No income, Excellent credit, long history....which card?

For just about anything you want to get off your chest about credit cards.
11 posts
Anonymouse
Green Member
Green Member
 
Posts: 6
Joined: Tue Feb 24, 2015 4:20 pm
Location: USA

No income, Excellent credit, long history....which card?

Postby Anonymouse » Tue Feb 24, 2015 4:31 pm

I'm looking to open one or perhaps two new credit cards in my name.

I currently have two that are joint with my wife (~25k credit, nearly all unused), and last I checked an excellent credit score, 750 perhaps. Long history, including owning a house for a decade.

I'm a little young for normal retirement, but I've been living off my investments/savings for years. They haven't shown taxable income recently, so I have NO INCOME. I'm good at living pretty cheap, and have enough money to live on for years.

I'm aware that inquiries will impact my good credit....so I want to pick a card or two to apply for that I'm likely to get, with a reasonable credit line ($5~10k)

My wife's history is very similar, and she just got a Chase/SouthWest card approved.

One I'm thinking of getting is the Citi Double Cash Card
I like the rewards, I'm not planning to carry a balance, so APR isn't a big issue for me, and I'd rather avoid or minimize an annual fee.

Does this seem like a good choice for me?


User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3757
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Tue Feb 24, 2015 6:41 pm

American Express asks about investment assets during the application, so you might look at cards from them.

I don't know about Citi.

In my experience, Barclaycard, Chase, and Discover are more interested in income than assets.

Where do you spend most of your money? Grocery stores? Travel? Eating out? Other shopping? Do you want travel rewards or cash back?
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

Anonymouse
Green Member
Green Member
 
Posts: 6
Joined: Tue Feb 24, 2015 4:20 pm
Location: USA

Postby Anonymouse » Tue Feb 24, 2015 7:14 pm

I don't travel consistently enough to put travel rewards to good use--I like cash better.

Honestly...if my credit union I have a joint account with hadn't told me that I'd probably be denied without income, I'd go with them--no rewards, but excellent customer service, and no feeling that they are trying to squeeze fees out of me either.

Spending will be mostly groceries + misc shopping that is unlikely to be featured in any reward program, with occasional travel and some eating out.

I would rather have a MC/Visa than an AmEx, or especially Discover; I don't want to be the person who has to ask if they take that card every time I'm someplace....

whit
Centurion Member
Centurion Member
 
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Tue Feb 24, 2015 7:40 pm

It's a bit harder when you're relying on both income from investments and dipping into your savings. Investment income (dividends) can be counted -- savings would only be looked at depending on the discretion of the issuer -- esp with the way savings accounts earn apy these days

If your savings is with a particular institution that offers credit card, I would try them first because they may be able to take a second look despite the income situation

Anonymouse
Green Member
Green Member
 
Posts: 6
Joined: Tue Feb 24, 2015 4:20 pm
Location: USA

Postby Anonymouse » Tue Feb 24, 2015 8:27 pm

My "income from investments" doesn't look good enough to help me at all. Honestly, I'm more like living on savings, which should last over a decade at my burn rate....longer if I seek out income, or improve my investing.

Here's a better question....

Which banks/cards are issued based on credit score / credit report and don't worry income (or lack of it)?

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3757
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Tue Feb 24, 2015 10:40 pm

I'm not aware of any issuers that will completely disregard income on an unsecured card and give you a high limit. Some lenders might give a low unsecured limit to someone with savings but negligible income.

Perhaps your wife could add you as an authorized user on the Southwest card? She's already paying the annual fee, and you'd be earning some rewards, even though they aren't as convenient as cash.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

Anonymouse
Green Member
Green Member
 
Posts: 6
Joined: Tue Feb 24, 2015 4:20 pm
Location: USA

Postby Anonymouse » Thu Feb 26, 2015 6:20 am

Double-Nope on getting on my wife's card! I'm semi-separated from my wife now (it is complicated!) and my whole reason for wanting a new card is to have some credit that is solely in my name.

