Credit card options for retirees

[Flyfrequently]

Splitting payment across two cards isnt an option with SQ, I wanted to pay for a ticket with my Amex, but ended up having to put extra cash into my Bankwest credit card so I could pay for a ticket that exceeded my limit Dont know if Amex allow that but BW customer service were the ones to suggest it.

Don't think I can split payments with QF either @Askance.
Also, I did ask Amex if I could put a few extra $ in credit on my card prior to purchase, answer was a definite no, it would be flagged and account would be closed!

 

[Flyfrequently]

It's hard l. From your point of view you are a great customer but from the CC provider pov, you are not going to end up paying exorbitant interest. They will pick up a small percentage on spend but they have an excuse (no occupational income) to knock you back

Thanks @andye agree entirely!

Son in law racked up a 60k credit card debt a few years back, only paying minimum monthly repayments- interest was staggering!
They were close to losing their house but our FP sorted them out, able to refinance but still they have a higher credit limit and our incomes are the same
As you say, no occupational income.

 

[Cynicor]

I know people think banks are only after CC interest but I’ve seen no evidence of this in rejection patterns. Sometimes you have to accept incompetence rather than malice.

You have no formal employment income, and the banks are too stupid (or just don’t care, more likely) to organise a different route to a credit card. There may even be laws making it harder for them.

I’ve not ever heard of anyone with lots of assets and high formal employment income being denied cards regularly, so clearly the “you won’t earn the bank interest” is a nonsense line. They earn money on interchange fees anyway.

 

[andye]

I know people think banks are only after CC interest but I’ve seen no evidence of this in rejection patterns. Sometimes you have to accept incompetence rather than malice.

You have no formal employment income, and the banks are too stupid (or just don’t care, more likely) to organise a different route to a credit card. There may even be laws making it harder for them.

I’ve not ever heard of anyone with lots of assets and high formal employment income being denied cards regularly, so clearly the “you won’t earn the bank interest” is a nonsense line. They earn money on interchange fees anyway.

Agreed. There may well be responsible lending guidelines that make it difficult. But, if there was a lot of money in it for them, I'm sure they would try harder to solve the issue

 

[CaptJCool]

The biggie here is no taxable income
no taxable income means no income tax to pay the ATO but it also means no CC card. Your passive income stream “doesn’t count” well unless it’s to deny you a Centrelink age pension but it does count for the Seniors Health care card. A nice little annual $4,000 bonus there

Why banks won't give older Australians a credit card or loan

Age discrimination is a thing in banks; here's how to fight back.

www.thesenior.com.au

Why retirees are being denied credit cards | CHOICE

Australian retirees are being denied credit cards they say they can afford – the banking industry says it’s just following the rules.

www.choice.com.au

In addition
I reckon the other points to note
Substantial assets don’t easily convert to cash
How many curl up their toes with an outstanding CC debt?
Loyalty pfft
The CC signup bonuses are intended for people who “rack up debt”
Because of the banning of automated credit card limit increases it becomes a way for the banks to get around that hurdle. You entice a middle-aged go getter who’s time-strapped but a spender to switch across for a higher limit and watch them deliver a decent stream of profit to you until they depart
The older folk have learnt the life lessons of being burnt by high interest so invariably pay the full balance on their cards by the due date and frugality remains a thing

How Do Credit Card Companies Make Money?

Credit card companies profit in a number of ways, depending on the type of company. See how various card companies make money.

www.fool.com

 

[SYD]

I know people think banks are only after CC interest but I’ve seen no evidence of this in rejection patterns. Sometimes you have to accept incompetence rather than malice.

You have no formal employment income, and the banks are too stupid (or just don’t care, more likely) to organise a different route to a credit card. There may even be laws making it harder for them.

I’ve not ever heard of anyone with lots of assets and high formal employment income being denied cards regularly, so clearly the “you won’t earn the bank interest” is a nonsense line. They earn money on interchange fees anyway.

I’ve always considered CC interest rates as “penalty” rates. They’re invariably well above regular unsecured / personal loan rates which to me implies the banks / CC providers really want you to pay in full each month? They’re making x% on EVERY transaction as core revenue.

The excessive rates offer the financial institution some limited protection from the credit risk for someone who only ever pays the min monthly amount as they spiral out of control with debt.