Credit card options for retirees

[burmans]

You do need to be more judicious and keep limits down but I’ve found you can definitely apply for cards if they are lower limit cards not the higher end ones that require a high income.

 

[RooFlyer]

@Lat34 @mel-world i’m in the same boat and there was discussion up thread that the HSBC card does have some human intervention where you can make a case rather than the auto stuff most of the big banks.

With this thread being hived off the HSBC discussion starts about here:

Post in thread 'Latitude 28 Degrees $8 per month starting September 2024'
Latitude 28 Degrees $8 per month starting September 2024
Much

I've just had my accountant ( who is also my SMSF accountant) write a letter essentially demonstrating my means and my history of pension & fund sustainability for the last four years together with P&L’s etc

Now to see if it works! EXCEPT HSBC no longer offers an aeroplan bonus so I’m not sure whether I want that particular card or not!

 

[bdl]

The online application seems to ask for proof of income though.

For Bendigo, all I needed was a tax assessment and a statement showing I'd paid off my tax balance. I was pleasantly surprised, both Bendigo and Amex have been sympathetic to my unique income situation when applying for credit cards - unlike the big 4 and coughibank (when they were a thing).

 

[Pushka]

For Bendigo, all I needed was a tax assessment and a statement showing I'd paid off my tax balance. I was pleasantly surprised, both Bendigo and Amex have been sympathetic to my unique income situation when applying for credit cards - unlike the big 4 and coughibank (when they were a thing).

I've been asked for a few documents plus have to go to a Post Office to prove identity.

• Your two most recent payslips
• If you're self-employed, your latest Notice of Assessments from the Australian Taxation Office
• If you receive most of your income from a government pension, superannuation fund, self-managed super fund or any other income, we'll need your most recent statement or a letter on the relevant letterhead.

but at least they recognise Superannuation payments.

So I'm thinking I might apply and if 28 degrees doesn't pan out well with the fees (I ordered a companion card) then that's a good alternative. All I need to do is get to the Post Office with the form.

 

[BJReplay]

If you receive most of your income from a government pension, superannuation fund, self-managed super fund or any other income, we'll need your most recent statement or a letter on the relevant letterhead.

Yeah, that's what Mrs BJReplay was asked for.

Their boilerplate requests don't leave a lot of room for people who don't fit the normal pattern of income.

But I think you get a phone number to call, and you will find that (once you've provided ID) that you can talk to someone, explain your situation, and probably provide proof of ability to service your card however works - that may be tax returns, bank account statements, whatever.

It may involve a bit of back and forth (it did for Mrs BJReplay) but the fact that the application asks for proof of income, and the letter says this is what you need to supply doesn't mean that's all they'll consider.

 

[OATEK]

I made sure I had a few CCs before retiring, 2 x no FOREX fees, one of which was 28degrees. The third CC was linked to our Bank holding the mortgage. Then I also pushed MrsOatek to get one as well from the mortgaging bank so that she always had ready access to a CC and didn't have to reply on mine. No longer have any debt with the bank, but because I haven't cancelled the line of credit loan, the bank still hold the mortgage, which suits me.

Will stick to 28degrees for now, but the BankWest World is my main card for OS travel.

 

[lakeman]

We are a retired couple with an SMSF and both have private investments earning about $40000 per year.
I had set us up with the fee free Citibank for local spend and a 28degree card in my name.
My wife had no card in her name and with the demise of the 28degree card we embarked on trying to get a cba card in her name (with fee free overseas transactions) and after a second try documenting the SMSF income to the banks satisfaction we were successful in getting a $20000 limit.
The first attempt faltered as the super documents were a bit old so I would suggest applying as soon as your SMSF accounts and audit are completed, which is what we did for our second attempt.
The downsides are that we get charged a fee if we don’t spend 4000 a month but there is a card with a lower spend.
The offset is we get qf points,travel insurance and can use the one card in Australia and overseas.
The other good thing is we didn’t have to talk to anyone in the Phillipines !
All documentation was handled via commbank website.
Applied Tuesday am, approved Thursday pm !

 

[Myrna]

This is a touchy topic for many retirees - getting a credit card - a fair bit of discussion in choice community. When i was in the workforce, no problem whatsoever of getting a credit card (banks falling over themselves to keep increasing my limits!). So the advice 'getting a credit card while still working' is sound.

Last year I managed to get the cba ultimate card in my own name - it was a bit of hassles. They wanted to see my tax returns from the ATO website (they told me how to do that) - tax accountant was not much help, he said just send them my tax returns he lodged (which cba did not accept). They only counted 20% of my investment income (interest, dividend) - but took into account the full rental income from an investment property (which we have now sold).

I have been telling all my girlfriends to get themselves a credit card in their own names. Some said 'no I don't need one because I have one with my husband!' I said 'if he kicks the bucket, his credit card is closed - you will have no credit card!' One girlfriend applied online and got rejected immediately. She could not understand how her bank could do that to her - when they have always banked with it, and invested millions with them etc. I told her to go to the branch to see their bank manager. They did and finally got it. She then said she would make a complaint to the human rights commission for discrimation against older people!

 

[BJReplay]

I have been telling all my girlfriends to get themselves a credit card in their own names.

Good advice. Ideally a zero-fee card. It doesn't have to earn points or have a large credit balance - just something that allows them to be able to pay for things if and when necessary.

I said 'if he kicks the bucket, his credit card is closed - you will have no credit card!'

