High end card for points vs being retired

[Dr Ralph]

Happy to be corrected but it was my understanding that as far as the credit file agencies go, it doesn't matter if you are accepted or rejected.

It will be recorded on your credit file either way.

 

[burmans]

It will be recorded on your credit file either way.

Indeed, all that gets recorded is that there has been an enquiry, not whether successful or not or even if you ended up taking up the credit (warning bells here on this last bit for people who shop around for credit!).

 

[burmans]

You may well be right on some of these economic points Burmans but that doesn’t alter the fact that I have more disposable income now than I have ever had, combined with a higher monthly spend on holidays etc., but less chance of getting a new card. If you think that is reasonable, then we’ll just have to accept that we have different opinions.

At the end of the day our opinions have little to do with it, they are businesses who are allowed to set their own credit policies (and those policies are support by hard evidence) and they don't have to lend anyone money.

But I agree with those above, a face to face session with a lender may work better, above comments suggest not everyone has problems with lenders and I think unusual situations are easier to explain face to face than via an online form. Assuming your income really is verifiable, reliable and your spending to income ratio is low there definitely are lenders out there who will be happy to lend to you

 

[tgh]

I don't want to borrow their money , it's no about credit at all.. that's just a by product of harvesting points….

 

[JohnK]

Why do the banks make it so hard to get credit in retirement?

Someone with over $1 million in assets, no outstanding debt and earning $60,000-$70,000 from various income sources is not a credit risk. And if they are a credit risk give them a lower credit limit.

 

[andye]

Why do the banks make it so hard to get credit in retirement?

Someone with over $1 million in assets, no outstanding debt and earning $60,000-$70,000 from various income sources is not a credit risk. And if they are a credit risk give them a lower credit limit.

It may be more relevant that they are (on average) unlikely to make the bank much money (to pay for the bonus points)

 

[Deleted member 29185]

It will be recorded on your credit file either way.

Do you know what is recorded? I'm thinking all of the below, but I guess it's also possible only a) and d) are relevant.
a) an application for $xx_ of credit was made;
b) the application was approved
c) the application was rejected
d) an offer was accepted

*(Edited to correct a typo mistake)

 

[andye]

Do you know what is recorded? I'm thinking all of the below, but I guess it's also possible only a) and c) are relevant.
a) an application for $xx_ of credit was made;
b) the application was approved
c) the application was rejected
d) an offer was accepted

It's (a) only on the standard files.

With comprehensive reporting, more than that can be inferred although it's not tabulated in the way you suggest

 

[Dr Ralph]

Do you know what is recorded? I'm thinking all of the below, but I guess it's also possible only a) and c) are relevant.
a) an application for $xx_ of credit was made;
b) the application was approved
c) the application was rejected
d) an offer was accepted

Just (a) as far as I know.

 

[burmans]

Just (a) as far as I know.

Indeed, just (a). With CCR (assuming the lenders contribute) you will also know their credit limit and repayment performance history. If there is no history you wont know if it was because they were rejected or they just didn't accept.

 

[TomVexille]

Indeed, just (a). With CCR (assuming the lenders contribute) you will also know their credit limit and repayment performance history. If there is no history you wont know if it was because they were rejected or they just didn't accept.

Isn't the government forcing the lenders to actually contribute from mid next year?

 

[get me outta here]

Also, as retired people have to take a higher % each year from their super savings, it would be good to anticipate that and apply before the income dips down below the magic cc decent sign on bonus cards.

 

[burmans]

Isn't the government forcing the lenders to actually contribute from mid next year?

My understanding is they have said they would but am unaware of the legislation actually being introduced. (and then it will probably be phased)

 

[rogerkambah]

I'm retired and don't have a massive income. I'm a credit card deadbeat, as is my wife. We've both had 3 platinum CCs this year and collected sign-on bonuses of 410k. My fee outlay for 225K points was nil while hers was $150. The ANZ cards had no fee for the first year while my other cards had fees but these were refunded after spending around $7000 as we are both bank shareholders.

Not all CCs require the applicant to have large incomes, however as a defined benefit SFR I had to jump through a few hoops on my last application. After providing a letter from my super fund detailing the payments they made to me and a bank statement showing the same payments arriving in my account they were satisfied with this. I realised I was dealing with an amateur CSO as I had to explain how a DB fund worked as this concept seemed to be alien and they wanted to know the opening and closing balances of my fund equity over a 6 month period.

Detailing my share dividend income was a bit of a pain as they wanted evidence of shareholdings and bank statements showing the income. I also had to give evidence as to when dividend payments were made, from their bank!!!! ROFL.

