Credit card application

[mwycho]

Hi,
I tried to apply a credit card from ING. They rejected my application due to I am a sole trader.
I told ING that I can send my tax return to proof that I have a good income. ING just ignores my income and reject the application on the ground that I am a self employee.
I feel that I am discriminated by ING!

[PhilT]

@mwycho

I feel that I am discriminated by ING!

Unfortunately for many who would like ING cards, ING has the discretion to set their own credit standards; agree with them or not, that is not ‘discrimination’ under Australian law.

Generally ING is known to give credit cards to their customers who have or are given ING Orange transaction accounts and that have PAYG slips for wages. If they do take super statements that is AFAIK relatively recent, and the self employed are essentially ‘not their business’. For self employed some banks require statements of income for the previous 3 years by an accountant, not usually without cost to the applicant.

FWIW ING credit cards have to be auto-paid from the ING Orange transaction account. My partner has a credit card but I have not bothered because we pay cards 100% each month so using my debit card, if I need to, only requires a transfer from the savings maximiser to the transaction account. As we have other credit cards we are not dependent on ING.

While not obvious this older topic and the topics it links apply equally to the self employed as well as to the retired, more often than not.

Retirees being denied credit

Hi all, CHOICE is revisiting the issue of banks denying self-funded retirees new credit cards or credit increases on existing cards. Banks seem to be doing this because they don’t want to extend credit to people who don’t have a job and the regular pay that comes with it, even if these applicants have substantial investments and few debts. Has this been happening to you or people you know?

[mwycho]

Hi Philt,
Thanks for the reply and the information.
I like to use the credit card because I can set the limit on it. With the debit card, I worry if I lost it, some body who picks up my card can clean up my account.
Also ING doesn’t charge the fee. They have a good customer service. I don’t have to wait for a long time on the phone. Bankwest’s credit card also has no fee but takes me a long time waiting on the phone!

[phb]

@mwycho

I like to use the credit card because I can set the limit on it. With the debit card, I worry if I lost it, some body who picks up my card can clean up my account.

With a Visa or MasterCard debit card, they offer the same protections as a credit card in relation to unauthorised transactions. They also provide the ability to do chargebacks.

If you are worried about the amount someone could spend before unauthorised transactions are identified, you can always have two bank accounts. One attached to a debit card where you manage the amount of money in the account (set yourself a limit to keep to) and another to have additional cash which can be transferred to the debit card account when needed.

Many banks allow customers to set balance notifications for an account. Notifications when a balance goes under or over a set amount. These are useful for managing balance amounts in accounts.

[mark_m]

@mwycho

I like to use the credit card because ….

I like to use a credit card because it provides the ability to ask for a charge back when a vendor does the wrong thing.

If a debit card is compromised recovering any money lost is next to impossible. There are currently greater protections when there are fraudulent charges against a CC. If only because CC providers pay greater attention to transactions than direct debits.

There is a cost of using or having a CC. There is also a cost to having money in zero interest transaction a count linked to a debit card. Better to hold that cash in an interesting earning account until the last day a CC payment (in full) is due.