Exactly. I know a few people who this has happened to. One unfortunate suicide - imagine dealing with the shock of a suicide and having no access to cash, credit, and having to borrow from friends and family to do anything - like fill up with petrol or buy food, because all funds were in someone else's name - and you've made the honest mistake of telling the bank that the primary card holder is deceased, so they immediately freeze the account, including your secondary card.

She then said she would make a complaint to the human rights commission for discrimation against older people!

Won't do anything, except provide a distraction for her. It's not discrimination against older people or females in particular, it's applying credit rules that apply the same rules to people who haven't demonstrated a regular income and the prior ability to service a debt in the past - which historically means it discriminates against women who have had periods out of the workforce, haven't had debts or income in their own name, or who are young or old.

 

[mel-world]

Slightly OT but if you have an account (with card(s) attached) that either party can operate, does the account still get locked if one person dies? Cannot the other party continue to operate the account and cards?

 

[BJReplay]

Slightly OT but if you have an account (with card(s) attached) that either party can operate, does the account still get locked if one person dies? Cannot the other party continue to operate the account and cards?

I'm guessing that you're talking about a) a joint account, and b) debit cards against that joint account?

If so, then either party can continue to operate. A joint account doesn't get closed if one of the account holders is deceased - provided it is set up as either to sign / operate.

But (and this is a big but) - they need to be able to identify themselves to the bank successfully if they need to do significant things to the account (make unusual payments - like a big payment that is more than a usual limit - to pay for a funeral, for example, and they don't know how). Our joint savings account which is our emergency account has a transfer limit of $10,000 and a BPAY limit of $5,000 on it. I don't think Mrs BJ Replay knows that off the top of my head (or her head, more to the point).

So, part of your planning should not only be having joint accounts so that the surviving partner can continue to operate accounts, but the ability for that partner to be able to manage that account.

That can be a cheat sheet - answers to security questions, for example.

Continuing OT - takeover provisions for password managers so that the surviving partner can log into the decedents accounts as necessary.

Store shared secrets in a shared password manager.

Store information such as transaction limits and how to increase them in a shared password manager.

Make that the everyday password manager so that it is used every day - so that accessing those shared secrets is simple, rather than something that needs to be managed in an emergency under stress.

In my case, those notes are in the shared password manager that we use.

Mrs BJReplay finds it annoying, and doesn't read the notes.

Hopefully she remembers when I get hit by a bus that I have reminded her that it's there for reason, and the annoying notes are there for a reason.

My much more rational children also have emergency takeover rights (and are more likely to remember to remind her).

 

[Pushka]

I understand that credit cards can only ever be in one persons name (and therefore responsibility) but an additional card holder can't actually operate the account other than use the card. If the main card holder passes then the account is closed. Debit cards are different as there is only cash not credit.

And they do scour death notices. I couldn't believe how fast organisations acted on my MIL death and then my fathers.

 

[luckypierre]

understand that credit cards can only ever be in one persons name (

Apparently Bendigo bank have a credit card option for joint account holders

 

[Cynicor]

Interesting. I’ve not heard of a CC with shared account holders. Never really looked into it either, though.

 

[CaptJCool]

Banking - Earn Qantas Points | Qantas Frequent Flyer

Earn Qantas Points on banking products including savings account, transaction accounts, term deposits, Buy Now Pay Later and more.

cardsandbanking.qantas.com

any of these useful to retirees?

 

[SYD]

Banking - Earn Qantas Points | Qantas Frequent Flyer

Earn Qantas Points on banking products including savings account, transaction accounts, term deposits, Buy Now Pay Later and more.

cardsandbanking.qantas.com

any of these useful to retirees?

Probably useful for anyone looking to earn a few extra QFF points. But they don’t solve the problem of being able to get a CC if not salaried.

 

[CaptJCool]

Probably useful for anyone looking to earn a few extra QFF points. But they don’t solve the problem of being able to get a CC if not salaried.

Yes that’s what I thought

I’m now cash rich so to speak

However nothing In the QF material suggests the alternative Debit card gets any signup bonus nor a decent points stream (Qantas money pfft 0.25 per $ spend; they’re taking the p… right?)

 

[SYD]

Yes that’s what I thought

I’m now cash rich so to speak

However nothing In the QF material suggests the alternative Debit card gets any signup bonus nor a decent points stream (Qantas money pfft 0.25 per $ spend; they’re taking the p… right?)

Debit cards that earn FF points are very rare.

The QF money card is another but I wouldn’t use it OS. And like the stored value cards (Wise included), they card issuer is earning interest on your money.

 

[Pushka]

Banking - Earn Qantas Points | Qantas Frequent Flyer

Earn Qantas Points on banking products including savings account, transaction accounts, term deposits, Buy Now Pay Later and more.

cardsandbanking.qantas.com

any of these useful to retirees?

Credit cards are the problematic ones. Although 28 degrees card, now with the added $8 a month fee accepted me.

 

[Myrna]

Won't do anything, except provide a distraction for her. It's not discrimination against older people or females in particular, it's applying credit rules that apply the same rules to people who haven't demonstrated a regular income and the prior ability to service a debt in the past - which historically means it discriminates against women who have had periods out of the workforce, haven't had debts or income in their own name, or who are young or old.

Agree! We had a good laugh when our girlfriend said she would file a complaint with the human rights commission. Hubby said it would make her feel good, but it would not do any good