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...

 

[Flyfrequently]

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!

Post automatically merged: Jan 1, 2025

Following up on this, on Qantas website


Q.Has any one done this successfully?

 

[Flyfrequently]

As a retiree now, on the merry-go-round again with Amex to try to increase my credit limit - wish me luck

 

[SYD]

As a retiree now, on the merry-go-round again with Amex to try to increase my credit limit - wish me luck

Did you do it online?

 

[Flyfrequently]

Did you do it online?

Yes @SYD nearly an hour to find appropriate documents and upload them!

 

[Flyfrequently]

As a retiree now, on the merry-go-round again with Amex to try to increase my credit limit - wish me luck

Didn't take Amex long to knock me back again as I don't meet their "internal selection criteria ".....
Guess I pay on time, don't churn, have no debt, and am retired despite my income now is more than double it was when employed

 

[SYD]

Didn't take Amex long to knock me back again as I don't meet their "internal selection criteria ".....
Guess I pay on time, don't churn, have no debt, and am retired despite my income now is more than double it was when employed

Are you able to share what increase you asked for and existing limit? Or as a percentage increase?

 

[CaptJCool]

I wait with bated breath as to how far I get with applying for a new card

The post work plan has taken a battering what with Diners vanishing and the Qantas card expiring and the rigaromale of going onto Qantas pay (no thanks) at the lousy earn rate.

Left me high and dry with a long term Citi card (still has complimentary travel insurance but a low credit limit that doesn’t meet future proposed spending) and home loan supplied CBA CC which I use for a backup emergency…

Not especially been a CC Churn fan and I’m now on the cusp of going down that pathway…

Sa la vie
C’est La vie

 

[kpc]

Reading this thread, reinforces the importance of getting all the credit cards (and limits) I want before I retire....problem is cards which are good now, may not be later; and cards with better features come onto the market!

I find the easiest way now to apply for a credit card is to just state my income on my fornightly main job pay statement, ignoring income from all other sources...then I have just to submit / upload that pay statement

 

[Flyfrequently]

Are you able to share what increase you asked for and existing limit? Or as a percentage increase?

Current limit @SYD on Amex Ultimate is $10,800 - asked for $15k limit ( 40% I know) but the aim of the exercise is to be able to purchase international airfares.

I have Amex Elevate with an adequate limit, so will just use that.
Banking regulations now don't allow you to spread/swap across the cards.

 

[Flyfrequently]

Reading this thread, reinforces the importance of getting all the credit cards (and limits) I want before I retire....problem is cards which are good now, may not be later; and cards with better features come onto the market!

Agree @kpc
I did this prior to retirement, but as you say, what was good then, not so now - fees have all gone up over time.

 

[SYD]

Agree @kpc
I did this prior to retirement, but as you say, what was good then, not so now - fees have all gone up over time.

I fortunately have plenty of credit across several cards. The one I didn’t think to increase was 28° MC. I figured 10k was plenty for OS “spending money” but now that I’m travelling more, that limit seems low if putting hotels, car hire and some airfares (in foreign currency).