I’ve recently become a home owner (woo hoo?) for the loan, I had to close my beloved AMEX rewards card, after reducing the credit limit twice. Now the loan is settled and I’ve moved in, I’m wanting to open another rewards card to use & earn for everyday spending - nothing crazy as I already have a big screen TV. I’ve already applied for two cards but both have been rejected. I’m single and live alone, so paying the mortgage myself. I have $20k in savings, paid off my HECS and own my car, so basically I’m debt free aside from the mortgage - so why am I being rejected for the cards? Is there a rewards card program that would accept my history?
NB: Preciously closed AMEX card and home loan is with NAB so can’t receive any bonuses for signing up for these cards
Well done on buying your home! Despite your slight doubts, home ownership is great if for no other reason that you’re no longer subject to landlords and their whims!
The fact that you’re debt-free aside from the mortgage is great – but how many debts you have is just one factor that the credit card companies look at. They also look at your income, the size of the debts you do have relative to your income, and your capacity to pay off debt.
My home loan is with NAB and I can confirm that I sign up for at least one NAB credit card every year, to receive the sign-up bonus, and then cancel the card. So there’s no reason you can’t do that, and depending on your home loan package, you may even be entitled to have the card’s annual fee waived as a NAB home loan customer.
.
“Is there a rewards card program that would accept my history?”. If I were you I’d actually start off with NAB as you have a relationship with them and they already know your history. Have a look at the various NAB rewards and NAB Qantas rewards cards available, and work out whether any of them is right for you.
If you still get rejected, you may want to consider one of their no-rewards credit cards with a very low credit limit (such as $1000). This will at least give you more of a credit history and hopefully make it easier for you to get approved for points-earning cards in the future.
I hope this helps!
@sixtyeight read my mind! Have not thoroughly investigated the home loan options out there, but it is common for home loan customers to be able to get issued a credit card with the home loan at a discounted or waived annual fee. See if this is an option for you with NAB as getting a fee free credit card is a rare opportunity.
Excellent responses from @sixtyeight and @djtech - my 2 cents below.
My first thought when I read your post was if you were applying for the Signature/Black level credit cards and hence the rejections. If so, may be stick to the Platinum level cards (min credit limit low; so better chances of approval).
Since you mentioend your home loan is with NAB, I completely agree with @sixtyeight - think your best bet is NAB credit cards. If you have the home loan package, they even waive your credit card annual fees. Also remember you get better bonus points offers if you navigate from within your Internet Banking.