Too Old For a Credit Card?
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Some time ago we received an email from a disgruntled customer who had applied for a credit card and been rejected. The customer, although a retiree, professed to be financially comfortable with a freelance income and more than ready to meet her obligations (if any) to the bank.

However, she was contacted by the bank and told that her application could not be entertained as she had no EPF statements as proof of income.

Disappointed, the customer dropped us a note and it made us ask a question we never had before: Could a person be too old for a credit card in Malaysia?

Too Old For a Credit Card?

The Customer’s Story

Y contacted us via email and shared her story with us. With her permission, the story went something like this…

Wanted to apply for X card, mainly because the card I have had it’s benefits downgraded. Thinking it will be good to get another card (what’s more with a free Huawei), I applied for card X.

But the bank does not seem to entertain retirees. Someone from the bank called and after a brief conversation, asked me to try other banks as I do not have EPF statements to support my application. What about payslips, bank accounts, etc? Apparently, not enough.

Frankly, I am a wee bit humiliated. Can’t the bank be more flexible on proof of income when it comes to retirees?

Sending Out Feelers

To try the theory on for size, we had some retirees apply for a credit card with the bank involved in this customer’s story as well as about 2 others. What we found from the three banks were unanimous: no EPF statement = no credit card.

Admittedly, we did not try every bank but in a bid to understand why such a situation would exist; we analysed the general reasons for rejection of a credit card application that we gleaned from our sources.

With an entire article devoted to the bank’s determination of risk, proof of income does play a huge part in the deciding of credit approvals in this country.

A Possible Rationale

Before a bank can decide to offer you a loan or not; they would first need to assess the level of risk involved in lending to you. Based on this assessment that is probably similar across the board; the inability to sufficiently prove a stable income will weigh heavily against you.

As mentioned in the article discussing customer risk above; the ‘formula’ or criteria is likely already set with no discrimination as to the differences of circumstances amongst the customer base.

In short, retirees are unfortunately excluded over the lack of some income documents because of the set system of risk analysis and not from an age discrimination standpoint. A report in the Telegraph UK regarding a similar case featured a comment from a bank representative that confirms this rationale:

“While anyone can apply for a credit card, not everyone is entitled to receive one. Unfortunately, many of the more attractive credit cards do have minimum salary requirements, which could exclude some older people.”

However, as feminists have since time immemorial argued: a situation that indirectly discriminates against a particular demographic is discriminatory even if the initial intention was not to be so.

What Can Be Done?

Whether or not banks have intentionally decided to discriminate against senior applicants is a moot point if the outcome of the selection process has inevitably led to such a conclusion.

This exclusion isn’t just causing financially competent retirees some heartache; it’s also costing the bank in the untapped potential of the possibly affluent retiree segment.

Just as other products, such as health insurance, has done; would it not be possible to tailor-make a credit card for a retiree? Perhaps the criteria for approval can be tweaked along with the mechanics of the card in order to not only provide the bank with the assurance they need but also prevent the exclusion of any market segment.

At the end of the day, dear Malaysian banks – there are some retirees like Y above who would like to hold credit cards and have the means to repay: now is that not a market worth tapping?


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Jonah Teh
3 years ago

Some retirees from the government sector have fixed regular monthly pentions, some as high as ten of thousands, until the very end of their lives. Don’t you think this regular monthly pensions can constitute as regular incomes! Many want credit cards not really for urgency or contingency purposes, but simply because of certain advantages and convenience accrued only to credit cards which even debit cards do not have.

Zyda Azyan
2 years ago

It is true. I wanted to change my credit card that I observed had no advantage, to a different cc from anothet bank. Once the application was sent, the bank called and straight away told me that it cannot be processed as I am a retiree. I am a Govt retiree and have no EPF statement, even whrn I was working. I do have enough finances to cover monthly credit payments. So sad for this. We are stuck with the ols credit card and could not have better alternative.

1 year ago

I am 70 years old and gainfully employed. Largest shareholder of an unlisted public company. Did not have credit card due to Insolvency Department problems. Now resolved and need a card as I travel both local and overseas often

1 year ago

Banks sucks at times.
However a good friend who was a bank manager offered me a solution as a senior citizen to help in the card application.
Place a fived deposit of rm10k minimum and get a back to back guarantee for a credit card approval supported by the branch manager.
It takes a bit of work but its worth it if you are after a credit card.

Lai Chin Fook
6 months ago

Today is 2022 and I have just been rejected for a new credit card. No explanations, I tried to fill in the form and the bank responded that they only entertain below 65s

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