Question open new CC acct after being retired for a year

[Tiny]

I'm trying to offer some help and "morale" support for my dear complicated friend (she has anxiety/depression and is being treated for it).   

She retired a year ago, she's 58, she has a teacher's pension and other savings.  I strongly believe she is fine financially.  She is stuck in the 1980's when it comes to banking, CCs,  and any use of the internet/online for personal stuff - other than youtube and Amazon.   She doesn't trust the internet - but she trusts Youtube's bad information  and Amazon.   ADDED:  she's afraid of "being hacked and having all her money stolen"  She's seen videos on youtube about this...   I'm not sure what this means... but when I suggested she check her Credit Card account online - she said "oh no!!!  I'm afraid of having the account hacked!!!"    I'm working on soothing/quieting this fear. 

She has only a Discover Card. no store cards, no debit cards, no other credit cards.   I feel like this is drama/stress waiting to happen.  I would like to encourage her to get a second (maybe a third) card that she can use for different purposes.   This might help with some other sources of stress in her life. 

How difficult is it to open new Credit Card account(s) when one is Retired?    What info would she supply (she doesn't have a W2 or an Employer)? 
Should she work towards opening up to 1 or 2 new cards over time?  

TLDR;

I would like to encourage her to get a second/back up Credit Card.   I'm hoping to convince her to pay her cable/internet bill via credit card.  She had a HUGE amount of drama/stress 2 months ago - when she didn't get the mailed to her bill to pay and she didn't pay the bill.   Once I get her paying her cable/internet bill to her credit card - I'm hoping to convince her to use online banking (she had some recent drama/anxiety/stress over not knowing if a deposit had hit her account and anxiously waited for her snail mail monthly statement from the bank she didn't know she could call every day to get the balance amount of her checking account via the automated phone system.).  But one thing at a time.  

What kind of "structure" would be low stress or atleast "feel safest" and most manageable:
A card ONLY for automatic payments (like Cable, and any subscriptions (like netflix or hulu)  she may want and eventually a cell phone plan - her phone is so old she has to use the number pad to text). 

And then maybe a 3rd card to "compliment" the Discover Card for everyday useage - like maybe a BoA  1%, 2% groceries, 3% gas (or pick a category)  card  (I think she might be comfortable switching over to using a CC for groceries. The pandemic forced her to stop paying cash for gas and she has come around to convenience of paying at the pump with a card.  

I suspect even if she gets a 1K or 3K limit on a new card (or cards)  - she will be fine with the utilization on it.      She's single so groceries shouldn't be a big expense and will probably fill up the gas tank on her economy car once a week. 
 
I'm thinking as long as she has 2 cards (even if she is using them monthly for different things) she will have a "back up" card.   

Any suggestions for what the final set up would be?   Or reasonable cards to apply for?       I don't think an AmEx would be a good choice.  She's had problems with Discover not being accepted in the past - and I think AmEx isn't accepted everywhere either.   I'd like to go with a visa or a master card. 

I think she banks with BMO Harris. 

[dannylion]

I am a retired person who has opened new credit cards, bank accounts, and brokerage accounts since retiring with no difficulty.  Since she has a pension that can be documented as providing a regular source of income, she should be fine as far as getting approval as long as she doesn't try to open a whole bunch of credit cards all at once.  

[Tennesseer]

Oct 14, 2021 14:34:11 GMT -5 Tiny said:

I'm trying to offer some help and "morale" support for my dear complicated friend (she has anxiety/depression and is being treated for it).   

She retired a year ago, she's 58, she has a teacher's pension and other savings.  I strongly believe she is fine financially.  She is stuck in the 1980's when it comes to banking, CCs,  and any use of the internet/online for personal stuff - other than youtube and Amazon.   She doesn't trust the internet - but she trusts Youtube's bad information  and Amazon.   ADDED:  she's afraid of "being hacked and having all her money stolen"  She's seen videos on youtube about this...   I'm not sure what this means... but when I suggested she check her Credit Card account online - she said "oh no!!!  I'm afraid of having the account hacked!!!"    I'm working on soothing/quieting this fear. 

