Getting a credit card in retirement

grannypep

https://forums.moneysavingexpert.com/discussion/comment/82131691#Comment_82131691

This. Also, have you got a joint current account with a well managed overdraft as this would help establish the ability of your wife to manage credit. Has she got savings in her name such as an Isa? Presumably she's on the electoral roll. Did you or have you still got a joint mortgage which would also establish her ability to manage credit. If she has a banking app, many of them now offer access to a credit score free of charge that would give her some indication of where she stands. I agree with a previous poster it may be worth her applying with her primary bank account supplier. Also, you have stated her income is a £5k pension but have you added in other income streams she may have such as rental income, interest, dividends etc. It's good to hear you are thinking of ensuring your wife will have access to funds if you pre-decease her. The bank generally pay "death bed expenses" such as funeral and certain other costs out of your account on production of an invoice without waiting for Confirmation (or it is called Probate in England and Wales). Most banks/building societies offer booklets or online information about what they can do following a bereavement. I hope you help your wife to sort out a credit card

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/82136706#Comment_82136706

Living in an overdraft, even if it's paid off monthly, is bad for your credit as it suggests you are living beyond your means

grannypep

I didn't suggest the poster or their wife "lived in their overdraft". I suggested having a well managed overdraft would be a positive thing for her credit file. This can mean having access to credit (the overdraft) but not mis-using it or not using it at all.

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/82137367#Comment_82137367

Any use of overdraft is a negative as it shows you are living beyond your means. There is no such thing as a well managed overdraft - you are spending the bank's money and in negative, even if you don't get charged, it indicates you can't manage money to algorithms.

Someone gets paid and clears their OD, they then spend the month in their OD again as they have no cash = system sees it as badly managed. If you don't need an OD you should not have one, many banks allow you to clear a payment that took you negative before a fixed time to avoid charges.

Building a credit history does not need an OD

redux

https://forums.moneysavingexpert.com/discussion/comment/82137367#Comment_82137367

What some of us may think of as well managed might not count.

If an overdraft is used only within the same day - which can be useful when doing a couple of transfers - that won't create any charges but also may not actually register as use

I learned this in a conversation a few years ago after they reduced the overdraft size, and was told I hadn't used it

grannypep

As a person who worked in banking for 40 years, I don't agree and believe you may have inadvertently mis-understood what I said. I did not speak about managing money to algorithims. I spoke about my knowledge of how credit scoring operates. You appear for some reason to think I have suggested people "live in their overdraft". I clarified this was not what I was suggesting. What I have said is that access to credit, while correctly managing the credit, helps your credit file. This is not living in your overdraft. Overdrafts are generally repayable on demand. What I have said is that access to credit helps your credit score if you use the credit appropriately and may not use it at all. I used to see people in my job who thought having no debts or access to credit would mean they were deemed to be a great credit risk, better than people who had available credit, when they wanted a mortgage or loan. This is not the case. Lenders cannot assess your capability to manage things like a loan to purchase a car (which you might wish to buy to facilitate driving to a new job) or a mortgage if you have never had any credit you've managed well. I have in no way suggested people live constantly in their overdraft. I've said access to credit is not a bad thing in itself and can build your credit score when managed well. I personally have access to credit. I never pay fees or interest. My children were advised by me to get access to credit to build their credit score by having it and managing it well. They have mortgages now and were assisted by this fact. I reiterate in no way have I said people should live in their overdraft. I don't think I could have made that much clearer. Regards