcy. 

Nationwide consumer reporting companies sell the 

information in your report to 

creditors, insurers, employers, 

and other businesses that use 

it to evaluate your applications 

for credit, insurance, 

employment, or renting a 

home. 

You may find that your 

file doesn’t list all of your 

credit accounts. That’s because 

not all creditors report to consumer reporting 

companies. You may ask that additional accounts be 

reported to your file. Some bureaus may charge for 

this service.

Credit information about shared accounts should 

be reported in your name and your spouse’s. If it’s 

not, ask the creditor in writing to report the account 

in both names.

The Fair Credit Reporting Act (FCRA) requires 

each of the major nationwide consumer reporting 

companies to provide you with a free copy of your 

credit report, at your request, once every 12 months. 

To order your free annual report from one or all 

the national consumer reporting companies, visit: 

www.annualcreditreport.com; call toll-free: 1-877-

322-8228; or complete the Annual Credit Report 

Request Form and mail it to: Annual Credit Report 

Request Service, P.O. Box 105281, Atlanta, GA 

30348-5281. You can print the form from 

ftc.gov/credit. Do not contact the three nationwide 

consumer reporting companies individually; they 

provide free annual credit reports only through 

www.annualcreditreport.com, 1-877-322-8228, and 

Annual Credit Report Request Service, P.O. Box 

105281, Atlanta, GA 30348-5281. 

Other Rights to Free Reports

Under federal law, you’re also entitled to a free report 

if a company takes adverse action against you, such 

as denying your application 

for credit, insurance or 

employment, and you request 

your report within 60 days of 

receiving notice of the action. 

The notice will give you the 

name, address, and phone 

number of the consumer 

reporting company that 

supplied the information 

about you. You’re also entitled to one free report 

a year if you’re unemployed and plan to look for a 

job within 60 days; if you’re on welfare; or if your 

report is inaccurate because of fraud. Otherwise, a 

consumer reporting company may charge you up to 

$9.50 for additional copies of your report.

To buy a copy of your report, contact:

 Equifax: 1-800-685-1111; www.equifax.com

 Experian: 1-888-EXPERIAN (1-888-397-3742); 

www.experian.com 

 TransUnion: 1-800-916-8800; 

www.transunion.com

 Under state law, consumers in Colorado, 

Georgia, Maine, Maryland, Massachusetts, New 

While a creditor cannot take 

your age directly into account, 

a creditor may consider age as 

it relates to certain elements of 

creditworthiness.

2 FTC Facts For Consumers
Jersey, and Vermont already have free access to their 

credit reports.

If you ask, only the last four digits of your Social 

Security number will appear on your credit reports.

Establishing a Credit 

History

If you’re denied a loan or credit card because you 

have no credit history, consider establishing one. The 

best way is to apply for a small line of credit from 

your bank or a credit card from 

a local department store. Make 

sure you list your best financial 

references. Make payments 

regularly and make certain the 

creditor reports your credit 

history to a credit bureau.

If Your Spouse Dies

Under the ECOA, a creditor cannot automatically 

close or change the terms of a joint account solely 

because of the death of your spouse. A creditor may 

ask you to update your application or reapply. This 

can happen if the account was originally based on all 

or part of your spouse’s income and if the creditor 

has reason to believe your income alone cannot 

support the credit line.

After you submit a re-application, the creditor 

will determine whether to continue to extend 

you credit or change your credit limits. Your 

creditor must respond in writing within 30 days 

of receiving your application. During that time, 

you can continue to use your account with no new 

restrictions. If you’re application is rejected, you 

must be given specific reasons, or told of your right 

to get this information.

These protections also apply when you retire, 

reach age 62 or older, or change your name or 

marital status.

Kinds of Accounts

It’s important to know what kind of credit accounts 

you have, especially if your spouse dies. There are 

two types of accounts — individual and joint. You 

can permit authorized persons to use either type.

 An individual account is opened in one person’s 

name and is based only on that person’s income 

and assets. 

If you’re concerned about your credit status if 

your spouse should die, you may want to try to 

open one or more individual 

accounts in your name. That 

way, your credit status won’t be 

affected.

When you’re applying 

for individual credit, ask the 

creditor to consider the credit 

history of accounts reported 

in your spouse’s or former spouse’s name, as well 

as those reported in your name. The creditor must 

consider this information if you can prove it reflects 

positively and accurately on your ability to manage 

credit. For example, you may be able to show 

through canceled checks that you made payments on 

an account, even though it’s listed in your spouse’s 

name only.

 A joint account is opened in two people’s names, 

often a husband and wife, and is based on the 

income and assets of both or either person. Both 

people are responsible for the debt. 

Account “Users”

If you open an individual account, you may 

authorize another person to use it. If you name your 

spouse as the authorized user, a creditor who reports 

the credit history to a credit bureau must report it in 

your spouse’s name as well as in yours (if the account 

was opened after June 1, 1977). A creditor also may 

If you’re denied a loan or 

credit card because you have 

no credit history, consider 

establishing one. 

FTC Facts For Consumers 3
report the credit history in the name of any other 

authorized user.

If You’re Denied Credit

The ECOA does not guarantee you’ll get credit. But 

if you’re denied credit, you have the right to know 

why. There may be an error or the computer system 

may not have evaluated all relevant information. In 

that case, you can ask the creditor to reconsider your 

application. 

If you believe you’ve been discriminated against, 

you may want to write to the federal agency that 

regulates that particular creditor. Your complaint 

letter should state the facts. Send it, along with 

copies (NOT originals) of supporting documents. 

You also may want to contact an attorney. You have 

the right to sue a creditor who violates the ECOA. 

National Banks

Comptroller of the Currency

Customer Assistance Group

1301 McKinney Street, Suite 3710

Houston, TX 77010

State Member Banks of the Reserve System

Federal Reserve Board

Division of Consumer and Community Affairs

Mail Stop 801

Washington, D.C. 20551

Federal Credit Unions

National Credit Union Administration

1775 Duke Street

Alexandria, VA 22314

Non-Member Federally Insured Banks

Federal Deposit Insurance Corporation

Office of Consumer Programs

550 Seventeenth St., N.W.

Washington, D.C. 20429

Federally Insured Savings and Loans, and Federally 

Chartered State Banks

Office of Thrift Supervision

Consumer Affairs Program

1700 G St., N.W.

Washington, D.C. 20552

Other Creditors

(includes retail, gasoline, finance, and mortgage 

companies)

Federal Trade Commission

Consumer Response Center

600 Pennsylvania Ave, N.W.

Washington, D.C. 20580

For More Information

The FTC works for the consumer to prevent 

fraudulent, deceptive, and unfair business practices 

in the marketplace and to provide information 

to help consumers spot, stop, and avoid them. 

To file a complaint or to get free information on 

consumer issues, visit ftc.gov or call toll-free, 1-

877-FTC-HELP (1-877-382-4357); TTY: 1-866-

653-4261. The FTC enters Internet, telemarketing, 

identity theft, and other fraud-related complaints 

into Consumer Sentinel, a secure, online database 

available to hundreds of civil and criminal law 

enforcement agencies in the U.S. and abroad. 

4 FTC Facts For Consumers

For The Consumer Federal Trade Commission

www.ftc.gov 1-877-ftc-help

Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education