Credit card options for retirees

[SYD]

Got irritated with and cancelled 28 degrees MC as they wouldn't waive the monthly fee which they have for many. My main Fx fee free Credit card is BW World MC with a limit of 28K but I'm concerned they will block it when I'm OS if any fraudulent activity is suspected. I could then use Fx fee free Debit cards but I have just successfuly applied for a US Hilton Aspire Amex card which is Fx free and gives me automatic Hilton Diamond status. It comes with a generous US$20K limit. Also successfully applied for the Star Alliance HSBC credit card which gives Star Alliance gold status and lounge access, fee free for first year but $499 pa after ....I think I'm set for now but unfortunately things always change!

How did you manage to get those if retired? What hoops and jumps? Maybe starting with HSBC? The US CC are another league for most.

 

[kpc]

How did you manage to get those if retired? What hoops and jumps? Maybe starting with HSBC? The US CC are another league for most.

Not retired....yet! Preparing for retirement

 

[VPS]

Got irritated with and cancelled 28 degrees MC as they wouldn't waive the monthly fee which they have for many. My main Fx fee free Credit card is BW World MC with a limit of 28K but I'm concerned they will block it when I'm OS if any fraudulent activity is suspected. I could then use Fx fee free Debit cards but I have just successfuly applied for a US Hilton Aspire Amex card which is Fx free and gives me automatic Hilton Diamond status. It comes with a generous US$20K limit. Also successfully applied for the Star Alliance HSBC credit card which gives Star Alliance gold status and lounge access, fee free for first year but $499 pa after ....I think I'm set for now but unfortunately things always change!

How hard was it to get the US card though - do you have a SS number

 

[kpc]

How hard was it to get the US card though - do you have a SS number

There were a few hoops but I do not have a SSN. Applied via Global Transfer from my Aussie Amex acct:

Post in thread 'Strategy to obtain US Amex'

Feb 11, 2025

Updated Strategy for Obtaining US Credit Cards (2025).


What’s the deal with obtaining US credit cards?

• Lucrative Offers: The US market often has some of the best sign-up bonuses and rewards programs around. Compared to what's available in Australia, the deals can be significantly more attractive.
• Variety and Flexibility: There's a huge variety of credit cards in the US tailored to different needs, whether it's travel rewards, or points systems and other benefits.

Of course, your experience might vary, and what works for one person might not work for another...

• ithongy

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[Scash]

Myself and Mrs Scash are retired and we have both had credit cards approved. There are a number of lenders who will accept superannuation as income. We have recently been approved (individually) by ANZ and before that Qantas Premier Platinum. Mrs Scash was told by ANZ that her super drawing was insufficient to meet the application criteria (they wouldn't say what the minimum income requirement is) so she increased the drawing, got a letter showing the increased payment and was then approved.

 

[SYD]

Myself and Mrs Scash are retired and we have both had credit cards approved. There are a number of lenders who will accept superannuation as income. We have recently been approved (individually) by ANZ and before that Qantas Premier Platinum. Mrs Scash was told by ANZ that her super drawing was insufficient to meet the application criteria (they wouldn't say what the minimum income requirement is) so she increased the drawing, got a letter showing the increased payment and was then approved.

What sort of credit limit were you able to get?

 

[Scash]

What sort of credit limit were you able to get?

We just applied for the minimum which was $6k as we are doing this for the bonus QFF points and will then churn. Our main CC is with CBA. ANZ seemed pretty keen to approve the card. They called to clarify a few things and were happy with the "answers" I gave them.

 

[Peregrine]

We just applied for the minimum which was $6k as we are doing this for the bonus QFF points and will then churn. Our main CC is with CBA. ANZ seemed pretty keen to approve the card. They called to clarify a few things and were happy with the "answers" I gave them.

I'm a retiree, and I reckon that Cc providers will lend up to a total of about 35%-40% of your net income (but not interest, dividend income) assuming no other borrowers, defaults etc, but some Cc providers who you have history with will be more willing to provide credit. In my case, as a new applicant AMEX offered me 5k, but CBA who I have a long history offered me an increase of $7k on top of that.

 

[CaptJCool]

I'm a retiree, and I reckon that Cc providers will lend up to a total of about 35%-40% of your net income (but not interest, dividend income) assuming no other borrowers, defaults etc, but some Cc providers who you have history with will be more willing to provide credit. In my case, as a new applicant AMEX offered me a measly 5k, but CBA who I have a long history offered me an increase of $7k on top of that.

