Age factored into credit scoring?

izools

Just wondering what impact Age has on credit scoring.

Been working hard over the last year to get mother's credit file cleaned up.

She now has no defaults whatsoever, and no missed payments whatsoever, anywhere on her credit file.

It's a picture, bar four new accounts (Creation Card, Orange Mobile, British Gas Electricity & Gas) and the associated searches.

She's reduced the limits on many of her older credit cards and closed two, when this updates she will have reduced her total credit limits from over £21,000 to under £10,000.

She owes around £8,000 on credit cards and would like to transfer the remaining balance of £6,000 (£2,000 is on her new Creation card 0% 15 months) once the searches drop off and new accounts get a bit older - around January - but she will be 60 years old.

Is this likely to be an issue? I know credit card companies can be (rightly so) weary of very young borrowers, I was wondering if the same applies to those nearing retirement age?

PNPSUKNET

depends on the lender, they may see her as only having 5 years until retirement etc

Curt.

The scoring itself, no. Its like the age requirements issue, you have to meet it with certain minimum ages but to be the safe side (on grounds of age discrimination) age is never officially factored into scoring.

However lenders themselves, can be nosy of their own "further checks" which they have a right to do and sometimes excercise. Some, like MBNA are notorious for it - they ask numerous questions and will see if that age would lead to potential pension income years down the line and factor it in. The age itself wont matter if the income is good, as in most countries you are not obligated to notify a lender of changes based on income, employment etc. Once you have been approved the onus and burden is upon you to meet the ability to repay and stick with the limits etc.

So if the income itself is low and you are heading closer to retirment age combined with a likely "low" pension credit/payment they may well say no...i think more than likely in your mom's case, if she is a homeowner it will more than likely be approved as they have some collateral/evidence of assets.

On a more personal note though, good on you for helping your mom and keep it up, hopefully you will get a good deal approved and things will look rosy in the future Izools.

Tr@cker

Ive been turned down twice recently for cards for the first time ever. I had several cards and a loan but payed all these off when i took early redundancy from my job with a lump sum and pension.

I never had any late payments on anything so i cant understand it really. My income has halved- i now get a £12,000 RPI-linked pension but with no debts now i could comfortably make the monthly payments.

The two cards i have have a 2k limit each and no balance, i was just looking for a new card to use for an interest free purchase period.

I expect they are tightening up generally after years of easy credit but it seems to me they are getting a bit too tight with good customers.