Access to Credit Cards for non working parents 19 October 2022 at 4:29PM in Credit cards 14 replies 700 views

Ebe_Scrooge

Sea_Shell said:

Deleted_User said:

The risk is for them. If they give you credit with no income and you run it up and put in a claim for hardship or unfair lending, they have to suck up and write off the money. Hence a risk.

But then they probably don't want me as a customer, as they won't earn a penny interest out of me!

Credit card companies make plenty of money from the fees they charge the retailer every time you use your card.  Sure, if you pay interest then that's a bonus for them - but mostly they're happy to rake in a steady revenue from merchant fees with none of the hassle or expense of having to chase you for non-payment

[Deleted User]

Sea_Shell said:

Deleted_User said:

The risk is for them. If they give you credit with no income and you run it up and put in a claim for hardship or unfair lending, they have to suck up and write off the money. Hence a risk.

But I only have "no income" on paper!!

I am of independent means😉

Hence, no risk.

Application forms don't take that into account.   But then they probably don't want me as a customer, as they won't earn a penny interest out of me!

100% risk as you have no income. Your "independent means" are not something they can verify, if you mean you have savings, you could spend all of them on a round the world trip and a new car - hence they would rate you as a massive risk of default to them

Sea_Shell

Deleted_User said:

Sea_Shell said:

Deleted_User said:

The risk is for them. If they give you credit with no income and you run it up and put in a claim for hardship or unfair lending, they have to suck up and write off the money. Hence a risk.

But I only have "no income" on paper!!

I am of independent means😉

Hence, no risk.

Application forms don't take that into account.   But then they probably don't want me as a customer, as they won't earn a penny interest out of me!

100% risk as you have no income. Your "independent means" are not something they can verify, if you mean you have savings, you could spend all of them on a round the world trip and a new car - hence they would rate you as a massive risk of default to them

Savings🤣🤣.   Yeah, a few nuts I could dig up! 😉

One can also lose a £50k a year job too.

[Deleted User]

Sea_Shell said:

Deleted_User said:

Sea_Shell said:

Deleted_User said:

The risk is for them. If they give you credit with no income and you run it up and put in a claim for hardship or unfair lending, they have to suck up and write off the money. Hence a risk.

But I only have "no income" on paper!!

I am of independent means😉

Hence, no risk.

Application forms don't take that into account.   But then they probably don't want me as a customer, as they won't earn a penny interest out of me!

100% risk as you have no income. Your "independent means" are not something they can verify, if you mean you have savings, you could spend all of them on a round the world trip and a new car - hence they would rate you as a massive risk of default to them

Savings🤣🤣.   Yeah, a few nuts I could dig up! 😉

One can also lose a £50k a year job too.

It is certainly possible to lose a job but it's far more reliable than savings, not least because you can always go and get another one, far more likely than someone who is retired going and getting a job if they have to use the savings. Savings are also more likely to be used in an emergency e.g. car breaks down, boiler blows up, dog needs surgery or indeed as I said, blown on a world tour or whatever so cannot be considered as reliable income. The fact is, lenders absolutely WILL NOT consider savings as income and continuing to labour the point is not going to change the way commercial lenders operate. 

As has been pointed out above, card issuers get plenty of money from merchant fees (typically 30-40% of income) when you spend, even if pay back in full every month