However I advise that one perseveres as the large sign-on points benefit can be quite worthwhile for minimal outlay.

I have a QF Amex fee-free card that I use for my monthly phones and internet deductions so I don't have to remember to change these deductions from one card to another before I cancel.

 

[Lynnelanne]

I'm retired and don't have a massive income. I'm a credit card deadbeat, as is my wife. We've both had 3 platinum CCs this year and collected sign-on bonuses of 410k. My fee outlay for 225K points was nil while hers was $150. The ANZ cards had no fee for the first year while my other cards had fees but these were refunded after spending around $7000 as we are both bank shareholders.

Not all CCs require the applicant to have large incomes, however as a defined benefit SFR I had to jump through a few hoops on my last application. After providing a letter from my super fund detailing the payments they made to me and a bank statement showing the same payments arriving in my account they were satisfied with this. I realised I was dealing with an amateur CSO as I had to explain how a DB fund worked as this concept seemed to be alien and they wanted to know the opening and closing balances of my fund equity over a 6 month period.

Detailing my share dividend income was a bit of a pain as they wanted evidence of shareholdings and bank statements showing the income. I also had to give evidence as to when dividend payments were made, from their bank!!!! ROFL.

However I advise that one perseveres as the large sign-on points benefit can be quite worthwhile for minimal outlay.

I have a QF Amex fee-free card that I use for my monthly phones and internet deductions so I don't have to remember to change these deductions from one card to another before I cancel.

Thank you for that information. It sounds as though you know a lot about super and shares and ‘stuff’. I am not sure what an ‘amateur CSO’ is so I must be even more amateur! However it’s good to know that it can be done. I presume that your getting accepted for the card involved lots of face to face from what you have said, and I think that’s what I have to pluck up the motivation to do....go and actually see a human (?) being at the bank.

 

[rogerkambah]

I refered to the customer service officer from the bank who called me as an amateur because from their questions they seemed to know nothing about income from defined benefit super schemes and didn't even know when the bank that they worked for paid share dividends.

I have not had face to face contact with bank officers concerning a cc application for a couple of years. When I last had f2f contact the branch bank officers just acted as a post office to pass info on to the cc area.

Some sign-on bonuses are only available through online apps and they only need the same info that one has to provide if going onto the bank.

It seems to be pot luck as to how informed the CSO that handles your app is. My last one was not so good but we got there in the end.

I have found that my credit rating has been little affected with 3 cc apps over a 12 month period. It drops about 5 or 6 points immediately after an app has been approved but then recovers before the next one.

Good luck.

Thank you for that information. It sounds as though you know a lot about super and shares and ‘stuff’. I am not sure what an ‘amateur CSO’ is so I must be even more amateur! However it’s good to know that it can be done. I presume that your getting accepted for the card involved lots of face to face from what you have said, and I think that’s what I have to pluck up the motivation to do....go and actually see a human (?) being at the bank.

 

[Renato1]

As a retiree myself, I've run into similar problems, even though in after-tax terms I'm on about the same income as when I was working and could get most any card back then.

Two possible solutions.
1. Apply for cards which in the on-line forms ask for income in after-tax dollars rather than pre-tax dollars. There are some around that do that.

2. Where the application asks for income in gross pre-tax dollars, do the calculation and work out how much pre-tax dollars you would need to achieve your current post tax income, and put that figure in. When the bank challenges you, you point out that you are hardly paying any tax, and that the notional pre-tax figure you have put in helps them, as it puts you on par with all the more highly paid people they are giving cards to, but who actually receive less money than you do. That worked for me once.
Regards,
Renato

 

[BettyB]

1. Apply for cards which in the on-line forms ask for income in after-tax dollars rather than pre-tax dollars. There are some around that do that.

Which ones?

 

[Renato1]

Which ones?

Sorry I can't remember. I did come across one in my intial flurry of applications after I joined here.
Regards,
Renato

 

[van]

I don't know what the problem is with credit cards in retirement. Whilst employed I mainly used a CBA Amex Black and ANZ Amex Platinum with associated MasterCard & Visa. The ANZ cards were cancelled by me when they ceased issuing Amex. Then the CBA made FF rewards miserable so I looked for a better deal. I applied for an Amex Qantas Ultimate card with a retirement income of nearly 6 figures. No problems getting the card. My wife on a similar retirement income applied for a Amex Velocity Platinum with the same result. We are now collecting Virgin and Qantas FF points at a reasonable rate.