Credit card options for retirees

[Beano]

Some friends just hired a car in UK and they made them take extra insurance because they only had a debit card even though they told them they had full car insurance

That's odd. I was in Europe recently and used a DC exclusively in shops and restaurants with no problem. Just put it in a card reader and away you go! The DC is a more definite way of paying as it comes straight from your bank account. I supose the only thing is that the seller can't extract more funds from your account unlike a CC.

 

[VPS]

That's odd. I was in Europe recently and used a DC exclusively in shops and restaurants with no problem. Just put it in a card reader and away you go! The DC is a more definite way of paying as it comes straight from your bank account. I supose the only thing is that the seller can't extract more funds from your account unlike a CC.

Car hire is very different to an object or goods you have received. Not sure why you find it odd when you stated the obvious reason

 

[Beano]

Car hire is very different to an object or goods you have received. Not sure why you find it odd when you stated the obvious reason

It was just a supposition. Thanks for confirming.

 

[Tiki]

When are Aussie banks going to start a fairer way to assess credit card apps? Yes, retirees may have a smaller income but many of us have paid off our houses, have no children to support and can spend a higher percentage of our income on discretionary things like travel? The US has a much fairer system where they assess you based on your Fico scores and proven track record of managing debt.

 

[Flyfrequently]

When are Aussie banks going to start a fairer way to assess credit card apps? Yes, retirees may have a smaller income but many of us have paid off our houses, have no children to support and can spend a higher percentage of our income on discretionary things like travel?

Possibly because as retirees without the burden of mortgage/school fees/orthodontic bills etc, we pay our cards in full and on time.
They don't make a cent out of us with late payment or interest charges @Tiki

I can't even get my credit limit increased by $5k and am "earning" more in retirement than I did in the latter years of employment - go figure!

 

[Seat0B]

then you might want to go to town on either increasing your existing CC limits

This is really good advice. I have a couple of cards with limits in the $25-30k range and it’s pretty easy to come close to those limits with a pair of J airfares and other travel expenses.

Then I got a no-limit Amex charge card. It’s the winner for my travel expenses. Only real downside, is the need to pay off in full each month. This doesn’t bother me as I always pay off my cards in full each month, but you can’t defer paying the bill on a charge card. In the past 3 months, I’ve charged over $50k to this card (upcoming cruise, related air travel, experiences and car in Iceland etc, fares and accommodation for Japanuary 2026 and hefty deposit on African safari for March 2026). As I said upthread, stupid banks to miss out on all of the fees they could make from this. Yep, I’m in peak travel while I can before the leukaemia returns .

 

[Seat0B]

No, my mum (at that time was with BankSA, credit card, true real credit card), when she retired, 12 years now since retirement, same card account, BankSA has not shut down her card, on the credit or the debit side.
But I always make sure that as soon as a purchase happens, money is moved across to cover the debt, ... dont wait for end of the month either.

Why do you say that @AustraliaPoochie, about not waiting until the end of the month to pay off the card. Just curious.

I like to keep the cash in a higher interest account (sorry to all the people with mortgages, but some of us do get a benefit from higher interest rates) and just pay off the card on the due date or 1 day before. For most of my cards, it is also possible to set up a card autopay, so you never miss the payment, even when travelling.

 

[tgh]

We have decided point earning is , for us, a (sic) pointless exercise , and plan to ditch our Amex plat cards.
We will then have to rely on free, bank issued debit cards, IMO a high risk exercise.
I am in the process of applying for a cheap. low fee, no point cc to use for everyday purchases and as protective barrier for fraud.
I am sure they would deny, but a provider will likely be much more interested in retrieving their money from a fraud , than mine….
From the providers perspective we will be very poor value , settling every month and earning them zilch.
If they spin me I will pursue the matter and see what happens...

 

[Seat0B]

settling every month and earning them zilch.

The card issuers do make money on every transaction - via a merchant fee which is usually a flat fee per transaction plus a percentage of the value of the transaction. This is paid by the merchant and often passed on to you via a cc surcharge. So although they don’t make interest, which I agree is lucrative for the banks, they do still make something, pretty much for nothing.

 

[Trekky1]

The card issuers do make money on every transaction - via a merchant fee which is usually a flat fee per transaction plus a percentage of the value of the transaction. This is paid by the merchant and often passed on to you via a cc surcharge. So although they don’t make interest, which I agree is lucrative for the banks, they do still make something, pretty much for nothing.

Some banks also charge a monthly fee now - my 2 current credit cards now charge $8 a month. And as I don't have a regular income, I can't cancel them and apply for ones that don't. They are making money from me, even if I don't use them. At least with Latitude (28 Degrees MC), I can get that $8 back in the form of a $10 gift card, if I charge $1,000 to it.

 

[ramboflyer]

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

I've never heard of such a thing. How would a bank know your post retirement income and why would they check? I've had credit cards since 1998 and retired 10.5 years and had about 5 cards approved since. I'm on a government pension and topped up by a part age pension so not a big income.
I'm about to apply for my next card for maximum sign on bonus points so probable won't get it approved after putting a hex on myself by writing this!

 

[burmans]

It was just a supposition. Thanks for confirming.

Car companies also put a hold on your CC which can be considerable, I’ve heard of more than $4000 on occasions. With a DC they take real cash as that deposit!

Post automatically merged: Today at 11:06 AM

I've never heard of such a thing. How would a bank know your post retirement income and why would they check?

Well, if you bank with them they can easily see the money coming in (or not)!

 

[Beano]

I've never heard of such a thing. How would a bank know your post retirement income and why would they check? I've had credit cards since 1998 and retired 10.5 years and had about 5 cards approved since. I'm on a government pension and topped up by a part age pension so not a big income.
I'm about to apply for my next card for maximum sign on bonus points so probable won't get it approved after putting a hex on myself by writing this!

A bank would know if they issued the credit card. With lots of business with the same bank it waives any banking fees but i still pay a cc fee.

 

[ols]

None of this resolves the issue of card issuers continually changing points earn, transaction fees, card yearly costs, changing interest rates and reducing payment windows.
Makes it even harder for us retirees to navigate the credit card world when we are prejudiced against in the first place for not having income from a job.