She has only a Discover Card. no store cards, no debit cards, no other credit cards.   I feel like this is drama/stress waiting to happen.  I would like to encourage her to get a second (maybe a third) card that she can use for different purposes.   This might help with some other sources of stress in her life. 

How difficult is it to open new Credit Card account(s) when one is Retired?    What info would she supply (she doesn't have a W2 or an Employer)? 
Should she work towards opening up to 1 or 2 new cards over time?  

TLDR;

I would like to encourage her to get a second/back up Credit Card.   I'm hoping to convince her to pay her cable/internet bill via credit card.  She had a HUGE amount of drama/stress 2 months ago - when she didn't get the mailed to her bill to pay and she didn't pay the bill.   Once I get her paying her cable/internet bill to her credit card - I'm hoping to convince her to use online banking (she had some recent drama/anxiety/stress over not knowing if a deposit had hit her account and anxiously waited for her snail mail monthly statement from the bank she didn't know she could call every day to get the balance amount of her checking account via the automated phone system.).  But one thing at a time.  

What kind of "structure" would be low stress or atleast "feel safest" and most manageable:
A card ONLY for automatic payments (like Cable, and any subscriptions (like netflix or hulu)  she may want and eventually a cell phone plan - her phone is so old she has to use the number pad to text). 

And then maybe a 3rd card to "compliment" the Discover Card for everyday useage - like maybe a BoA  1%, 2% groceries, 3% gas (or pick a category)  card  (I think she might be comfortable switching over to using a CC for groceries. The pandemic forced her to stop paying cash for gas and she has come around to convenience of paying at the pump with a card.  

I suspect even if she gets a 1K or 3K limit on a new card (or cards)  - she will be fine with the utilization on it.      She's single so groceries shouldn't be a big expense and will probably fill up the gas tank on her economy car once a week. 
 
I'm thinking as long as she has 2 cards (even if she is using them monthly for different things) she will have a "back up" card.   

Any suggestions for what the final set up would be?   Or reasonable cards to apply for?       I don't think an AmEx would be a good choice.  She's had problems with Discover not being accepted in the past - and I think AmEx isn't accepted everywhere either.   I'd like to go with a visa or a master card. 

I think she banks with BMO Harris. 

Does BMO Harris have on-line banking? And does BMO Harris offer a BMO Harris Mastercard or Visa?

I have done on-line banking for years. My banking is with a national bank. I pay my bills on-line through them. I use a postage stamp about twice a year and it's not for a bill. I have a credit card through my bank.

I have never been hacked. I have also been using a keyboard and computer since around 1971 so I am not too concerned with using a computer.

[minnesotapaintlady]

I open a lot of credit cards (rewards churner) and have never been asked to give any proof of income when I did.  I wouldn't think being retired would matter at all. 

[dannylion]

As a person who does everything online, I'm not sure what to offer regarding methods for introducing someone to online banking who is so fearful and reluctant to do so.  It must be very frustrating to have so many obstacles presented by the person you are working so hard to help.  I hope she will come to appreciate your persistence in continuing to assist her.  

I think your idea of a Visa or Mastercard as the backup, though, is the right choice.  I would go with Visa since it seems to be the card of choice for various issuers, but that might just be a function of the retail and service providers I use.  

Since she is so anxious about being victimized by using credit cards for paying her bills, have you considered starting her off with a prepaid card for things like that?  I'm not exactly sure how those work, but it has been my understanding that they work similarly to regular credit cards.  If she could use a prepaid card for bill payments, that way, if the worst happened, she would only lose the amount available on the card (which she might be able to recoup via a fraud claim with the credit card company).  She would, of course, have to remember to keep the prepaid card replenished, but that might be a good introduction to using credit cards online.  

Paypal might be an option, also, since the recipient never sees the credit card information.  

