Reward credit cards

[KingMota]

I am retired, living off investments (about $2.3 mil NW) with no W2 income. I am 66 and not planning on starting SS until 69 1/2. If you apply for a credit card, what do you list for income?

Back story:
I got enamored with reward CC last year and got an AMEX card which pays 6% on groceries and streaming services. The groceries cap at $6,000 spent and we maxed that. Of course we pay off the CC each month.

Anyway, I wanted a card that paid good rewards on restaurants and better than 1% on groceries (for the > $6,000 overflow) and about two weeks ago I was denied on my recent application for a Capital One Savor. It said I had too many inquiries. I did two cards last year. My credit score was about 769.

I tried today on under my wife's name (didn't even list myself) and she was denied. I have not received the reason yet, but her credit score on Experian was 845.

 

[MichaelB]

For income I list my gross income from the previous year income tax filing.

 

[audreyh1]

for income i list my gross income from the previous year income tax filing.

+1

 

[KingMota]

That may be why my wife got denied? I have been keeping reportable income low (living more off non IRA accounts) because she is getting ACA supplement, so gross income was very low. I put $75,000 on the application, but it was lower than that on my tax return.

 

[audreyh1]

We enjoy the Costco Visa for their 3% cash rewards on dining, hotels and travel. Also 2% at Costco and 4% gas stations/EV charging. But unless you are a Costco member this will not be an option.

 

[Aerides]

It said I had too many inquiries. I did two cards last year. My credit score was about 769.

I believe inquiries has a 2 year look back. I typically enter an income closer to reality than my tax returns (ie, non-taxable income as well), because there is never any documentation required.

 

[audreyh1]

You most definitely should include non-taxable income. It also appears on your tax return if you ever had to show something.

I recently asked for an Amazon Store Card credit increase as we were over the limit. Fortunately they kept letting us buy stuff - nice. They were quite specific - they asked for taxable income less deductions plus any non-taxable income. Never seen that before. Synchrony issues the Amazon Prime store card.

 

[Sojourner]

I generally just put in my gross annual investment income, minus any "lumpy" capital gains or distributions. I have never had a CC application be denied... knock on wood.

You should consider getting a simple ("no categories") 2% cash back CC like the Fidelity Visa or the Citi Double Cash Mastercard. We use our Citi and Fidelity cards everywhere without worrying about spending in specific categories.

OTOH, if you are into rewards, look into cards that have big sign-up bonuses. I think Chase has some good deals right now, like the Ink Business Unlimited card which will give you $900 in cash back rewards after spending $6,000 in the first three months.
https://creditcards.chase.com/business-credit-cards/ink/unlimited

 

[foxcreek9]

I put what I spend as income, unless you plan on committing fraud, it really doesn't matter.

 

[Sunset]

For CC applications I just put $115,000. It's enough to get a good sized spending limit.

It's totally unrelated to what I spend or what I earn before or after taxes, but NOBODY has ever demanded I prove my income.

I don't think it really matters too much , otherwise when a working person is laid off, they should update to say their income is now $0 going forward, but nobody does that and the credit card companies know people get laid off or quit jobs and have $0 income at that point.

 

[audreyh1]

If you put a really high number as your income you start getting blank checks with credit offers in the mail.

 

[Sunset]

Ever since I froze my credit reports, I've noticed my credit card offers by mail have dropped off to nearly zero.
Only companies like airlines, and my banks still send me offers.

Not that it matters, offers can be found if/when I want a new credit card.

I have about 8 right now.

 

[audreyh1]

We have so many CCs. We’ve let several close due to lack of use. Got rid of a few others directly. Still have lots. So I’m hoping we don’t need another one! It’s a much bigger hassle with frozen credit.

 

[PaunchyPirate]

I just make up a number. Usually I use $90k. I’ve been working my way thru several credit card promotions over the last few years.

 

[W2R]

Yes, I have the least credit card experience of anyone here. LOL

For income I list my gross income from the previous year income tax filing.

+1

Actually, I only have one credit card (and a debit Mastercard from my bank that came with my checking account). For many years I purposely didn't have credit cards, because I was so determined to LBYM and I felt credit cards were "the devil", so to speak. But the members here finally persuaded me to get at least one credit card, so a few years after I retired (maybe five or ten years ago?) I got the Amazon Visa card. That is still my only credit card.

IIRC, all I gave them was my AGI from the prior income tax filing. They approved the card within about 5-10 minutes after I submitted the info to them online.

I love the rewards, which I spend on Amazon where I do most of my shopping anyway. I pay the card off in full every month, automatically.

 

[erkevin]

When your credit is frozen and you want to apply for a new card, Google "what credit reporting agency does xxx Bank use for credit card applications?". You will find that most banks only use one or two of the three agencies. That way, you dont have to thaw all three of your accounts.

 

[braumeister]

When your credit is frozen and you want to apply for a new card, Google "what credit reporting agency does xxx Bank use for credit card applications?". You will find that most banks only use one or two of the three agencies. That way, you dont have to thaw all three of your accounts.

I've always waited for a denial, because they always give you a phone number to call if you have a question. I call and ask which agency they use, and they have always told me right away. I unfroze that one, reapplied, got the card, and immediately froze it back again.

Interestingly, I applied for a new card yesterday, and within a few seconds of clicking the "Apply Now" button, I got a screen telling me which one to unfreeze. Did that, got approved, and froze it back, all within five minutes.

 

[audreyh1]

Interestingly, I applied for a new card yesterday, and within a few seconds of clicking the "Apply Now" button, I got a screen telling me which one to unfreeze. Did that, got approved, and froze it back, all within five minutes.

Wow!

Freezing my credit has been a good thing in that it’s kept me taking on new cards/new institutions but I’m still able to add accounts with existing ones as needed.

 

[xlf11]

You could put your gross income plus some nontaxable such as LTCG etc. as some CC application specifically asks for what portion of your income is nontaxable.

 

[audreyh1]

LTCGs are taxed. It’s just that the tax rate up to a certain income level is 0%.

It’s certainly included in the amount that goes to compute taxes.

 

[xlf11]

LTCGs are taxed. It’s just that the tax rate up to a certain income level is 0%.

It’s certainly included in the amount that goes to compute taxes.

That's right and I was trying to say to include anything not appeared on tax return, but realized he is not on SSB yet. Good catch!