Credit card options for retirees

[mrsterryn]

We have a reasonable income from two pensions each.. however I won't even apply as I have zero expectations of being granted. Similarly to others we have a few credit cards from when we were employed .
All cards are used and cleared each month
(Except the DJs one no idea what to do with that one )

 

[AustraliaPoochie]

My mum who retired in 2013 from the nursing profession, had kept her real credit card ongoing from then, till now.
The bank has not ever declined sending her a replacement card, each time the other one expires.
I guess, if anyone is retiring or planning to, is to get a low cost credit card while still working.
Once retired, it would probably be ok/easy according to what some mention on here, of applying, but there is a small chance banks/issues might decline.
On the other hand, if you get approved, just be aware of the chance of going too deep, and always pay off the debt each month.

 

[KingHuang]

Adding more facts with a $800 govt income a fortnight would basically have not many good choices vs the current signature NAB (175. Annual fee), right?

Or perhaps just go for it and see what happens as mentioned earlier

 

[AustraliaPoochie]

Would be hard to say, as it all depends.
Sometimes, assessors from different issuers/banks have an interest in earning commission, so will allow the card, some might decline the card, as the deem your options of paying it back will be hard on that $800.
Also, is it $800 solo/single, or is there the other half in the relationship.
If you do want to give it a try, no harm in that.
They can only decline the application, if they feel you don't have the capacity to repay.
$800 is not a lot, if a solo/single.
Best also to list other income, if you have it too.

 

[Zinger]

I'm living off super and have done so for quite some time. In recent years I've applied for and received a few new points earning credit cards including an AMEX card late last year. No problems at all with instant approval.

I just apply for what I need and is obvious will be easily paid in full each month.

Try checking out your credit score here. It tends to increase every few months and an application for a new card will decrease the score by I think 10 points. Free credit score & credit report | GetCreditScore

 

[SYD]

I guess there must a gross net worth point where credit cards become readily available regardless of income source, there seems no other explanation.

No.

Both SYD+1 and I applied for a modest credit limit increase on our 28° MC earlier this year. We both have significant income from investments etc but computer said “No” and the more you asked why the more they wanted more detailed and irrelevant info. Horrible experience - to the point I felt like cancelling the card - but that would be a step backwards!

They also pinged my near perfect credit rating and chipped off 50 pts…

Fortunately we both have multiple CCs but as mentioned earlier, make sure you have your financial affairs in order before retiring! ie apply for CC while you have regular salary (even if you’ve been made redundant - get that CC application in immediately).

 

[OZDUCK]

No.

Both SYD+1 and I applied for a modest credit limit increase on our 28° MC earlier this year. We both have significant income from investments etc but computer said “No” and the more you asked why the more they wanted more detailed and irrelevant info. Horrible experience - to the point I felt like cancelling the card - but that would be a step backwards!

They also pinged my near perfect credit rating and chipped off 50 pts…

Fortunately we both have multiple CCs but as mentioned earlier, make sure you have your financial affairs in order before retiring! ie apply for CC while you have regular salary (even if you’ve been made redundant - get that CC application in immediately).

I am on a Comm. Public Service Pension and we also tried for a modest increase on our 28 MC a few years ago, from and were knocked back. I couldn't be bothered chasing them up but it was annoying.

 

[mrsterryn]

I am on a Comm. Public Service Pension and we also tried for a modest increase on our 28 MC a few years ago, from and were knocked back. I couldn't be bothered chasing them up but it was annoying.

That is what I find weird. We have CPI twice a year, guaranteed income till we cark it.

 

[OZDUCK]

That is what I find weird. We have CPI twice a year, guaranteed income till we cark it.

And because I was able to use the 54 years and 11 months age option under the old CSS scheme my pension was not much less than my last salary - once you took away Super payments etc.

 

[SYD]

I am on a Comm. Public Service Pension and we also tried for a modest increase on our 28 MC a few years ago, from and were knocked back. I couldn't be bothered chasing them up but it was annoying.

Yep, I have a small CoA pension plus investments. Unfortunately the Directors fee I pay myself was all salary sacrificed into super - so that didn’t count. If I work out what the magic numbers are in their system (min salary and history eg 3 mths). I might just pay myself the min for X months and apply again. They have an auto approve function that’ll probably go through. Stupid really….

 

[Askance]

Ive been retired for four years and am living off passive income (not super). I had the Amex Qantas Discovery card prior to retirement and Amex recently offered me an upgrade to the Ultimate card and bonus points without doing another credit check. A month ago i need to increase the limit to pay for airfares and they did do a credit check and asked for income proof, however they accepted proof of my assets instead and approved it.

So my suggestion would be start with Discovery and move up. Its not as lucrative as churning while employed but it is something.

