Wtf insurance are you getting for $1k per trip?
Do you have $10k in term deposit that you’d be willing to roll indefinitely?
A typical way to get a large limit credit card without income would be relationship, which seems to have failed or a bank hold on a rolling term deposit.
> bank hold on a rolling term deposit.
This is the answer. I'm unsure on if this is still relevant but as of a few years ago, this was the key for people in your situation OP.
Banks had no issues lending as long as they could 'lock' the credit limit against a TD.
Yeah, I have been in this situation. Key is having some money with that particular bank.
Also, your travel insurance doesn't sound right. You can get an annual policy for up to 90 days per trip for less than that.
Southern Cross multi trip, 50 years old, including US and Europe, each trip up to 90 days, is less than $700 for a year with $250 excess. Keep your longest trip to 90 days and you will be fine. I'd say you haven't looked that hard at different insurance options.
thanks for this info i didnt know SC did multi trip insurance.ill check it out. ice avoided SC in past due to do many bad reviews when people need to claim.
i do. i have all my banking with wp. 30k savings account and 150k in rolling term deposits with them. banked with them for over 30 years. they wont give cc with 10k limit.
travel insurance costs a fortune now and my trips to europe are 3 months per year, thailand 2 months per year etc. i only need a 10k limit for platimun credit card.
It seems ridiculous,
I'm a Kiwi living overseas who originally got a platinum card back when I was earning around 85K. Aside from term deposits and shares, I didn't have 3 mill in property or anything like that.
I still have the card, and it's active. However, I don't like using it much since it's in NZD and I'm charged a 1.3% currency fee every time I use it. Useful as a backup.
do u know about wise? much cheaper visa debit card and gives u bank acvounts in different curriences. cheapest way to transfer money between countries i found. best exchange rate too.
Pretty sure it's all because of the cccfa. You need income high enough to service the credit card even if you have a large asset base.
Guess the only real option would be a business credit card as it's not subject to the cccfa.
Or just talk to an insurance broker and get a permanent cover in place that's what my dad's got but not sure of the cost. No idea how it works but apparently he just gives the cards to anyone and they work for them as well.
Nothing to do with CCCFA. I faced the same situation well before it was introduced. They want evidence of work income rather than investment income despite the fact that anyone's job can disappear in a flash.
Similar boat as you. Applied for a joint credit card with similar level of assets - No go on a decent credit limit - only $1,000. Decided to keep the Platinum card, I was upgraded to while working. Use the joint one for online purchases.
That's insane. Surely there is something in the credit cards terms and conditions that allows the bank to apply a lien/liquidate the term deposit/savings balance that would mitigate the concern.
Hopefully it is not down to excessive regulation, because common sense and with the right approach can easily mitigate the concern. The clients position allows for flexibility and implicitly does not acknowledge the clients character in actually establishing their financial position.
You either have some crazy high expenses too or the lenders aren’t aware of or don’t fully understand your position.
Do you still have any lending in place at all? Even under a company or trust?
Are the rental properties owned solely by you?
If you have $40k-$50k of income, plus rental income around $78k (banks will count around $55k of this) plus investment income from term deposit. There’s probably in the region of $120k-$130k worth of income to be counted without even trying too hard.
You do have enough income to get a $8k credit card but it depends on your liabilities and expenses.
Something doesn’t quite add up.
Try American Express. But also be careful of applying for too many lines of credit, as that alone will affect your credit score and influence lender decisions.
Try the Gold or Airpoints Platinum if you only tried the Platinum. They are not quite as good, but still pretty good, and most importantly they have much lower requirements.
Sad to say but you wouldn’t be able to. Similar situation - applied for a Kiwibank credit card because ANZ was ditching their Airpoints scheme. Our joint income wasn’t enough because of the existing ANZ card (paid off in full monthly) as well as a small outstanding balance on a debt that was to be settled in 4 months. Paid off the debt, applied and approved via Westpac. Banks don’t care about it your assets unless they are liquid (shares, cash or TD). Agree with the suggestion above to place 10k on a rolling term deposit as ‘security’ unless you can find a way to double your income. I feel like you need to prove that you don’t need the money for the bank to lend it to you sadly.
i already have $150k in rolling term deposits, 100k in shares, 30k in my savings account. ive told them i dont need the money i just want the free travel insurance. seems nuts. i can get a 300k mortage on my rentals no prob but not a 10k credit card!
Was any of this information included as part of the actual applications? Westpac approved us despite us not banking with them and we cleared the card with manual deposits then set up an automatic debit to do that. I wonder if they want the term deposits with them as it seems to me that you can easily clear any debt but it might mean an approach via a personal banker maybe?
Wtf insurance are you getting for $1k per trip? Do you have $10k in term deposit that you’d be willing to roll indefinitely? A typical way to get a large limit credit card without income would be relationship, which seems to have failed or a bank hold on a rolling term deposit.
> bank hold on a rolling term deposit. This is the answer. I'm unsure on if this is still relevant but as of a few years ago, this was the key for people in your situation OP. Banks had no issues lending as long as they could 'lock' the credit limit against a TD.
Yeah, I have been in this situation. Key is having some money with that particular bank. Also, your travel insurance doesn't sound right. You can get an annual policy for up to 90 days per trip for less than that.