Wow

Perhaps I ought get going on these applications as my net super is rather decent and I need a CC to pay for dem J trips

 

[BJReplay]

I'm a retiree, and I reckon that Cc providers will lend up to a total of about 35%-40% of your net income (but not interest, dividend income) assuming no other borrowers, defaults etc.

I've had similar results - though my income is all interest & dividends (not super - I'm a retiree but have not yet reached preservation age) all of my income is dividends and interest received and distributed through a family trust.

One of the reasons I think I find it relatively easy is that I pay out last year's distributions regularly each month from the trust bank account into my personal bank account - so it not only shows that I have an income that matches my tax return, but it looks like I have the ability to service a credit card.

HSBC was happy with 20% of that income as a credit limit.
CBA was happy with about 35% of that income as a credit limit.

I haven't tried Amex (though I held Amex for a long time, I couldn't justify the fees for the points).

I got a car loan for a total of 125% of that income over five years (annual payments 25% of that income) as well - car loan was 0% interest, so it seemed pointless to spend cash

Equifax Credit score dropped to 906 from 950 when I applied for the car loan, but it is now up to 962 again (and the car loan enquiry appears on my credit report, but not the actual loan).

 

[Peregrine]

I think Cc providers disregard dividends/interest because of risk that underlying funds can be dissipated, encumbered etc but where the is an interposed entity such as a trust, superannuation fund, there is less chance of this. So ditribuitions from a trust are subject to a trust deed, whereas interest income and the underlying funds are subject to the whims of the investor.

In my conversation with an AMEX csa, no regard was taken to income from my investments, only the super income hitting my account.

 

[lovetravellingoz]

I think Cc providers disregard dividends/interest

About a year ago at least some CC providers now have a stream for those that only have investment/retirement income.

For example Both Virgin Money and Westpac Black have been obtained by each of my wife and I in a relatively easy process.



Whereas, when I got a new ANZ Traveller CC several years ago I had to jump through many hoops to get the card.

 

[Beano]

Does all this relate to banks withdrawing your CC when you retire, subject to any retirement income you may have?

 

[Scru]

Hey gang,

Has anyone had any luck with CC approvals though retired and showing no income? I have seen some posts back in 2020-2022 but all very sporadic information

1. If so, could you please kindly share what banks they are
2. Any with higher approval rate based on your experience
3. The banks that I am considering would be: Amex Charge, QFF points, or HSBC Alliance
4. Anything that would give a higher chance of approval?
5. And the creditsavvy score is sitting at 900+

EDIT: 6. Have had a 10k NAB cc for the last 15 years, would that benefit any application?

TIA!

Sorry no update. After the person handling my HSBC application for a card with $10000 limit queried a discrepancy on the value of my residence (in one doc. I put $4mill. and another $5mill), I gave up in disgust. I am well served by the cards I have but was interested in the travel insurance which came with HSBC which at the time appeared to have no age restriction.

 

[Seat0B]

Does all this relate to banks withdrawing your CC when you retire, subject to any retirement income you may have?

No, I don't think so. It's more about difficulties encountered once you are retired and try to get a new credit card eg for a sign on bonus, a better deal or because you want a different one. Mr Seat 0A and I have a mix of government super pensions and self managed super pensions, and investment income that is more than we had as salary, but a couple of years ago, the main banks would not touch us:

Them: "you could withdraw all your super and sell your investments and then you would have no income."
Us: " we could have lost our jobs, and then we would have had no income. Why don;t you look at our tax returns for the last couple of years to see what our income is?"
Them: "Nope."

Some more recent posters such as @lovetravellingoz and @Scash are suggesting that banks now have a better way of accounting for people with retirement income rather than salary income. But my advice would still be to get as many cards with as high a credit limit as you think you might need before you retire, as this is likely to be easier. Plus as pointed out by @Peregrine, even those that are accepting retirement/investment income do this at a significant discount eg only count your income as worth 35-40% of the income, in our case, government super was only counted at 90% of the payment yet my self employed income was counted as 100% . It's good to see they are waking up a bit to the spending power of oldies in retirement (Amex has certainly seen a LOT of spending by me on travel in the past 12 months, with more to come), but I reckon it's still easier to do it all pre-retirement.

ETA: The banks have never tried to withdraw any of my current cards

 

[VPS]

Does all this relate to banks withdrawing your CC when you retire, subject to any retirement income you may have?

once you have a card they won't take it away because there is no way for them to know you have retired. As a retiree I was able to up my super payments to get across the line to get a new HSBC which gave me Star Alliance gold. As soon as I was approved then I just put them right down again.

Now I've just done a short term contract I'm going to have another go at getting another card for some sign up bonuses when I get home.