 

[SYD]

Ive been retired for four years and am living off passive income (not super). I had the Amex Qantas Discovery card prior to retirement and Amex recently offered me an upgrade to the Ultimate card and bonus points without doing another credit check. A month ago i need to increase the limit to pay for airfares and they did do a credit check and asked for income proof, however they accepted proof of my assets instead and approved it.

So my suggestion would be start with Discovery and move up. Its not as lucrative as churning while employed but it is something.

Yep, AMEX are good for existing customers. I was able to get a QF Biz CC starting up my company - easy as. WBC wanted 3 yrs trading history….Declined.

 

[Seat0B]

No.

Both SYD+1 and I applied for a modest credit limit increase on our 28° MC earlier this year. We both have significant income from investments etc but computer said “No” and the more you asked why the more they wanted more detailed and irrelevant info. Horrible experience - to the point I felt like cancelling the card - but that would be a step backwards!

They also pinged my near perfect credit rating and chipped off 50 pts…

Fortunately we both have multiple CCs but as mentioned earlier, make sure you have your financial affairs in order before retiring! ie apply for CC while you have regular salary (even if you’ve been made redundant - get that CC application in immediately).

Yes this is the sort of thing my friend had experienced, and advised us to avoid at all cost.

We too have significant income from a mix of govt super pensions, SMSF pensions and investments and even some part time work, but the "wealth adviser" (who may well be channeling "you know nothing, John Snow") said that the only part of that they would count was 90% of the value of the Govt pensions (and DFRDB pensions are low) and the part time work, discounted by some amount for being part time.

So we also decided not to bother applying and risking damage to the credit rating. Although, I guess if you can't get any credit, what do you need a perfect credit rating for?

 

[Seat0B]

I'm living off super and have done so for quite some time. In recent years I've applied for and received a few new points earning credit cards including an AMEX card late last year. No problems at all with instant approval.

I just apply for what I need and is obvious will be easily paid in full each month.

Try checking out your credit score here. It tends to increase every few months and an application for a new card will decrease the score by I think 10 points. Free credit score & credit report | GetCreditScore

Another thing that is infuriating about all these experiences is how variable they are - our experience is much more in line with @SYD than with yours @Zinger and who knows why? The banks are as consistently inconsistent in this space as Qantas. I wish they would realise what a great set of clients they are discriminating against - we have way more money now (both income and assets) than we did when the cards we hold were granted, and way fewer expenses than we had at that time.

 

[Seat0B]

That is what I find weird. We have CPI twice a year, guaranteed income till we cark it.

And then your pension is probably reversionary to your partner as well....

 

[Seat0B]

Yep, AMEX are good for existing customers

Just such a pity their cards are still not as widely accepted here or overseas as Mastercard or Visa

 

[ellen10]

Yes I agree with all that has been said. We are retired and probably should have applied for another cc each, before retirement.
I have had my current frequently used card for 10 years, always paid off on time each month. I recently asked them for a modest increase of $2000, no go, as I am « retired » even though we have no debts own our house, cars etc and have a considerable super balance .
I didn’t apply, I just asked the question whilst on the phone about another matter.
Very frustrating !

 

[mrsterryn]

And then your pension is probably reversionary to your partner as well....

Yep it is and vice versa

 

[KingHuang]

Would be hard to say, as it all depends.
Sometimes, assessors from different issuers/banks have an interest in earning commission, so will allow the card, some might decline the card, as the deem your options of paying it back will be hard on that $800.
Also, is it $800 solo/single, or is there the other half in the relationship.
If you do want to give it a try, no harm in that.
They can only decline the application, if they feel you don't have the capacity to repay.
$800 is not a lot, if a solo/single.
Best also to list other income, if you have it too.

It would be circa $40k income per year through government

 

[KingHuang]

Just check my posts...Amex, citibank/NAB.

Qantas Premier Credit Card

Did you have to give them all your income and expenses etc? I certainly did. I was honest and was slightly under with their annual income minimum but thought I would submit it anyway expecting a refusal. This wasn't the first time I didn't quite make the income minimum and got approved. I...

www.australianfrequentflyer.com.au

And just today (although i didn’t specifically note the lack of detail I supplied. I just can't be bothered filling in the details requested anymore. Just let them call you.):

Card Promotions - G&C Mutual Bank Platinum Visa Credit Card. 50,000 bonus QFF points for a new card.

I’ve not dealt with or seen any offers from this bank previously. But I decided to have a go and sign up. Some key points for the current offer: 1) Sign up, spend $5000 in the first 90 days and get 50,000 bonus QFF points. 2) Annual fee of $299. 3) Earn 1 QFF point per $1 spend, up to 20,000...

www.australianfrequentflyer.com.au

For Amex - would you just write not retired then? Since there's still incoming coming in...