Elderly Australians Struggle to Access Credit Cards Amid Tightened Lending Standards

Elderly Australians are facing increasing difficulties in obtaining credit cards, even those with stable incomes, as banks tighten their lending criteria in the wake of the 2018 Banking Royal Commission. This issue has become more pressing as Australia continues its transition towards a cashless society, leaving many older adults struggling to keep up with the changes.

According to recent reports, the strict credit standards set by financial institutions are disproportionately affecting the elderly population. Many older Australians, such as Jacqui Bauer, have no credit history in their own names and are deemed 'high risk' by banks, making it challenging for them to secure credit cards. This problem is exacerbated by the phasing out of cash and cheques, which are commonly used by retirees.

Chris Grice, the CEO of National Seniors Australia (NSA), a non-profit advocacy group, has been discussing the risks and considerations surrounding this issue. In an interview with ABC's Steve Austin , Grice explained that the well-intentioned reforms following the banking royal commission have had the unintended consequence of making it harder for older Australians to prove their creditworthiness.

Why this matters: The lack of access to credit cards and digital payment methods is disproportionately affecting vulnerable and older populations who may not have the capacity to keep up with these changes. As Australia moves towards a more cashless society, it is vital to ensure that no one is left behind and that all citizens have access to the necessary financial tools.

NSA continues to advocate for change on behalf of its members and the broader elderly population in Australia. Experts have called for greater flexibility and consideration from financial institutions when assessing credit applications from older Australians, to ensure they can maintain financial independence and access the necessary financial tools.

Grice emphasized that as Australia progresses towards a cashless society, it is crucial to address the challenges faced by the elderly population. "The lack of access to credit cards and digital payment methods is leaving many older Australians behind," he said. NSA remains committed to working with banks and policymakers to find solutions that will enable all Australians, regardless of age, to participate fully in the modern financial landscape.

Key Takeaways

• Elderly Australians face difficulties obtaining credit cards due to tightened lending criteria.
• Lack of credit history deems many older adults 'high risk' by banks, limiting access.
• Transition to cashless society exacerbates the problem for retirees relying on cash/cheques.
• Advocacy groups call for more flexibility from banks in assessing older Australians' creditworthiness.
• Ensuring financial inclusion for the elderly is crucial as Australia moves towards a cashless future.