How much does age matter

[MeCasa]

I've had a battle plan where I have been paying down debt and palnning to borrow unsecured $50,000. My score is up to 773 but now I'm starting to think they may not lend me money because of my age, I'm 70. I know there is no set answer but ya'll know more about this so your opinions mtter to me.

[Slabenstein]

There is a set answer: per the ECOA, lenders cannot discriminate on the basis of age.

[CreditPoor]

Unfortunately, age does play a factor with underwriting. Average age life expectancy of men is around 74, so the question will be asked "Can this person reasonably pay this loan off with the interest at 70?"

Your DTI and income will heavily be scrutinized and as much as I hate to say this 50k loan is probably very unlikely 

[Slabenstein]

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@CreditPoor wrote:

Unfortunately, age does play a factor with underwriting. Average age life expectancy of men is around 74, so the question will be asked "Can this person reasonably pay this loan off with the interest at 70?"

Your DTI and income will heavily be scrutinized and as much as I hate to say this 50k loan is probably very unlikely 

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If you know of a lender where age is considered in underwriting, OP should apply there and take advantage of the civil liability that lender has opened themselves up to.

[CreditPoor]

Obviously law states age can't be a reason for denial, but if you're foolish enough to believe that age wouldn't be considered as a factor in determining whether or not to loan or not, well that's just naive. 

[Horseshoez]

Some folks say age is a factor (legal or otherwise), others say it isn't allowed to happen.  I'm 67 and have seen exactly zero evidence of my age being a factor in any of the applications I've done over the last year or two and said applications include a car, four credit cards, and a mortgage.  Among my peer group I have yet to hear from a single person who indicated they were denied credit because of their age.

[CreditPoor]

Banks typically consider several factors when evaluating a loan application, including credit score, income, debt-to-income ratio, and overall financial health. While age itself is not a disqualifying factor, being 70 years old can influence the decision, particularly if the loan term extends significantly beyond life expectancy.

Lenders will assess the ability to repay the loan based on your current income, assets, and possibly your retirement savings.

[Slabenstein]

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@CreditPoor wrote:

Banks typically consider several factors when evaluating a loan application, including credit score, income, debt-to-income ratio, and overall financial health. While age itself is not a disqualifying factor, being 70 years old can influence the decision, particularly if the loan term extends significantly beyond life expectancy.

Lenders will assess the ability to repay the loan based on your current income, assets, and possibly your retirement savings.

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I can't speak for every lender out there, but the places I've worked take the ECOA very seriously.  A lending decision being "influenced" by an ECOA-protected category would probably result in the person who made that decision losing their job.

[CreditPoor]

Think about it this way. You are the lender and a 70 year old man with very little savings, high DTI, recent debt, limited retirement savings and little to no collateral asks you for 50k....You know life expectancy for a man is 74, would you loan your money?

if I was a lender in this situation, I'd be thinking this person is looking to cash out and move to the Philippines and live out his golden years and my moneys gone. There is simply way more risk on the lenders side with really no upside to this loan.

[FlaDude]

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@CreditPoor wrote:

Unfortunately, age does play a factor with underwriting. Average age life expectancy of men is around 74, so the question will be asked "Can this person reasonably pay this loan off with the interest at 70?" 

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Average life expectancy in the US for males at birth is almost 74, but the OP is already 70 so according to the SSA actuarial table, can expect to live almost 14 more years if male, 16 if female (on average).

SSA Actuarial Table