Can I switch to a new credit card if I’m living off my investments?

20 April 2018


I have retired early at the age of 59. In a few years, I’ll start to receive an income from a final salary pension scheme and I’ll get my state pension. In the meantime, I draw an income from my investments. I have a credit card that I acquired while I was earning a salary. I would like to apply for a new credit card with better rewards, but because I don’t have an employer or a salary I’m worried my application will be rejected. I could say that I am retired, but there is no annuity or defined benefit source that can be verified as a reliable income. Am I doomed to being unable to apply for normal credit cards until defined benefits and/or state pension kick in when I’m 65 or older? Until then, I have no verifiable income despite having resources of more than seven figures, no debt, no mortgage and a near-perfect credit score.



When you apply for a credit card, the lender won’t necessarily request verification of your income if you have a good credit record.

On your application there is no reason why you can’t state that you are retired, especially as the income you are drawing from your investments is more than someone receiving a state pension.

If the new card lender can see that you’ve managed your existing credit commitments well, it’s highly unlikely that they will request evidence of your income.

Some card providers insist you have a minimum income, typically £10,000, but all are more concerned that you are able to afford to repay any credit commitments, so will ask for basic details of income and expenditure.

Moneywise says: See our online rewards and cashback credit cards guide for our best buys.

Andrew Hagger is the founder of personal finance website out who our experts are on the Ask the Experts homepage.