I'm not sure if any legal separation/divorce filings will change my credit status....and I want to do this before it matters for other reasons anyway.

I like to put monthly expenses on my card and pay in full. When we were together, that was $1000~$3000, higher when paying for big ticket items or travel. In my separated status, it will probably be a bit lower. I don't NEED a $10k limit.

She has a tiny bit of income showing up from self-employment (few hundred/month at most), and just like me, no job with salary. She did get the Chase/SWA card with pretty much identical credit/situation as mine. I don't know what she put on her application as "income"

I'm sure that I could get at least a secured credit card from my credit union if I needed one, but I'd rather get a card that would be useful to me in the future.

How harmful to my credit report are an inquiry or two? I think I'll just pick a couple cards that seem like good deals, and plausible for me to get approved. I expect to keep them, so I'd rather not take ones that are a bad deal for me.

User avatar
Vattené
Centurion Member
Centurion Member
 
Posts: 1157
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Postby Vattené » Thu Feb 26, 2015 3:12 pm

As far as inquiries go, there's no need to worry about them too much*. Adding them is always a negative impact, but it is minimal with long, clean histories. It's the thin files that take a harder hit.

*There is an exception if you're planning on buying a house soon. Just wanted to point this out since your personal life is a bit complicated. If you're pretty settled where you are, however, it shouldn't be a concern. They are off your report after 2 years and stop impacting your FICO score after 1.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Anonymouse
Green Member
Green Member
 
Posts: 6
Joined: Tue Feb 24, 2015 4:20 pm
Location: USA

Postby Anonymouse » Thu Feb 26, 2015 3:33 pm

Thanks, everybody for the advice!

Nope, I'm not buying a house, probably not in the next decade, if ever.

And if I did, I'm sure the lender would care a LOT more about whether I have reportable income than a credit card lender does! (I'll probably need income in a few years anyhow.)

I think I'm just going to apply for a card (or two) soon and see if I'm approved and what CL I get.

My requirements:
  1. Prefer Visa/MC for wider coverage; might get AmEx as a second card.
  2. No annual fee. (Back of the envelope calculation...1% rebate would cancel out $100 annual fee)
  3. Good rebate program.

    My definition of good includes not making me jump through hoops like sign up for this special rebate category every three months, or track which card has a better rebate at grocery stores and which card has a better rebate at gas stations.
  4. Good customer service and low/reasonable fees. Sadly credit card fraud comes up more and more often these days.

Less important: Interest rate -- I don't expect to pay it often.

DON'T CARE: Intro balance transfer rate--nothing to transfer

I want to apply for the card, use the card, and pay the bill every month, without being bothered by it.

Does the Citi Double still sound like a good choice for me? Are there other cards that sound as good or better?

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3757
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Thu Feb 26, 2015 6:11 pm

Okay...so with a semi-separation, and possible future divorce, I can understand your desire to have your own credit! That definitely changes things...

The possible downsides of the Citi Double are:

1. The customer service is generally mediocre. I say this having gone through the CFPB complaint statistics.
2. Anecdotally, I've read a lot of people say they felt they got a lower CL than they expected. I can't back this up statistically, though.

You're right to think that the rewards program is straightforward and the card is widely accepted. You could apply for it and see what response you get. A secured card probably should be a last resort.

Don't worry about a few inquiries. I already had 5 on Experian when I got my most recent card with a $7,500 CL.

There are cards I like more than Citi DC, but they involve the micromanaging you hope to avoid...a lot of micromanaging... to the extent of:

Which card to use for groceries?
1. Does the Freedom offer 5% in URs (worth around 7.5% to 12.5% cash)?
2. If not, does Discover offer 5%+ in cash?
3. If not, would I be within $250 monthly grocery spending for Sallie Mae's flat 5%?
4. If not, use the BCE for 3%.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests