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How To Help Credit Cards For Seniors

August 31st 2012 07:32
It's not advisable to have a lot of debt when entering those "golden years," but there are some credit cards that you can take advantage of. In our search for the best credit cards for seniors we look for two things - fees and rewards.

Seniors Like Rewards

Credit card companies have become very creative in their marketing. You must really take time to review the offers and read the fine print. The big thing now is rewards. You can get points for air travel, some companies have a gift book which you can redeem points for, and others will send you a check for cash on your anniversary...it can get quite confusing.


Why Bother Having a Credit Card?

Many seniors work on a pay as you go system - this means "pay with cash." There are a couple of reasons to have a credit card:

- For the Rewards
- Credit Score

Lets look at the credit score first. Even if you pay cash for all your purchases a good credit score still has value. Your credit score has some bearing on car insurance premiums. If you needed an emergency loan your credit score will always be a factor. So, having a credit card and keeping it in good standing is an asset.

Rewards - in a minute we will talk about the reward programs, but why not take advantage of the rewards. Not only can you get back gifts and cash, but many credit card companies now have a detailed year end statement which is great for tax purposes. You can do away with all those cash receipts you get when you pay cash.

Taking Advantage of Rewards Programs

Reward programs are great, but don't think that credit card companies are doing this out of the goodness of their hearts - it's all about business. There are two things you need to look at if this program is to work for you - one are fees and the other is paying balances.


Why not charge purchases you normally pay cash for? We already talked about the accounting advantages and the rewards are a bonus, but it only works if you pay off the balance each month.

Fees - credit cards generally come with annual fees. You must evaluate the rewards versus the fees. Interest rates are not a factor if you pay off your balances monthly. Now, one thing to be aware of is - most companies will back date interest to the date of purchase if you don't pay off your balance each month...this can be costly. If you work this system right, which most people don't, then you can stay ahead with the rewards program.

Best Credit Cards for Seniors

Lets list a few credit cards that seniors can take advantage of:

1. Fidelity Retirement Reward - unlimited 2% cash deposited to broker account.
2. Pen Fed - 1% on purchases, 2% on supermarket purchases, 5% on gasoline purchases. Annual maximum is $50,000.00.
3. Blue Cash/American Express - 1.25% on purchases, 5% on gas and grocery purchases. These rates apply if you charge over $6500.00 annually.

Remember - compare the annual fees against your anticipated spending budget. You can charge food bills, gasoline, entertainment, and in some cases your utility bills. Just make sure you will get the reward credits for the charges you will be making...seniors can do well if they stick to the rules.
Authorís Bio:

John Harris is a proficient author on credit cards and related topics. His articles have catered to the use of many readers. He suggests a visit to Bestcreditcards.net for further information.

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