Credit card options for retirees

[ols]

I'm retired for 11 years now. In January I was approved for the Amex Velocity Platinum card with its free flight and lounge entry every time I fly with Virgin plus excellent points earning including 100,000 sign on bonus points. The process was very easy. I'm on a government super pension and part Centrelink pension and have no debt (apart from another credit card).
My credit rating is very high which I assume helps because I can see that it was checked by Amex. I'm guessing anyone with a good credit rating and reasonable income (there is no set annual income stated) would have a good chance of being approved.
I already have the Virgin Money High Flyer card (approved in 2024) with $15,000 limit because with Amex you need a backup.
I assume I would have been approved for the Qantas equivalent card as well.

I think the Amex Velocity or Qantas credit cards are the best ones to go after for retirees.
I don't think they are so worried about earning interest from you if you pay in full every month.
They are earning money from you back from the airlines you are involved with and it must be easier for them to justify giving you a card than it is for the major banks for their cards that aren't tied to an airline program.

 

[Brissy1]

The key is not assets - though cash assets (e.g. savings accounts dk help because they can - if they exist at the time of the debt, can be used to service it.

The key is (almost entirely) ability to service the debt that would arise if you were to max out your credit limit offered, and then make minimum repayments.

This depends both on income (super, pension, provable regular income from investments) and expenses. The excess income is your disposable income that will be used to determine your ability to service your debt.

It will take manual decision making (for example, that mentioned recently in posts just up thread) to treat assets such as cash as available to service debt. Why? Because after the card is approved (or the limit is increased) the cash can be withdrawn, and the debt can no longer be serviced.

I know elderly, retired people who have abused the system, made hardship complaints, and had large ($45k) credit card debts waived and/or substantially reduced after clearing out the savings account to pay off non-credit card debt first. It is those bad apples that make it hard for the rest of us.

Further it's TAXABLE income, such as mentioned previously a government super pension. I'll gladly exchange my taxable gov super pension (for which I had to contribute compulsory after-tax salary, and also didn't receive the % employer SG) for a tax free income, and have the "problem" of having a good net income and low/$0 taxable income!
Careful what you wish for, wait for the next round of "fairer and simpler" revenue raising changes.

 

[prozac]

I think the Amex Velocity or Qantas credit cards are the best ones to go after for retirees.
I don't think they are so worried about earning interest from you if you pay in full every month.
They are earning money from you back from the airlines you are involved with and it must be easier for them to justify giving you a card than it is for the major banks for their cards that aren't tied to an airline program.

Qantas American Express Discovery Card has a lower than average earning rate (0.75p/$) but it is FEE FREE! I have a referral code in the referral threads. I'd expect it is easy to be granted an approval, they threw it at me as an additional card.

 

[AustraliaPoochie]

Ummm who told you retirees have no debts

Parents.
Paid off home mortgage and pain off commercial rental property.

 

[luckypierre]

The process was very easy. I'm on a government super pension

I assume that this is untaxed, CPI indexed old style CSS or similar pension that is declared and contributes to your annual taxable income. This would be helpful for CC approval processes. In contrast to this banks, for CC approval, seem less interested in income derived from tax free super pensions

 

[Flyfrequently]

Qantas American Express Discovery Card has a lower than average earning rate (0.75p/$) but it is FEE FREE! I have a referral code in the referral threads. I'd expect it is easy to be granted an approval, they threw it at me as an additional card.

I had the Discovery card for many years @prozac Last year received an offer to upgrade to Q Amex Ultimate card, $450 annual fee but get $450 travel credit.
Pity they won't increase my credit limit

 

[prozac]

I had the Discovery card for many years @prozac Last year received an offer to upgrade to Q Amex Ultimate card, $450 annual fee but get $450 travel credit.
Pity they won't increase my credit limit

I keep calling them b/c I'd like an upgrade offer and they won't offer one. Most frustrating.

 

[ramboflyer]

I assume that this is untaxed, CPI indexed old style CSS or similar pension that is declared and contributes to your annual taxable income. This would be helpful for CC approval processes. In contrast to this banks, for CC approval, seem less interested in income derived from tax free super pensions

Yes, it is a CPI indexed defined benefit pension which is mostly taxable with a tax free component.

 

[VPS]

Parents.
Paid off home mortgage and pain off commercial rental property.

that doesn't mean every retiree has no debt

 

[SYD]

that doesn't mean every retiree has no debt

I suspect lots of Self-Funded retirees still have all sorts of “good” (deductible) debt for investment properties and margin loans (but by now, hopefully a lot of net equity).