Thursday, December 16, 2010

Credit card for those above 60

Why do banks refused to issue credit card for those above age 60?  I guess it must be a mindless ruling from MAS - designed by young officers who live in their ivory towers. SGEP


Parka said...

I don't have the answer but it's not too hard to guess.

Banks don't earn from these elderly, for whatever reasons. Simple as that.

'Show me how they are paid and I will show you how they behave.'

Vincent Sear said...

I think that it's the credit risk of death. Even if the old person has lots of assets, the probate process would be costly and time consuming for the banks to claim back their loans. However, there's the debit card. Old people can use it with similar function and convenience as any Visa or MasterCard, just that no loan is advanced, all expenses are charged directly and immediately to bank balance. In fact, I think even younger people should use that too. Why borrow to spend? That's a 101 against prudent budgeting.

look4kc said...

“A banker, it has been said jestingly, is a man who lends you an umbrella when the weather is good and takes it back when it rains”

Simple as that.

Now they even charge you for every top-up to your transit link card under the giro scheme.

yujuan said...

In Singapore, it's the elderly who have money to spend, the young are too bogged down with house, car and family expenses.
The credit card is mostly used as a convenient tool for travelling expenses. The mindset of MAS and the banks should keep up with the times. Japanese seniors set the best example for observation.

Vincent Sear said...

Frankly and bluntly but logically, would you lend money to an old man in a hurry? Loan, not gift. I see nothing wrong whether it's MAS or the banks themselves who impose age limits on credit cards and other types of loans.

For the convenience of elderlies, I've already mentioned that debit card versions of Visa and MasterCard are available. Why must insist on a credit card? It functions the same way providing the same conconvenience internationally. The only difference is that it's linked to your bank account for direct debiting instead of monthly billing and rollover with interest if bill not paid in full by due.

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