Our Recent Posts

Archive

Tags

A Cashless Society?


Can you imagine a world without credit cards?

Neither can I.

We appear to be heading towards a largely cashless society but I cannot yet believe that we can totally get rid of small change.

The rules applied by financial institutions, largely banks, about who gets a credit card are curious to say the least.

One of my elderly clients whose husband passed away a couple of years ago leaving her with an unencumbered house worth more than a million dollars and a superannuation account paying her a tax free $100,000 plus annual income, applied for a credit card for the convenience of paying her bills while travelling to four overseas countries, all with different currencies. The purpose of her trip was to catch up on her growing number of grandchildren.

She was refused the application (with a $2500 limit) because she could not attach a copy of her last tax return, which was lodged the year after allocated pensions became tax free. She did not have to lodge after that.

If I was a banker I would much rather enroll in my credit card client base, an 80 year old millionaire widow with a lifetime behind her of always paying her bills on time, than a 40 year old employed father of four teenagers, even one on a $100,000 plus salary.