When you have already retired, it might be difficult for you to obtain a loan. You do not have a stable source of income anymore. If you need money to pay for emergency expenses or you wish to help your family member who is in dire need of cash, there are loan options that might work for you. Study each possibility before finalising your decision.
Fixed-rate personal loans
With this type of loan, you need to pay a fixed amount each month until you complete the repayment of the loan. For this option, there is no need to secure the loan against a property. Hence, it is the most popular loan for retirees.
Credit cards
Banks are still willing to release credit cards to seniors. Find the right credit card that is suitable for your needs. For instance, if you want to borrow a considerable amount, you need to check the interest rate first. If you want to use the credit card for purchases, you might find a credit card company with a 0% interest rate during the promotional period. Banks will offer credit cards depending on the size and duration of the loan. Read the crucial details first before you sign an agreement to avoid credit card problems later.
Equity release
It is possible for you to find over 55 equity release schemes. Some other loans are available for seniors 60 years old and above. The way this loan works is quite simple. You borrow money against your property, but you do not have to leave it. You can stay in the same property until you die. When you are no longer residing there, the creditor will have the right to sell the property. From the amount collected after its sale, the creditor will deduct the principal amount you borrowed plus the interest due. The remaining amount (if any) will go to your loved ones whom you listed in the document that you signed. It is a good deal since you can obtain cash that you currently need without the need to leave your residence. The loan intends to help seniors. Hence, it is not tricky obtaining one.
Car finance
When you want to purchase a new car, but you are already a retiree, it is okay. You can still get a car finance loan. As long as you have an excellent credit rating and you show proof that you can meet the monthly repayments, it is okay. You might also need to show your driving license and other proof of income.
Credit union
There are local organisations that provide unsecured loans to seniors like you. Their goal is not necessarily to make huge income, but to help retirees who need cash. You can ask around if there are credit unions in your area where you can borrow money. Each union might have different sets of rules though.
Do not feel bad that it is becoming more difficult for older people to obtain a loan. If you keep researching the available choices, you might find one soon.