Anyone who has been walking around on this globe for some time, knows that people used to be different about taking out a loan than now. Where in the past you only borrowed money when it really could not have been otherwise, it is nowadays the most normal thing in the world to borrow for what you cannot afford now. But do you also benefit as an older person? In other words, how easy (or difficult) is borrowing at a later age?
Why borrowing at a later age is different
Money is money, and therefore not age-related, right? Seen from that perspective, borrowing at a later age should be as easy or difficult as when you are 18, 20 or 34. However, practice shows otherwise. Borrowing at a later age can sometimes be very difficult, especially when it comes to large sums of money, such as a mortgage. But loosing a smaller sum of money from a lender can also be a sinecure.
Most lenders do not lend money to people over the age of 60, although some lenders are more flexible and the maximum age is shifting to 65 or even 74 years. If you succeed in taking out a loan, you will always have to repay the amount within 5 years, and sometimes even earlier.
If you already have a loan
If you already have a loan, that is a different story than if you still try to take out a loan. So you don’t have to worry: on your 60th birthday there is really no lender at the door who demands that you pay back your loan as soon as possible. Of course, the repayment of an existing loan will continue as usual, but that aside.
Would you like to take out a loan at a later age? This can often be done in other ways. Think about:
- A special senior credit;
- Utilizing the surplus value on your house;
- Borrow money from a private individual.