Credit card options for retirees

[jellybelly]

The last time I applied for a credit card I was only asked to list income and expenses, not assets. We choose to keep out home loan open with a full offset account, so technically it does not cost us anything, but it is still classified as an expense. I remember asking why the full loan offset account was not taken into account and was told ‘oh that’s because you could spend that money’

 

[Oslo]

Apparently Coles MC is generous. Noel Whittaker wrote an article (possibly paywalled?)…

Out of credit? The solution for retirees who want a card

Time and time again retired Australians tell me they are unable to get a credit card of their own. But there may be a solution.

www.smh.com.au

Double benefit, the Coles MC is Int Tx Fee free and pays FlyBuys (so some point earn capacity).

Sadly, Coles MC started charging Int Tx fees in July.

 

[SYD]

Sadly, Coles MC started charging Int Tx fees in July.

Yes, discussed in another thread not long ago.

and welcome to AFF @Oslo

 

[Scru]

Many of the more expensive cards i.e. AMEX Platinum offer travel insurance but only up to a certain age. Once this is no longer "part of the package", which card offers the best value in terms of other benefits including FF points?

Scru

 

[ramboflyer]

Post Covid I thought we wouldn't do any more overseas trips and "wasted" many Qantas and Velocity points the last 2 years on car hire, accommodation, a tablet and a mattress!

I'm now having second thoughts and want to go to Europe next year and trying to build those points up again with the big sign on bonuses.

I'm retired 10 years and have 2 approvals in 23/24 - the Velocity High Flyer card (80,000 bonus points) and the Citi Premier (110,000 sign on Velocity points (through Pointhacks)). Both cards are connected to NAB.

I don't have a big income but can just reach the minimum required where its stated. I find talking to someone over the phone helps. Sometimes they can be flexible. Its probably easier to be approved when there is no minimum income stated but don't get put off if you don't quite reach it.
I have an excellent credit score which I can see that they check.

I have been knocked back a few times at other banks so I think it does depend on the bank.

 

[BJReplay]

I have been knocked back a few times at other banks so I think it does depend on the bank.

Having been knocked back while employed on $stupid money$ by which-bank, I'm now getting approved by the same bank while unemployed. Banks are capricious beasts, so if you have a good credit rating, occasionally asking for a new credit card when juicy sign-on bonuses come along can't hurt.

 

[Pushka]

The last time I applied for a credit card I was only asked to list income and expenses, not assets. We choose to keep out home loan open with a full offset account, so technically it does not cost us anything, but it is still classified as an expense. I remember asking why the full loan offset account was not taken into account and was told ‘oh that’s because you could spend that money’

They usually ignore assets and just income is important.

We have done exactly the same as you have with the home loan. It's fully offset and could be paid off immediately. And each month we deposit into the home loan from the offset account, the same amount that NAB still requires us to pay based on interest even though there's no interest payable.

 

[burmans]

Post Covid I thought we wouldn't do any more overseas trips and "wasted" many Qantas and Velocity points the last 2 years on car hire, accommodation, a tablet and a mattress!

I'm now having second thoughts and want to go to Europe next year and trying to build those points up again with the big sign on bonuses.

I'm retired 10 years and have 2 approvals in 23/24 - the Velocity High Flyer card (80,000 bonus points) and the Citi Premier (110,000 sign on Velocity points (through Pointhacks)). Both cards are connected to NAB.

I don't have a big income but can just reach the minimum required where its stated. I find talking to someone over the phone helps. Sometimes they can be flexible. Its probably easier to be approved when there is no minimum income stated but don't get put off if you don't quite reach it.
I have an excellent credit score which I can see that they check.

I have been knocked back a few times at other banks so I think it does depend on the bank.

Citibank and the Citi white labelled cars (Velocity Flyer/High Flyer and the Qantas card) do seem easier to get when retired.

Post automatically merged: Sep 19, 2024

They usually ignore assets and just income is important.

Indeed they do, because that’s what the Responsible Lending laws require them to do.

 

[SYD]

Indeed they do, because that’s what the Responsible Lending laws require them to do.

and this issue is the unintended consequence of stopping banks putting CCs in packets of Weet-Bix (to quote someone at the time).

 

[burmans]

and this issue is the unintended consequence of stopping banks putting CCs in packets of Weet-Bix (to quote someone at the time).

Well, given irresponsible lending was essentially the cause of the GFC I’m not really against responsible lending in principle but agree that sometimes sloppy drafting of laws causes some interesting consequences.

 

[tinkybelle]

of course they discriminate against older persons I had a client with 2 million in super( and a home with 9 million) drawing 200k a year. he cancelled his biz plat amex and asked for an explorer they gave him 8k limit he tried for 2 years to get the limit up as one biz class ticket was more than that , then eventually decided to use his 35k visa instead.
another client who owns a 30 mil house got a 9k limit after giving up his plat biz.
needles to say I have always told clients to keep their plat cards .
Im not game to give mine up,.