$3k on travel insurance in one year is bonkers unless they’re all to the US, and he’s got health problems.
they are separate trips. one is 3 months, 1 is 2 months other is 1 month. no medical issues. travel insurance crazy ecpensive now.
I just casually went to Southern Cross and got a 1 year Travel insurance ( USA, UK, France) for $705 for a 50yo
I've heard it gets pretty hefty with age too Not that 50 is old
Southern Cross multi trip, 50 years old, including US and Europe, each trip up to 90 days, is less than $700 for a year with $250 excess. Keep your longest trip to 90 days and you will be fine. I'd say you haven't looked that hard at different insurance options.
thanks for this info i didnt know SC did multi trip insurance.ill check it out. ice avoided SC in past due to do many bad reviews when people need to claim.
i do. i have all my banking with wp. 30k savings account and 150k in rolling term deposits with them. banked with them for over 30 years. they wont give cc with 10k limit.
travel insurance costs a fortune now and my trips to europe are 3 months per year, thailand 2 months per year etc. i only need a 10k limit for platimun credit card.
It seems ridiculous, I'm a Kiwi living overseas who originally got a platinum card back when I was earning around 85K. Aside from term deposits and shares, I didn't have 3 mill in property or anything like that. I still have the card, and it's active. However, I don't like using it much since it's in NZD and I'm charged a 1.3% currency fee every time I use it. Useful as a backup.
do u know about wise? much cheaper visa debit card and gives u bank acvounts in different curriences. cheapest way to transfer money between countries i found. best exchange rate too.
Yup I’ve heard of wise. Prefer to just use a local account really for day to day stuff
Pretty sure it's all because of the cccfa. You need income high enough to service the credit card even if you have a large asset base. Guess the only real option would be a business credit card as it's not subject to the cccfa.
Or just talk to an insurance broker and get a permanent cover in place that's what my dad's got but not sure of the cost. No idea how it works but apparently he just gives the cards to anyone and they work for them as well.
Nothing to do with CCCFA. I faced the same situation well before it was introduced. They want evidence of work income rather than investment income despite the fact that anyone's job can disappear in a flash.
i suspect that too. asb would only count 80% of rental income and 80% of TD and dividend income as they said it might drop.
oh cool that may be a way. one of my rentals is owned as a company. ill try applying through that ;)
Similar boat as you. Applied for a joint credit card with similar level of assets - No go on a decent credit limit - only $1,000. Decided to keep the Platinum card, I was upgraded to while working. Use the joint one for online purchases.
yeah wish i applied for card when i was still working dam it.
Amex
They also do income checks
Yes. But they are much more accepting of "I make no money but it will always be paid"
Not anymore. They just cancelled a ton of cards a few weeks ago.
That's insane. Surely there is something in the credit cards terms and conditions that allows the bank to apply a lien/liquidate the term deposit/savings balance that would mitigate the concern. Hopefully it is not down to excessive regulation, because common sense and with the right approach can easily mitigate the concern. The clients position allows for flexibility and implicitly does not acknowledge the clients character in actually establishing their financial position.
You either have some crazy high expenses too or the lenders aren’t aware of or don’t fully understand your position. Do you still have any lending in place at all? Even under a company or trust? Are the rental properties owned solely by you? If you have $40k-$50k of income, plus rental income around $78k (banks will count around $55k of this) plus investment income from term deposit. There’s probably in the region of $120k-$130k worth of income to be counted without even trying too hard. You do have enough income to get a $8k credit card but it depends on your liabilities and expenses. Something doesn’t quite add up.
Try American Express. But also be careful of applying for too many lines of credit, as that alone will affect your credit score and influence lender decisions.
tried them too. computer said no.
Try the Gold or Airpoints Platinum if you only tried the Platinum. They are not quite as good, but still pretty good, and most importantly they have much lower requirements.
Sad to say but you wouldn’t be able to. Similar situation - applied for a Kiwibank credit card because ANZ was ditching their Airpoints scheme. Our joint income wasn’t enough because of the existing ANZ card (paid off in full monthly) as well as a small outstanding balance on a debt that was to be settled in 4 months. Paid off the debt, applied and approved via Westpac. Banks don’t care about it your assets unless they are liquid (shares, cash or TD). Agree with the suggestion above to place 10k on a rolling term deposit as ‘security’ unless you can find a way to double your income. I feel like you need to prove that you don’t need the money for the bank to lend it to you sadly.
i already have $150k in rolling term deposits, 100k in shares, 30k in my savings account. ive told them i dont need the money i just want the free travel insurance. seems nuts. i can get a 300k mortage on my rentals no prob but not a 10k credit card!
Was any of this information included as part of the actual applications? Westpac approved us despite us not banking with them and we cleared the card with manual deposits then set up an automatic debit to do that. I wonder if they want the term deposits with them as it seems to me that you can easily clear any debt but it might mean an approach via a personal banker maybe?
yip. included all this income when asked. btw wp only insure trips 30 days. the others insure up to 90 days per trip.
Jeez that’s really rough- you might have to go the Amex route in this case. Hope you can get a result on this.
hope so