For a long time seniors had comparatively bad cards with the banks, if they wanted to take up a loan. Meanwhile, many banks have eased lending to pensioners.
In addition, you can actively contribute to making the bank appreciate you as a customer.
Finally pensioners! After leaving the professional life, many seniors want to treat themselves to something special. A longer journey or the long-awaited dream car – after all, in the future you will finally have time to travel a lot. You may also want to make yourself comfortable at home, now that you are away from spending most of your time at work and indulging in a new décor. While retirees typically have a steady, steady income, spending more on one hit can still be problematic. The average citizen often uses installment credit in such situations, while senior citizens often think they would not get a loan because of their advanced age.
In fact, seniors used to often have difficulty getting a loan. Too big was the fear of the banks that the loan would not be fully repaid. However, this attitude has changed in recent years. After all, the payment behavior of seniors is considered exemplary. In addition, unlike younger borrowers, there is no risk of job loss. In addition, we German meanwhile live much longer and pensioners pay their loans back usually reliable. For some banks, however, there is an age limit, usually 75 or 80 years, before reaching which a loan must be fully repaid. Before making a loan application, you should inform yourself and choose the loan amount and term so that you do not exceed this limit.
Of course, it is understandable that banks are more concerned with older borrowers about the potential default risk. You may be able to dispel these concerns by taking out a residual debt insurance. In general, the more collateral you can offer the bank, the more benevolent it will be to meet your loan request. After all, the risk to the money house is manageable. Your own property or life insurance significantly increases the chances of getting a loan and may even provide you with better conditions. So be sure to point out the value of your collateral. But even if you do not own either of them, you have the opportunity to convince the bank of you as an attractive client – for example by offering a guarantee from your children. In no case should you let yourself be confused. Even if you are unsuccessful on the first try, point out your preferences as a borrower and ask questions from multiple banks. The criteria by which a credit decision is made often differ between the individual financial institutions. In the opinion of the Office against Age Discrimination, banks today are generally much more responsive to credit requests from older customers than a few years ago.