 

[Flyfrequently]

I am retired now and in the process of upping my credit limit with Amex, as years ago I split the 35k limit across 2 cards (25k on one and 10k on the other)

Apparently now you can't move/consolidate limits so going through the hoops to increase it.
Let's see how I go.....

 

[Flyfrequently]

I am retired now and in the process of upping my credit limit with Amex, as years ago I split the 35k limit across 2 cards (25k on one and 10k on the other)

Apparently now you can't move/consolidate limits so going through the hoops to increase it.
Let's see how I go.....

Amex knocked me back.....

 

[SYD]

Amex knocked me back.....

As a new customer? Another card or credit limit increase?

I commented here or another thread a while back that for “churners” to consider hanging into an AMEX as they approach their useful churning life. I found it very easy to get a Business card off the back of my long standing with them - even though I was technically unemployed while I set up my own company. The banks wanted 3 yrs trading history before considering a new card application….

 

[Flyfrequently]

As a new customer? Another card or credit limit increase?

I commented here or another thread a while back that for “churners” to consider hanging into an AMEX as they approach their useful churning life. I found it very easy to get a Business card off the back of my long standing with them - even though I was technically unemployed while I set up my own company. The banks wanted 3 yrs trading history before considering a new card application….

I have been with Amex for over 10 years.
With Amex have Discovery (no fee) and Elevate (from a Westpac card/ merger years ago)
$35k credit limit spread over the 2 accounts.
All I want to do is consolidate so that if I want to purchase ridiculously priced F tkts I can do so @SYD.
Banking regs have changed and I accept that now I cannot swap amounts over from one card to the other as was possible awhile back.

WCMO #1:
I/we have no debts, annual spend considered by me as"frugal"! , assets that would make Flyfrequently's offspring eyes water and my retiree income from allocated pension more than what offspring's income is, but they easily get given credit increases.

WCMO #2: Apparently you cannot speak to a human to get this reviewed.
Guess paying off cc in full every month isn't appealing either - never paid a cent in interest.....
If only common sense prevailed

 

[SYD]

I have been with Amex for over 10 years.
With Amex have Discovery (no fee) and Elevate (from a Westpac card/ merger years ago)
$35k credit limit spread over the 2 accounts.
All I want to do is consolidate so that if I want to purchase ridiculously priced F tkts I can do so @SYD.
Banking regs have changed and I accept that now I cannot swap amounts over from one card to the other as was possible awhile back.

WCMO #1:
I/we have no debts, annual spend considered by me as"frugal"! , assets that would make Flyfrequently's offspring eyes water and my retiree income from allocated pension more than what offspring's income is, but they easily get given credit increases.

WCMO #2: Apparently you cannot speak to a human to get this reviewed.
Guess paying off cc in full every month isn't appealing either - never paid a cent in interest.....
If only common sense prevailed

How did you go about trying to consolidate?

I know it’s easy to reduce a credit limit on a card (pretty much immediate) but increasing would presumably need to go through the mill. Of course, you don’t want to reduce one until you get the increase on the other…..

 

[Flyfrequently]

did you go about trying to consolidate?

I know it’s easy to reduce a credit limit on a card (pretty much immediate) but increasing would presumably need to go through the mill.

Spoke to Amex, said unable to consolidate due to banking regulation changes - needed to apply for "increase" -she just said use the two cards to split payments if exceeding limit.

Went through their hoops, and the stupid part of all of this is, I am in a way better financial position now than when employed!

 

[Askance]

Spoke to Amex, said unable to consolidate due to banking regulation changes - needed to apply for "increase" -she just said use the two cards to split payments if exceeding limit.

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.

 

[andye]

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

 

[BJReplay]

Splitting payment across two cards isnt an option with SQ

This is where having a TA that you've used in the past who is willing and able to book fares for you can be useful (if you're keen on putting those fares on a points earning card for points or included TI).

I've found flights that I want that were possible to book (but would have been tricky, if not impossible for me to do easily on a single PNR). I called up my TA, asked if they were ready to do some work with me on a booking - they asked if they could call back later that day, or it was time critical.

Later that day (it wasn't time critical in my estimation), they had come up with a better set of flights than I'd found for $100 less (2% of the total fare I'd found) on Europe J return tickets with a stopover in Japan, booked them on single PNRs, and I could put the entire fare on my credit card via their payment gateway at 0.7% surcharge in multiple payments. Tickets were held for me from the moment we got off the phone. I could pay, top up CC, pay, top up CC, pay, top up CC.