CC for retiree

tgon

I'm looking for a new CC to replace my Tesco Clubcard CC for two reasons: 1. I don't shop at Tesco anymore, and 2. I intend to travel abroad a number of times next year. I always pay the full amount off each month. I've read the MSE guides on travel cards to minimise costs on cash advances and purchases.

However, I'm eary retired and drawing from private pensions and have an excellent credit rating. My problem is that as I can't state an "income" per se (as I only draw down what I need), the MSE CC soft search produces very few choices and application probability outcomes. Not sure what to do to. Advice welcome.

PeacefulWaters

Surely your annual drawdown is your annual income? Divide by 12 for monthly.

Retired with income and address stability is an appealing market for many card issuers.

How much do you think you'll spend on the card each year?

Perhaps Halifax Clarity for overseas use.

And a points card for day to day use.
http://www.headforpoints.com/2016/12/04/what-is-your-credit-card-end-game-strategy-2/

Superscrooge

Halifax have a CC eligibility checker on their website which only makes a 'soft search' on your credit file so won't affect your credit file.

Enter the income from your annual drawdown and see what chance it gives for Halifax Clarity?

http://www.halifax.co.uk/creditcards/eligibility-checker/

Anthorn

tgon wrote: »

I'm looking for a new CC to replace my Tesco Clubcard CC for two reasons: 1. I don't shop at Tesco anymore, and 2. I intend to travel abroad a number of times next year. I always pay the full amount off each month. I've read the MSE guides on travel cards to minimise costs on cash advances and purchases.

However, I'm eary retired and drawing from private pensions and have an excellent credit rating. My problem is that as I can't state an "income" per se (as I only draw down what I need), the MSE CC soft search produces very few choices and application probability outcomes. Not sure what to do to. Advice welcome.

I'm retired, actually 66 years old this month. It's difficult. If you had a regular pension such as state pension as I do, that would be your income.

With drawdown the total amount over a month is your monthly income. Then multiply by 12 for your annual income. With credit applications it helps if you have a documented history to prove the drawdown/income. You can't just say you have an amount of income if you have no proof. That's if they ask for proof.

It's significant that drawdown from a pension pot is generally called an "income drawdown".

Doesn't your pension provider provide offers such as credit cards?

I agree with Halifax Clarity but I'll be different and suggest Virgin Money Card Checker in the Cards section on the Virgin Money site which will tell you if you qualify for a card. If you qualify you choose the type of card and then apply and you will be told there and then if you're approved.
http://uk.virginmoney.com/virgin/rvbeta/

I suggest a Money Transfer card so you can transfer money to your current account and from there to a travel card.

Lastly, I like to be honest, sometimes quite brutally so: I think in your situation CC lenders may prove to be ball-breakers and if you get a card your credit limit may be very low.

tgon

Ahh, the things I shoulda thought through before I took the money and ran ;-/

I can prove "income" through bank transfers from ISA's, SIPP draw downs, Dividends, etc. I'm new at retiring so still not used to income as something other than getting up at 6am and grafting for a pay packet. I expect to spend about 10k/yr on my travels.

But point taken and I shall apply the maths accordingly. My cost of living income is far less an income than my profitable salaried working life which worried me on these applications. I'll also look at the cards mentioned in your replies. Thank you.

Anthorn

As I said that's if they ask for proof. Consider my own situation. I worked all my life since I had a paper round at the age of 14. Then in 2008 when I was 58 years old my employer went to the wall and so did I during the banking crisis. It was a very long road back from being a credit untouchable.

Fast forward to now. I apply, state my employment as "Retired", insert my total state pension as my pre-tax income and I get the card. I'm never asked for proof of anything. I can prove extra income in the form of rental income but I don't bother. Probably the only thing I have which works in my favour is a prime credit history. Natwest described me as "normal" lol. Now previously I would have had to submit pay slips, employer's name and address and a full income and expenditure statement.

So I think that having to rebuild my credit history and becoming retired has worked in my favour. I only wish it happened earlier in my life.

As I always say, if in doubt apply!

eDicky

I don't think you will have a problem applying for a Halifax Clarity card, as retired with a pension income. They accepted me last year, first CC I ever had and not even on electoral roll, retired with my estimation of income and no proof required. Limit was only £600 at first but increased after 6 months to 3k (they asked me how much I wanted). Don't travel with only a single source of funds, Aqua Reward will give you fee-free purchases and 0.5% cashback, and/or a suitable prepaid card, for backup.