Can You Get a New Credit Card When You're Retired?

We think of retirement as a time of financial freedom, but it brings plenty of new financial challenges as well. All of a sudden, you're living on a fixed income, and you have to make your money last for an indeterminate amount of time. You find yourself asking questions you hadn't considered before.

Changing spending habits might create a need for a new credit card in your wallet, but can you even get a new card without a job? Fortunately, the answer is yes, but there are a few things you should know before applying for one.

Do you need a new credit card?

First things first, it's worth thinking carefully about whether you actually need a new credit card in retirement. All the credit cards you already have will still work, so you probably won't be starting from zero. If you're content with the cards in your wallet, you can carry on as normal.

But there are a few reasons you may want an extra card. If you don't have access to any credit, you may want one so you can earn rewards and put a little distance between your purchases and payments. If you only have one card, you might like the idea of having a second so you have a backup in case your primary card is lost or stolen.

You might also want a new credit card to help you maximize your rewards if your spending habits are changing. For example, those who plan to travel a lot in retirement could benefit from a travel rewards credit card. This could earn them perks like free airfare and checked bags or free hotel stays that a cash back rewards card wouldn't offer.

Can you open a new credit card when you're retired?

Credit card issuers look at your income when considering your credit application to determine whether you're likely to be able to pay back any money you borrow. This doesn't change once you retire. Fortunately, a salary from a 9-to-5 job isn't the only thing that counts.

You can also report income from part-time, freelance, or seasonal work as well as withdrawals from your retirement accounts and Social Security benefits. Earnings from investments, like dividends, count too.

Those in relationships, whether married or otherwise, can also report income their partner makes as long as they're at least 21 and have a reasonable expectation of access to those funds. Basically, if you believe you could use your partner's earnings to pay your credit card bills if you had to, you can count it on your credit card application.

How do you open a credit card when you're retired?

Other than reporting different types of income, applying for a credit card in retirement is the same as applying for one at any other point in your life. First, you have to choose the credit card you want. The card's perks play a big part in this, but so does your credit score.

Credit card issuers don't reveal the credit score you need to have to get approved, but most cards require at least a score of 670 or higher. There are cards open to those with poor credit, though.

Once you've found one you're interested in, fill out the application form online. You'll need to provide your name and contact information as well as your Social Security number, so the card issuer can check your credit report. This is also when you'll report your income. You don't need to break down how much comes from which sources. Just give your total estimated annual income.

Most of the time, you'll get an answer as soon as you've submitted your application form. But in some cases, the credit card issuer can take up to 30 days to review your application before making a decision.

If you're approved, the credit card issuer will send you a new card in the mail, usually within a few business days. You can begin using it right away. If you're denied, you should get a letter explaining why. You might be able to appeal a denial, but if not, you'll have to explore other credit card options until you find one willing to work for you as a retired spender.