A Guide to Elder Planning: Everything You Need to Know to Protect Your Loved Ones and Yourself, Second Edition

2. Senior Citizens and Credit

Senior citizens deserve a lot of credit. Although a creditor may not generally consider your age when determining whether to grant a loan or credit, a creditor may consider whether you are close to retirement and whether you will soon be receiving less income. However, a bank is also required by law to consider any pension income, retirement account income, or Social Security benefits you may be receiving as income in determining your ability to repay a loan.

A bank or mortgage company may also consider age as it directly relates to certain elements of creditworthiness. So, for example, a bank or mortgage company may consider the likelihood that an 80-year-old person may not live to pay back the 30-year mortgage ...