Author Topic: credit after FIRE  (Read 1152 times)

bluebelle

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credit after FIRE
« on: February 20, 2020, 10:41:44 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.

daverobev

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Re: credit after FIRE
« Reply #1 on: February 21, 2020, 06:36:31 AM »
Some say "or you spend $x a year, or you have $y invested".

Very few actually check your income, if you feel like you are meeting the 'spirit' of their requirement if not the letter.

Generally speaking though, you're SOL or you're telling lies. It becomes a question of morality - something only you can decide based on what's written. Make sure you get all the good stuff before you quit, and/or have a good relationship with your bank manager (ie Scotia, if you do it in person you can certify you have enough income OR enough savings etc).

Or you can argue your stock market income is income.

BigMoneyJim

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Re: credit after FIRE
« Reply #2 on: February 28, 2020, 10:14:07 PM »
I *think* the FICO score is far more important than income. I'm hoping a history of regularly using credit cards with no late payments will keep me out of trouble.

On the other hand, if it doesn't, I'm not carrying debt so I can eliminate the middle man and use a debit card with a Visa/MC logo.

It may depend on the institution and prior relationships, too. I retired 5 months ago, and I recently decided to shut down a less-favored credit union (with card) and set up another. I applied to Wings CU to open a simple savings account to get my foot in the door to apply for their CC, and they wanted me to show proof of income!!! They were very slow to reply online. So instead I went to my brokerage account and applied for their CC...approved within 10 minutes. It did have a required field for income...I started to overthink it, then just put my planned yearly withdrawals/expenses. I also put "retired" for both applications.

But being only a few months retired and working most of last year, maybe I haven't hit the rough phase yet.