Over 10 Years in Business Since 2001, Collective Point of Sale Solutions has been Canada’s Choice for payment processing services and secure point of sale solutions. We have served more than 11,000 businesses across Canada and processed more than $1 billion in debit and credit card transactions.
To find out more about us, check out our timeline of press releases to see how we've grown over the years.
Merchants who accept credit cards can help seniors develop credit scores
August 8, 2012 - 1:18pm
Typically, the plan to pay off all debts, mortgages and bills is a good one. However, in the modern economy, with its emphasis on credit worthiness, this tactic can actually sometimes prove to be a double-edged sword. In fact, one segment of the population is increasingly encountering the downside of this scenario.
Seniors who pay off loans and car and home payments are finding themselves unable to get a credit score, which they may need later, according to CreditCards.com. Despite a clean history of paying off debts, some of these retirees find they cannot prove to banks, landlords and utility companies that they are reliable.
In fact, Barrett Burns, CEO of VantageScore Solutions, saw this play out to someone very close to him. After her husband died, a retired female relative of his went to get a credit card to help her manage the nex expenses. However, with no real credit history to speak of, she was only offered a $400 limit, far too small to handle the payments she needed to make.
"I was outraged," Burns told the source when asked about his relative. "How in the world could this happen? Well, she didn't have a credit score, so I saw it up close and personal. We recommend people keep at least [one] credit card alive."
Many seniors are likely to listen to Burns' advice and get a new credit card or start using an old one for more transactions. Because of this, it is important for merchants to make sure they can please all these retired customers.
For credit card processing merchants, it is important to ensure that all equipment is up to date and operational in order to complete transactions with all of their customers who plan on paying using a credit card or debit card.