Author Topic: Credit after FIRE  (Read 832 times)

bluebelle

  • Pencil Stache
  • ****
  • Posts: 514
  • Location: Toronto
Credit after FIRE
« on: February 20, 2020, 08:04:02 AM »
For those of you already FIREd, how do you managing obtaining new credit, specifically CCs

While I'm working, I have an income that makes CC companies fall over themselves to give me top tire credit cards.   Once FIREd, I won't have an income, although I'll have a shit ton of assets to support that retirement.   My income will be from a little dividends, capital gains, etc....because I don't need that much to live off (relative to assets), my income will be low, about 30% of current income.   How hard/easy is it to get a new credit card?   New cards/better offers come out all the time.   I might want a different credit card in 5 years compared to the ones I have now.


Rosy

  • Handlebar Stache
  • *****
  • Posts: 2249
  • Location: Florida
Re: Credit after FIRE
« Reply #1 on: February 20, 2020, 10:40:04 AM »
You may want to ask this question in the POST-FIRE section under General Discussion:).

bluebelle

  • Pencil Stache
  • ****
  • Posts: 514
  • Location: Toronto
Re: Credit after FIRE
« Reply #2 on: February 20, 2020, 10:41:20 AM »
You may want to ask this question in the POST-FIRE section under General Discussion:).
thanks, I'll add it there.....


lhamo

  • Bristles
  • ***
  • Posts: 371
  • Location: Seattle
Re: Credit after FIRE
« Reply #3 on: February 20, 2020, 11:49:11 AM »
We have not had any trouble getting new credit cards post-FIRE.  That might change if there is another recession, but for now the CC companies seem happy to hand them out like candy.

It isn't really a huge deal though, unless you are planning for CC bonuses to make up a big chunk of your income.  Or if you NEED to travel for some reason and are relying on point bonuses to make that cheaper. 

spartana

  • Handlebar Stache
  • *****
  • Posts: 1538
  • FIREd at 36? Or maybe it was 42?
Re: Credit after FIRE
« Reply #4 on: February 20, 2020, 05:17:29 PM »
I haven't applied for any new CC (or any type of credit) since FIREing but I am constantly getting automatically higher CC limits (unasked for), low % new card offers, and zero percent offers on existing cards even though on paper (income taxes) it doesn't look like I have much income. So there is a pretty good likelihood they just look at your current credit score and not your income for new cards.

Saving in Austin

  • Stubble
  • **
  • Posts: 169
Re: Credit after FIRE
« Reply #5 on: February 20, 2020, 09:29:59 PM »
Credit card applications always ask you to state your income before approval. I have always inflated the numbers a bit to help with getting a bigger credit line. You can just keep reporting your old income pre-FIRE. It is different when applying for mortgages and you need to show tax returns.

Paul der Krake

  • Magnum Stache
  • ******
  • Posts: 4861
  • Age: 12
  • Location: UTC-10:00
Re: Credit after FIRE
« Reply #6 on: February 20, 2020, 09:35:18 PM »
FYI, lying on a loan application is a crime, and in some circumstances people are prosecuted for it.

Catbert

  • Handlebar Stache
  • *****
  • Posts: 1817
  • Location: Southern California
Re: Credit after FIRE
« Reply #7 on: February 21, 2020, 10:41:30 AM »
Getting credit cards after retirement has never been a problem for me.  On-line applications ask for pretty minimal info: family income, income source (or maybe it's occupation.  In any event "retired" is an option), and mortgage/rent payment.  Some also ask if any of the income is "tax free".  I *think* an excellent credit score will get you most cards.  The answers to the income/mortgage questions will mostly determine  how much credit you'll get.

What's interesting is that if my DH and I both apply separately for a card we each list the same joint "family income."

I would never lie about income, but sometimes it's hard to figure what to include.  Personally I think you could list anything that shows up on your tax return even if its not taxed.  So to me that would include Roth conversions, dividends/interest/capital gains (even if reinvested or not taxed), etc.   

mozar

  • Magnum Stache
  • ******
  • Posts: 3216
Re: Credit after FIRE
« Reply #8 on: February 22, 2020, 03:51:07 PM »
I have put really low income on the application and still gotten approved. If you are fired you are taking distributions from your index funds right? So put that.