Credit card options for retirees

[Beano]

When you say "retiree", do you mean left work? I am a retiree (giveaway here but still working, and flying regularly), and have a credit card. Anyway, if you already have a credit card, retire and revert to superannuation, will the CC company question that?

 

[Amanad78]

And then a month later, I got a letter from them stating that I needed to cancel my QF card, as I'd stated in my application.

I got the same letter after about a month (I had said I was planning to cancel a card too).
I didn't cancel the other card and so far nothing has happened.....hopefully stays that way.
I'm not retired yet but work part time so don't always meet the income threshold

 

[burmans]

you don’t think a punter being able to pay their card off every month would be seen as a positive by the prospective new credit card issuer?

Well to take the negative view on this, given they are looking at income vs expenses (as required to) the more you are paying out on other debts ups your expenses each month and leaves less money to pay this new debt.

Because credit providers can only see the limits on your cards (not balance) they frequently estimate your estimated payments based on this. Which is why one advice I always give to those looking for a new CC is always to either/both get rid of unused credit lines and reduce limits where possible.

 

[Beano]

Wouldn't they look at your total financial business with the bank? You investments with the bank would be collateral?

 

[Gremlin]

Sure, but they can ask or it can be volunteered - which I was ready to do, and demonstrate if needs be because of my particular circumstances in application. IITC there also was stuff on my application which I had to put in, but which wasn't check-able by the issuer. There was also one enormous hole that they didn't ask for.

But to go back to the initial thing - that the credit assessor would view the applicant's assets and liabilities in their entirety. And the ability of an applicant to service their existing debt, and any additional being applied for I would have thought would be a useful thing to be considered, whether or not in the mandatory govt code or simply by request to the applicant "this is optional but may assist your application if answered".

What you're suggesting amounts to bespoke underwriting of the credit application. Which is a lot more expensive for the lender. And means a much higher threshold before they are going to make a dollar out of you as a customer. The banks are not a charity and it's an entirely reasonable business decision to pursue customers who are a lower cost per acquisition. It's their money they are lending after all...