She could open an online savings account at a bank like Capital One or Ally (both FDIC insured) where subaccounts can be created and use a subaccount to hold a limited amount of money for paying bills.  That would also limit any loss in the event of fraud.  I believe most bill payment can be done from either a checking or savings account.  (I'm sure there are other banks that offer the option of subacounts; those are the only two I know about.)

You could find articles in publications she considers trustworthy that discuss the likelihood of losing all one's money by  paying bills or banking online and what kind of safeguards are available through the financial institutions in such cases.  That might help her put her fears in perspective.  (Surely there must be any number of articles on that topic available.)

[susana1954]

Oct 14, 2021 14:54:51 GMT -5 minnesotapaintlady said:

I open a lot of credit cards (rewards churner) and have never been asked to give any proof of income when I did.  I wouldn't think being retired would matter at all. 

It doesn't matter.  I also open a lot for the rewards.

[Tiny]

Oct 14, 2021 15:09:29 GMT -5 dannylion said:

As a person who does everything online, I'm not sure what to offer regarding methods for introducing someone to online banking who is so fearful and reluctant to do so.  It must be very frustrating to have so many obstacles presented by the person you are working so hard to help.  I hope she will come to appreciate your persistence in continuing to assist her.  

I think the compounding obstacles of doing routine things the "old way" are finally becoming a source of "pain" that's too much to bear. I think she has realized this and was more open to making some changes. I'm looking for some easy 'baby step' things that don't feel so "risky" and that have a high potential to be successful - hence the cable bill being paid by her credit card - and accessing her credit card account on line. None of that touches her "banking account". She's had fraudulent charges on her credit card and has successfully navigated that without "losing" any money... and I explained that having a userid/password that gets to her account isn't opening her up to any more hackers than using her card at the gas station to get gas.

I think some of the CC issue is just fear of having debt (as in having debt is BAD - I always counter this with "debt is a tool. It's not good or bad. You can use debt wisely and safely). I like your suggestion about pointing her to some better sources of information than youtube videos.

Paypal might be an option, also, since the recipient never sees the credit card information.  

I don't think she's ready for this... but I do agree it's an option... I have to get her to be able to look at her CC account online. I think there's a lot of "mystery" and "unknowns" that are a source of anxiety for her.  As in what to expect and what if the wrong button is pushed? or what if it's too complicated to understand.   We all know this isn't going to happen - there are few if any wrong buttons (unless you are on the Treasury Direct site)... and it's not that hard to understand how to navigate the sites.      The unknown is scary... 

You could find articles in publications she considers trustworthy that discuss the likelihood of losing all one's money by  paying bills or banking online and what kind of safeguards are available through the financial institutions in such cases.  That might help her put her fears in perspective.  (Surely there must be any number of articles on that topic available.)

Thank you for pointing this out. I was totally missing the obvious! I'm now realizing she might not know HOW to find reliable info online. And google search (and youtube) do their best to give you MORE of what you looked at recently...

[Tiny]

Thank you for the affirmations that opening a new CC shouldn't be a difficult process because she is officially retired.   

It's been about 8 years since I opened up a new CC account that I didn't get a solicitation for and I'm pretty sure they wanted some employer info.. maybe it was optional  

I will have her start with her bank for a possible additional CC (weather she uses it for something other a back up card or not.   I do think she would be better off in the long run with a second card. )

I looking to schedule some time with her next week...  I will let you know how it goes.     

Thank you! 

[Tiny]

Oh yeah!   NerdWallet and Investopedia to the rescue!    for articles about the safety of online banking and  info about credit cards - all written in easy to digest articles.  

[TheOtherMe]

I have opened credit cards since I've been retired.  My income has never been verified by any of the companies.  I put in the source and the amount.  That's been the end of it.

The mail slowdown is going to make people who still wait for bills and mail checks harder to be on time.

There are some places that don't accept Discover so she might need a Visa or MC.