CC applications - have they got more onerous?

[mviy]

Have CC applications got more onerous?

I was asked for a 2020 Tax Return which isn't even due to be lodged by the accountant until May and they wouldn't accept the 2019 return as an alternative saying that it's too old.

I deliberately went for a lower end credit card with a much lower credit limit than a recently cancelled card to make the application process easier. Seems that didn't work.

Would contacting their complaints department be advisable?

 

[Daver6]

I think you'd get much further if you explored other ways to prove your income. I guess if you're a sole trader that's a bit more difficult though. Depends what your source of income is.

And yes, in the last 12-18 months I've found that they've been much more rigorous at looking at your ability to service the debt and more proof of income required.

 

[Scr77]

Was this CBA? Personally and via work (not my business), I’ve found them much more stringent.

 

[BillytheFIsh]

I’m self employed so I am used to jumping through hoops but I recently applied for an ANZ card and after the 6th phone call asking for different documents that they could have asked for at the beginning (more than I was asked for on a home loan application) I told them to forget it and I would go elsewhere.

I applied for a Citi card, uploaded my 2020 NOA and tax return as part of the application process and it was approved within a couple of days.

I recently also applied for car finance and it took all of 10 minutes on the phone. I suppose that is secured but I won’t be rushing back to ANZ.

 

[mviy]

I’m not a sole trader and no it’s not CBA. Sounds like I’ll just have to try and get the tax return done soon which will depend on the accountant‘s schedule. Only recently gave the documents to them as I didn’t think that there would be any rush to get it done.

 

[cove]

We just filed our tax returns for 2020. Have close to zero interest in getting any new credit cards as St.George Amplify, two Amex cards and Bankwest World are all working ok. No points for ATO but we have plenty anyway.
Banks need to be careful not to allow anyone to get over extended as the debt can get wiped off by the regulator.

 

[mviy]

I cancelled a card with a higher credit limit so I’m actually looking to downsize the amount of credit I have versus what I had last month. I’m not looking to over extend.

 

[Dr Ralph]

"CC applications - have they got more onerous?"

No.

 

[jellybelly]

CBA rejected my credit card application even though I have a home loan with them

 

[Scr77]

CBA rejected my credit card application even though I have a home loan with them

Same with my wife. Home loan was paid off in 15 years and had a $88 balance at application. Perfect repayment history, same job the whole time and far fewer financial commitments at time of CC application. Just doesn’t make sense.

 

[fastferret]

I applied for a Qantas cc two months ago and was knocked back, despite a spotless credit record, minimal debt and a very good income.

I suspect it was because I disclosed that I was planning to retire in the next few months.

My income will remain high and I have plenty of evidence of this, but there is not mechanism to challenge the the decision, not even a contact phone number. Very frustrating!

 

[mviy]

I suspect it was because I disclosed that I was planning to retire in the next few months.

I would think so too. Unfortunately retirement has long been a reason to deny CC applications.

If you are retired and overspend if you aren't willing/able to re-enter the workforce you may find it difficult/impossible to get back up to date.

 

[Port Power]

I recently applied to HSBC and found the process mulch more onerous than my last application (for a Qantas CC) a couple of years ago. From reading this thread, it may just be the new “normal”. The girl from the Branch would not telephone me as I suggested then requested, but kept emailing wanting a “statement“ but without specifying that date of the one required. She and the applications team also wanted another statement even though I had told them and wrote in emails three times that said statement would not be issued until March 31. All this because I wanted their CC for domestic travel insurance: not sure it’s worth the hassle.

 

[mviy]

I'm suspecting that there will be lots of people with growing points balances with international borders closed. Once international travel resumes QF may decide to devalue points. So my main reason to churn is to get the sign up bonus and maintain the number of trips that the points will allow me to do assuming that happens. If it doesn't it'll help me start to save up the points for a further trip.

 

[keilya]

I am retired and recently commenced an application for a Qantas card but did not finalise it. Subsequently received reminders to complete application which I did and after submitting one Government superannuation statement card was approved quite promptly and is now in use. However, over the years other applications have not always been successful. I suspect being retired can raise red flags and the assessors are not familiar with the reliability of government pension schemes.

 

[mviy]

I am retired and recently commenced an application for a Qantas card but did not finalise it. Subsequently received reminders to complete application which I did and after submitting one Government superannuation statement card was approved quite promptly and is now in use. However, over the years other applications have not always been successful. I suspect being retired can raise red flags and the assessors are not familiar with the reliability of government pension schemes.

They will consider a range of factors such as:

How long have you been living where you are living
Do you have any other debt etc.

The less in your life relating to income generation that has recently changed or will change soon in a negative way the better.

Transition to retirement isn't always easy and for most people there is a drop in income versus when they were working which can lead to overspending if people don't adjust their lifestyle accordingly. When an athlete retires if they don't gradually cut their fitness and food intake, and instead immediately start doing very little exercise and continue eating as if they were still training for hours every day they'll quickly put on weight.

If you've been retired a while your lifestyle hopefully has adjusted to account for your change in income. Considering that once you're retired sustainably boosting your income may not be possible that's going to make most assessors more reluctant to approve than someone on the same income who is working full time.

 

[Bodie]

A little off topic but banks are taking longer to approve finance and release mortgages. We are selling a unit (EPOA ) and buyer had a valuer go to the unit 6 business days prior to finance approval deadline - we gave the 2 extra days until finance was finally approved. Our real estate also mentioned that some final settlements been delayed due to delays in releasing necessary documents.

Dont start with commonwealth bank and trying to register Epoa, what a nightmare.