Dear Liz: I recently applied online for a credit card and was denied, as my credit reports were frozen. I thawed it out and applied again, but was rejected again. I received a message saying that the rejection was because I had no credit history for installments. I have no debt, mid-1800s credit scores and $2 million in retirement accounts. Our paid-for house is worth about $1 million. This doesn't make any sense.
Answer: Federal law requires credit card issuers to send you the “adverse action” letter you received explaining why your application was denied. But that message should not be the final word.
You can contact the issuing authority and politely ask to reconsider your application. Most credit applications are evaluated by algorithms, not people. Involving a human can make a big difference, so you'll need to get that person on your side. Be friendly and polite.
List all the factors in your favor, such as a steady income and a (presumably) long history of handling credit cards responsibly. Explain that you don't have an installment loan, such as a mortgage, because your home is paid off. If you have an existing relationship with the issuer, such as other credit cards or bank accounts, mention that as well.
There are no guarantees that you will be successful if you ask, but you are guaranteed not to get the card if you do not ask. good luck!
The ins and outs of what matters for a will
Dear Liz: The value of our car, furniture, and personal items is much less than the $185,000 that currently results in probate in California. We no longer own real estate. Am I correct that investment and bank accounts that have designated specific beneficiaries do not count toward the probate limit?
Answer: Yes. (By the way, your car doesn't count either).
Most states have simplified the procedures for small estates. California's cap, which is raised with inflation every three years, was set at $184,500 on April 1, 2022. What is counted for probate purposes depends on state law, and California excludes cars, boats and mobile homes, as well as bank accounts owned by multiple people. Persons and property that pass directly to the spouse and estates outside of California.
Other property that avoids probate includes life insurance proceeds, death benefits, and accounts that have designated beneficiaries. Estates can avoid probate if they are held in joint tenancy or transferred using a deed of conveyance on death. Property in a living trust also avoids probate.
When should a second earner start receiving Social Security?
Dear Liz: I'm 64 and still working and getting paid well. My wife is 61 years old and retired. I have been a high earner for most of my life while working and raising our family. I don't plan to retire anytime soon. Is it a good idea for her to start taking Social Security at age 62?
Answer: It is best for the vast majority of people to delay their Social Security claims as long as possible so that they can maximize their lifetime benefits. It is especially important for you to delay, since as the higher earner, your benefits will determine what the survivor will receive.
However, your wife may be one of the few who would be better off starting early. This may be the case if you continue to delay your application, and her final spousal benefit is greater than what she would receive on her own record.
If both are true, she could start her reduced retirement benefit at age 62, then switch to a spousal benefit of up to half your check after you file for your benefits — preferably at age 70, when the maximum .
Your spouse will not be able to receive spousal assistance until you apply for it yourself. On the other hand, you will not be allowed to switch benefits if you are already receiving your benefits when you apply.
Obviously, there are a lot of rules involved, and the best course of action for you both will depend on the details of your situation. It would be smart to use a Social Security claiming site, such as Maximize My Social Security or Social Security Solutions, to help you determine the best approach for you.
Liz Weston, Certified Financial Planner®, is a personal finance columnist for NerdWallet. Questions can be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604; Or through the “Contact” form on Asklizweston.com.
