Applying for a Credit Card in ER

[Oliver]

Given the amount of international travel I will be doing, I am considering opening up a Capital One credit card (no foreign exchange fee). I am a bit concerned about applying in early retirement. Any advice?

Thanks

Oliver

PS I am also looking at a new internet bank solution. I am looking at Bank of Internet USA, Everbank and HSBC. I was with Netbank. Now that ING has taken over the deposits, I expect my international ATM transactions will be subject to a 3% fee.

 

[Khan]

I applied for a credit card in March and there was no problem; I live on a small pension.

 

[Achiever51]

If you are wondering how to describe your employment status -- or lack thereof -- you might check out this thread on "am I self employed, unemployed or retired":

http://www.early-retirement.org/forums/f29/am-i-self-employed-un-employed-retired-28299.html

(I remember it well because one poster, KCowan?, said he referred to himself as a "private client portfolio manager" and for income indicated the increase in value of his portfolio for the past year. Brilliant! I've used this myself since...and it works.)

 

[REWahoo]

Oliver, if the CC issuers limited their product to only those who could repay, they'd go out of business! You'll have no problem getting a new card.

 

[maddythebeagle]

Indicating "retired" will do fine...and indicate income that you can document....although most will not ask for documentation....few like amex will do only if they find something fishy and do a financial review, which would include letting them look at your tax returns...

 

[audreyh1]

Hmmmm. We opened a Bank of America account a few years after we had been retired and got their Visa. I don't remember there being any problems. We almost ALWAYS simply state "retired" when required to give employment status. I'm still in my 40s. It has not caused problems.

LOL - at the time I was more concerned about establishing the new bank account before my physical address changed (became an RV fulltimer), so I didn't even worry about the "retired" thing.

Audrey

 

[Dawg52]

I originally had problems with PenFed. They wanted copies of tax returns and supporting documents. If I had applied a few months before retirement, I'm sure there would have been no problem.

To make a long story short, I told them to shove it. Later when checking my cd balance with them, a message appeared on their website that I was approved for a credit card(3 times the limit I asked for) and auto loans if I wanted it. Go figure.

Good luck.

 

[TexasGal]

I guess I just never thought about it being a problem. I am newly retired but my credit is excellent and my FICO is 832. It never occurred to me that anyone would turn me down. Guess I will find out as time goes by.

 

[travelover]

Occasionally you read about credit cards being issued to dogs and dead people, so I'd think "retired" would squeeze by.

 

[W2R]

Occasionally you read about credit cards being issued to dogs and dead people, so I'd think "retired" would squeeze by.

I was turned down again and again when applying for a credit card during the first year or two after my divorce, so I guess divorce is worse than being a dog or dead? . At the same time, my nineteen year old college student daughter who couldn't even balance her checking account was getting offers in the mail, daily.

I tried for a Sears card, and even tried to finance a $350 mattress at a bedding store. No luck. So, I got mad and stopped applying.

Four years after my divorce I had accumulated enough for 20% down on my house, and I had no problem at all getting a mortgage. That fixed my credit quickly, but now I don't care because I have no desire for a credit card any more. They can shove them where the sun don't shine (or whatever that expression is).

 

[free4now]

Yep, no prob getting a credit card in FIREhood for me either. On one application I said retired. On an application for a business card I was completely truthful and reported that my side business earned me only a few hundred bucks over the last year, and it was still approved.