Anyone who has long since left their working day and has reached retirement age quickly realizes that life as a retiree can be quite nice, but that the money in the back and the front is not enough. A look at the pension notice and the scarce pension increases promise nothing good. The pension is and remains clearly too low after deduction of taxes and health insurance.
Anyone who still wants to realize dreams and maybe even deferred consumer wishes, will need a loan for pensioners over 70 years urgently. The disillusionment follows on the heels when retirees find it is not that easy to get a loan for retirees over 70. Many banks are rejecting and others are demanding a younger guarantor, even though it only lends 5,000 USD or even less.
Why credit for retirees over 70 is hard to come by
Retirees have a secure income with their monthly pension that no one can take from them. Pensioners have enough life experience and usually have a very high payment history. So theoretically you are the perfect and ideal borrower with no significant risk. If it was not her age. Credit for retirees over 70 is so difficult because banks have only the biological risk of retirees in the calculus.
What is a biological risk
The biological risk is the risk of death. It actually exists and with increasing age, it also increases, without those affected can do something about it. The older pensioners get, the higher their biological risk automatically. Banks shy away from this risk and therefore reluctant to lend to retirees, or not at all. If they do, they secure themselves accordingly, in which they demand real guarantees or a solvent younger guarantee.
Credit for pensioners over 70 with guarantee
It is relatively easy to get a loan, if retirees from the outset together with a younger guarantee. But not every retiree has a young woman by his side. That is why the children or grandchildren are usually in demand when it comes to taking over the guarantee. Many older people are extremely embarrassed about bothering their children or grandchildren with their financial affairs. If you do not want to ask anyone in the family, you also have other alternatives.
The success of portals offering credit privately is steadily rising. For these portals, it is not a bank that lends the loan. They are private individuals who lend money in exchange for interest in order to earn more than daily or fixed income. Individuals decide differently. They are more emotional and make decisions from the gut. This, in turn, benefits pensioners. Individuals know the experience and the reliability of the older generation to assess correctly. Because of this, they are much more willing to lend their money to retirees, because they can be very sure that they will get it back. Also for the death case is taken care of. The heirs are responsible for the liabilities, so that the biological risk can be neglected.
Conclusion on the loan for pensioners of advanced age
- Credit with more recent bank guarantee is possible
- Personal loans are an alternative
For which variant retirees ultimately decide depends on personal sensitivities. If you do not want to burden your children with their financial affairs, you can obtain anonymous credit privately on the Internet. On the other hand, whoever knows that the family would like nothing better than to take on a guarantee can apply for the loan in the traditional way at the bank with a guarantor in the background.