Can I get a credit card if I am a pensioner?
Credit cards can be a useful tool to help manage your finances, but can you still get one when you retire? Our guide looks at what might be available and whether pensioners are likely to receive a good deal.
Key takeaways
Pensioners can benefit from credit cards with features such as rewards, protection on purchases and flexible spending
No official maximum age, but approval depends on income and credit history
Your credit limit and card’s interest rate will be assessed on your individual financial situation
What is a pensioner’s credit card?
There isn’t a specific pensioner’s credit card, but many credit card providers offer products that are well-suited to those in retirement.
As with all credit cards, you’ll be able to borrow money up to a set credit limit and must pay it back within a certain timeframe to avoid interest charges.
Credit cards suitable for pensioners on fixed or lower incomes might have lower credit limits, but still offer features such as cashback on everyday purchases.
If used responsibly, they can offer financial flexibility and help cover unexpected costs. But always make sure to check the terms and conditions to avoid high interest rates and hidden fees.
What are the pros and cons of getting a credit card in retirement?
Credit cards in retirement come with advantages and disadvantages. These include:
Financial flexibility: Credit cards offer immediate access to funds, helping cover unexpected expenses or emergencies
Building credit history: Responsible use can enhance credit scores, useful for future borrowing – including getting better deals on future credit cards
Rewards and discounts: Some cards offer cashback, discounts on purchases, or travel perks, meaning you can take advantage of your own spending
Consumer protections: Cards often provide purchase protection and fraud coverage, safeguarding against unauthorised transactions, damaged goods, or services that don’t materialise
Interest charges: High APRs can accumulate quickly if balances aren't paid off monthly
Debt risk: Easy access to credit may lead to overspending beyond means, potentially increasing debt
Age-related eligibility: Some cards may have age restrictions or require proof of income, limiting access
Impact on credit score: Late payments or high credit utilisation can negatively impact credit ratings, affecting future borrowing opportunities
Advantages
Disadvantages
Is there an age limit to getting a credit card?
There is no maximum age limit for obtaining a credit card in the UK. However, older applicants, particularly those over 75, may face challenges.
Banks often assess applications based on income and recent credit history. Retirees with limited income or a lack of recent borrowing activity may find it harder to get approved.
How likely am I to be accepted for a credit card as a pensioner?
According to our latest data,71%[1]of credit cards enquiries from retired individuals were pre-approved. However, the change in your financial circumstances after retiring can affect your chances of being approved for a credit card.
Use our eligibility checker before you apply for a credit card
How much can I borrow if I am a pensioner?
As a pensioner, your credit card credit limit is based on a few key elements:
Lenders look at your pension income and any other earnings to decide how much you can borrow.
A strong track record of managing credit boosts your chances of a higher limit.
If you already owe money elsewhere, it might reduce the amount you're offered.
Banks want to be sure you can comfortably manage repayments, so they assess your overall financial situation.
Income
Credit history
Existing debts
Affordability checks
Being a pensioner doesn't automatically mean you’ll get a lower credit limit than someone who is working because each application is assessed on its own merits. Manage the card well, and your provider may offer to increase your credit limit over time.
Can I get a pensioner’s credit card if I have bad credit?
You can still get a credit card as a pensioner even if you have bad credit, but you might face higher interest rates and a lower credit limit.
You’re more likely to be accepted for a specialist credit builder card – designed for people with poor or limited credit histories.
These cards give you a chance to prove you can manage credit responsibly and build your credit score over time.
A credit builder card typically provides:
Lower initial credit limits: Around £200-£500 to start, for example
Higher APRs: But if you pay your balance off in full each month, you can avoid paying any interest
Because a credit card application can leave a mark on your credit report, it’s best to use an eligibility checker first. This will show you your chances of being accepted for a credit card without harming your credit score.
How can I improve my credit rating if I am a pensioner with bad credit?
Turning your credit score around is possible, even if you are retired, and can open the door to better credit card deals in the future. Take the following steps:
Always pay your bills, credit cards, and loans on or before the due date. Late payments can drag your score down.
Try to use less than 25-30% of your available credit so it doesn’t look like your finances are stretched.
Being on the electoral register at your current address can give your score a quick and easy boost.
Every credit application leaves a mark on your file. Space them out and use eligibility checkers before you apply.
Clear your full credit card balance each month. If you can’t manage this, paying more than the minimum still shows you're serious about managing your debts.
Make payments on time
Stay within your credit limit
Register on the electoral roll
Avoid multiple applications
Pay more than the minimum
Improving your credit score won’t happen overnight, but if you consistently ingrain good financial habits you will start to see progress.
What happens to my credit card if I die?
While it’s a sensitive topic, it’s important to know what usually happens when a credit card holder passes away:
Once the lender is notified of the death, they’ll freeze the account to stop any further use
Any outstanding balance becomes part of your estate (your money, property, and possessions) and will need to be repaid from it before anything is passed on to your heirs
It’s not possible to take out a joint credit card in the UK, so your family won’t have to pay off your debts personally.
The executor (person handling your estate) will work with the credit card company to settle any outstanding balance
It’s a good idea to let your loved ones know where you keep details of your financial accounts because it makes the process a lot smoother when the time comes.
Our guide to managing debts after you die can help further with this.
What are the alternatives to credit cards for pensioners?
If a credit card isn’t the right fit, there are other ways to manage your money. Here are some top alternatives:
Debit cards only allow you to spend what you have in your bank account. The advantage being there is no borrowing and no interest charges.
Load money onto the prepaid card in advance, great for budgeting and avoiding overspending
Borrow a lump sum with fixed monthly repayments with a personal loan, often with lower interest rates than credit cards.
Use your bank account’s agreed overdraft facility for short-term borrowing, but watch out for fees and interest.
Spread the cost of purchases interest-free if you pay within the agreed timeframe with a BNPL agreement. Can work well for larger buys if managed carefully.
Build a cash buffer for emergencies with a savings account so you’re less reliant on borrowing when unexpected costs crop up.
Debit cards
Prepaid cards
Personal loans
Overdrafts
Buy Now, Pay Later (BNPL)
Savings accounts
Is it a good idea to get a credit card as a pensioner?
It can be, but it depends on your circumstances. A credit card can give pensioners flexibility to cover unexpected costs, spread the cost of big purchases, and even boost your credit score if managed well.
Credit cards also offer extra protections on purchases over £100, giving you extra peace of mind.
But it’s important to be careful, particularly if you’re on a tight budget. Carrying a balance can mean high interest charges, and overspending could quickly lead to debt problems.
Personal Finance Expert
Our expert says
The number of benefits of a credit card, from protection on purchasers to cash back and perks, mean that they shouldn’t just be restricted to people in the workforce. Pensioners, like everybody else, just need to be aware of their financial situation and always have the means to pay off any balance they build up.
Compare credit cards for pensioners with MoneySuperMarket
If you’re looking for a credit card, then MoneySuperMarket can help you compare deals from leading providers across the market so you can be confident to pick the best deal for your needs.
We’ll show you the key features for each card, so whether you’re looking for cashback and rewards, 0% interest on spending or to move a debt from elsewhere, you can make an informed decision.
Our eligibility checker will show you your chances of being accepted for each deal without leaving a mark on your credit score, so you can apply for the right cards and limit the risk of being rejected.