Senior citizens difficulty to obtain credit
Senior citizens find it difficult to obtain credit at many banks. The bank points to this in a recent article. Admittedly, older consumers were massively courted by their purchasing power of advertising and trade. If consumption is to be financed with a loan, as is customary in Germany, many banks do not play along.
The prohibition of discrimination also applies to banks. Therefore, it would be inadmissible to reject a loan application only on the basis of the applicant’s age. The Federal Association of German Banks stresses that loans were never denied due to age. Rather, the bank is obliged to check every loan request to see whether the loan can be repaid as agreed.
Probability of default
One component of the probability of default (which is statistically measured in large parts) is therefore the mortality risk. This inevitably increases with age. Depending on the bank, it may therefore be that no credit is paid despite otherwise good conditions. However, according to the report in the bank.
The company, which specializes in senior citizens, assumes that not only the level of regular income, but also its nature is decisive for the credit opportunities. For example, at the age of 70, employees would have a good chance of getting a loan. Pensioners and pensioners, on the other hand, would only be able to obtain a loan without any problems if the salaries were high.
The “old hands” point out that even at the age of 50 years, problems and higher costs could threaten financial returns. For example, some banks would require higher interest rates and thus a risk premium, while others would insist on a higher repayment installment. More and more often, especially with real estate loans, attempts were made to take on the next generation.
Seniors do not fall on deaf ears at all banks.
Similar to other banking products, the requirements and conditions between banks on the market are fundamentally different. Many institutes have long since begun to consider the 60+ generation as a high-quality and reliable target group.
With a well-founded and qualified research, in which one or the other phone call may not be missing, seniors come therefore with a little patience on favorable and fair loans.