Your Retirement and Credit Card Choices

It’s no secret that many Americans are cashing in their retirement funds to stay afloat. While this is certainly a drastic decision, many find themselves with no other options. That raises the question: How many of us will be prepared at retirement age and how will our credit affect our quality of living? There are more than a few credit card offers that meet the needs of every stage of life and here, we explore what retirees should keep in mind when they’re shopping for the best credit card offer.

Changing Lifestyles

It might be a credit card with travel rewards was your best option in your thirties; you were likely taking family vacations and those reward points came in handy. These days, now that you’re looking at a slower pace, a trip to Disney World isn’t likely something you’ll plan. Maybe a cash back credit card will better suit your needs, or, if you’re planning on taking those overdue dream vacations to Paris, then certainly, a mileage rewards card is a strong consideration. And of course, those low APR rates are attractive, no matter our age. The take away is that you should choose a credit card that has perks and rewards that you’ll actually use.

Credit Scores Still Count

Credit scores will always be a major factor in whether an offer is extended or an application is approved. And, too, much of that will be determined by the same income factors as those who are still in their careers. The difference, of course, is that the income for retirees will come from their retirement savings. This is more the reason to ensure we’re prepared for retirement.

Another important consideration is to not apply for several credit cards. This will lower your credit score, albeit temporarily, and could very well affect the interest rate you’re offered.

Budget, Budget, Budget

It doesn’t matter if you’re 26 or 66, our financial well being is based solely on how well we budget our finances. The added challenge with retirees is that their income, for the most part, is fixed and will likely remain so. It’s important to carefully budget so that you can pay the balance in full each month or at least, pay more than the minimum payments. Keep in mind, too, that changing interest rates and balances will affect your monthly payments. One late payment can significantly alter your APR.

A Recommendation or Two

As mentioned earlier, there are many impressive credit card offers that fit well in a retiree’s lifestyle. One of those offers is the Chase Ink Bold with Ultimate Rewards. This will be especially attractive to those who are planning those cruises or European vacations. You’ll earn 25,000 bonus points after your very first purchase. That said, this is a traditional charge card, which means the balance must be paid in full each month. This also means there is no APR to tend to. You can apply for card on Chase Ink Bold with Ultimate Rewards card page.

Another suitable offer comes via Costco and American Express. The TrueEarnings card serves as an American Express and Costco Membership Card. It eliminates the annual Costco membership fee and you’ll enjoy cash back on everything you purchase. You can earn up to $3,000 cash back on gasoline purchases every year, 2% on your travel expenses and 1% on most everything else. Also, there’s no annual fee and you can take advantage of the low interest rates for balance transfers from a higher APR credit card. One word of caution: this American Express is available only to Costco members. Learn more about the terms and conditions at TrueEarnings Card from Costco and American Express page.

As you can see, just because you’re preparing for retirement doesn’t mean you become exempt from the best credit card offers out there. You’ve worked hard and saved all these years so that you could enjoy your retirement. The right credit card can help you as you plan for what’s sure to be the best years. Carefully reviewing the terms and conditions ensures you’re prepared to choose the best card for your needs at any stage of your life.

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