Credit Card Minimum Income Requirement - Strictly Enforced?

jlim87 on 04/01/2019 - 13:06
Last edited 04/01/2019 - 17:13

Pretty straight forward question - how strictly enforced, or how negotiable are minimum income requirements? ANZ Bank specifically, but would be interested to know about other banks as well.

I'm a Qantas frequent flyer points and Status Credits hoarder, and thinking of getting my partner to sign up for the new ANZ Black CC with 120k QFF + Status Credits. She earns below 75k but no loans/debt, real estate assets, positive savings etc.

Never had an account with ANZ before, just wondering if it's strictly enforced, or it's negotiable online/in-branch with consideration of those other factors (debt/savings/assets) that they ask during the sign up page.

edit: didn't include income; 64k

Financial Credit Card

Comments

  • [Deactivated] on 04/01/2019 - 13:42

    How far below $75K?
    Like $5K? or $20K? or $74K?

    • whooah1979 on 04/01/2019 - 14:20

      May be the partner is doing undocumented work.

    • jlim87 on 04/01/2019 - 17:12

      sorry, should have mentioned it. 64k.

  • Yongaz on 04/01/2019 - 13:59

    I think income is only one of the factors… My wife earns $90+k a year, we have a joint home loan with about 20% equivalent of the home loan in savings (and yes it's in an offset account), no other debt (we paid for both our cars in cash) but she has never had a credit card before on her own (she's got a supplementary under mine). She was conditionally approved by the ANZ Black credit card upon application, but then got rejected after what I assumed was a credit / background check.

    I also got rejected by the ANZ black application - I've had a perfect 18 year credit - always paid off the full amount every time except for that one time where I just forgot and also meet the minimum income requirements. I was approved for the St. George card which effectively had the same requirements (though I applied for this first, which is possibly why I got rejected).

    My other rejection a few years back was by HSBC - back then I had NO loans or debts and basically fulfilled everything (and yes I owned my small home and my car outright)… and they wouldn't even give me a $6000 credit on a $35k minimum income requirement. And they wouldn't tell me why.

    So depending on how far below the $75k income, you might stand a chance as there are a number of a factors.

    However keep in mind every credit card you apply goes into your credit history now (inc. your rejections), so it's probably better off applying for something with less points and build your credit up more.

  • jackofspade on 04/01/2019 - 14:33
    +4

    New stricter assessment rules came into effect this year which will make it harder to get approval.

  • andyyle on 04/01/2019 - 14:36

    ANZ are known to be fairly strict and thorough with their checks.

  • [Deactivated] on 04/01/2019 - 14:42
    -6

    I wouldn't bother with credit card rewards.

    I have several hundred thousand in the bank but they never offer me a credit card. I think the last time I applied was around 6 years ago for a $2000 limit and it was not approved.

    Just save your money and use a debit card. That's what the new generation is doing. The banks have a really poor credit risk model, for some reason the people that can't pay are the ones that get credit… Ironically.

  • fullmetal on 04/01/2019 - 15:14
    +1

    I had bad experience with ANZ, they scrutinized every single line items in your bank statements. Positive savings isn't enough they only care about your spendings not how much you save. If you are going through with this be prepared to provide them with around 6 months payslips, 6 months bank statements etc and I believed their assessment team is not based in Australia somewhere in the asian countries.

    • fishball on 04/01/2019 - 16:45

      Same bad experience for ANZ. I assume they are trying to lower the number of CCs they issue or are just more strict now

      From my experience of the Big 4, Westpac>>>CBA>NAB>ANZ in terms of ease of getting a CC.

      • [Deactivated] on 04/01/2019 - 17:33
        -2

        The question, is it strict enough going forward?

        People bash the banks but we always see on the current affairs channels that some person who has taken on debt through the traditional credit risk model who is in trouble.

        That is they haven't obtained credit by deception and yet they suddenly don't have an ability to pay.

        Looks like people didn't understand my original post. The intention is to show some flaw in the credit risk models. In fact it may still persist to today.

        Oh, and the only way banks make money on credit cards is if people don't pay off the whole balance on time… So, that's in direct conflict with finding customers who they want to issue the cards out to.

        I think that was pretty obvious but I should still make it clear.

        • fishball on 04/01/2019 - 17:40

          Banks make the majority of their money from CC's through interchange fees not the interest rate from people that don't pay it off completely.

          ACA always goes for the shock value and tells you the most outrageous stories or outlier cases. For every idiot that overspends way out of their budget there are probably 99 people that don't.

          My post also has nothing to do with your post.

          • [Deactivated] on 04/01/2019 - 17:42

            @fishball: Where do you have the information on that?

            Why aren't debit cards pushed more than credit cards which have higher interchange fees…

            I'm pretty sure these are a minor earnings feature in terms of where the earnings from a CC come from…

            Unless you can back it up somewhere, I'm lead to believe otherwise.

            If I'm so uninformed as implied, then yeah I need this information. lol.

            I'm willing to admit I'm wrong, because yeah I could be, but a common sense approach leaves me hanging a bit.

            Oh and there should be more emphasis on ability to pay as income is not a good indicator of this. I'm glad they are using the purchasing history these days, but is it enough? Now I'm not sure about the inner workings of this, but if you spend with another bank account; well is that going to show up on your application. Hopefully there are no holes for people to obtain credit that shouldn't have it. Especially those looking to refinance and churn (possibly kicking down the can down the road indefinitely). That's just not the right thing to be doing, ask yourself should you even have this line of credit.

      • jlim87 on 04/01/2019 - 18:03

        Thanks. That's good to know.

      • thetrain on 04/01/2019 - 18:08

        Interesting …

        I've posted further down but summary of my history of CC is

        CommBank - rejected
        ANZ Black FF - accepted using 3 months of payslips/bank statements

        The lack of consistency in assessing credit is concerning

    • thetrain on 04/01/2019 - 17:58

      Current ANZ FF CC customer, applied 2nd half of 2018.

      I only needed 3 months payslips and bank statements. They didn't ask any questions about statement, approved very quickly.

      Can't fault ANZ so far.

      • [Deactivated] on 04/01/2019 - 17:59

        Woah. Hmmm… Why do some people have a differing experience then. Strangely enough. (fishball for example)

        • thetrain on 04/01/2019 - 18:00
          +1

          Yep I don't know why we have different experiences?

          Lack of consistency is a tad concerning in the current credit/risk environment for the banks.

          • [Deactivated] on 04/01/2019 - 18:02

            @thetrain: Yeah, it might be something about the credit file. I didn't tell them where I was employed when I did mine.

            They still have little to no information on my file. You actually volunteer information when you apply to see your credit file.

            I think it must play some part.

            Veda if anyone was interested. It's in the application process when you apply for the credit alerts subscription, you'll notice what I mean.

            • thetrain on 04/01/2019 - 18:06

              @[Deactivated]: That would definitely be a factor. My credit file is clean as a whistle (I check every year).

              It's funny though that I was rejected for a CommBank credit card many years prior, back when they seemed to be giving them away. That rejection actually prompted me to be proactive in checking my credit history and score although I've never had a black mark on it.

            • chumlee on 04/01/2019 - 18:07

              @[Deactivated]: Comprehensive Credit Reporting has changed that now. Banks can see a lot more about you

              • [Deactivated] on 04/01/2019 - 18:49

                @chumlee: Maybe I qualify under the new rules. I am not allowed to disclose my employment due to an NDA…

                I wonder if I would be breaching it by applying for a card now that that information could be available.

    • Gandalf the Thrifty on 04/01/2019 - 22:11

      Wow. I'm pretty sure I only gave 2 payslips when I applied last year. Don't remember even giving bank statements, but did have mostly dormant savings account with anz.

  • thetrain on 04/01/2019 - 15:58

    If you don't meet the requirement then expect to be rejected. No rule bending in current risk environment ie. Royal Commission

    • jlim87 on 04/01/2019 - 17:14

      Thanks. I guess this is what I was looking for, a matter of is it a hard or soft rule.

      • [Deactivated] on 04/01/2019 - 17:39
        -1

        Do the benefits outweigh the costs of the application process?

        That's the question you should be asking yourself.

        There is always the possibility of using a guarantor.

        Personally, I wouldn't bother with it if I was in your situation.

        • jlim87 on 04/01/2019 - 18:02
          +1

          We've got our home sorted and don't see us buying any real estate in the next 10 years so don't really care about credit rating. No debt and just looking for a new default card so when she does her shopping at least she's getting max 1:1 QFF earning rate. We travel often enough and are maintaining our Qantas gold status so that extra status credit and QFF points were attractive looking.

          Just wanted to know if it was worth the trouble or if doing something like going in branch increase the odds of approval. I assumed all applications are put into their system that just checks income and decide yes or no. Was hoping someone who had info on how it works would chime in, and it seems like it's a hard no, which is all good.

  • Samsungnote10 on 04/01/2019 - 22:04

    June 2018, I got anz Black approed with income less than $75k,

    was a surpised, but happy

    • jlim87 on 05/01/2019 - 01:54

      That's great. Did you apply online or in a branch?

      Looking on the online form, there's a question there saying "Do you earn more than 75k per annum?" I assumed the moment you answer no, the computer immediately bins your application. If you don't mind me asking, were you just slightly lower than 75k? Partner is at 64k.

      • Samsungnote10 on 05/01/2019 - 14:52

        I submitted with $65k
        also, be aware that some credit card applications, ask for house hold income,
        or even total income

        ive applied for some cards that actually have asked what my net income is, not my PAYG income, so Iadded on rental income etc. in, to make my appication stronger

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