Retired with no income

JPWiggy

I have used credit card stoozing for many years, but I now find I have to provide details of income, whereas not so long ago companies would accept the details entered on the application. Is this a new credit check? The problem I now have is that I am retired but not yet drawing a pension, so I have no income. Does this prevent me from getting balance transfer or 0% spending cards?

GeordieGeorge

It may well do, yes. Companies who you want to borrow money from need to know that it will be repaid, and to cater for most situations they’ll ask about salary, not whether you have savings that you can use to pay them back.

[Deleted User]

Post covid and responsible lending world, enhanced credit checks and such are needed. I suspect with the terrible interest rates at the moment, paying down your debts ahead of retirement isn't a bad idea

zzyzx1221

Deleted_User said:

Post covid and responsible lending world, enhanced credit checks and such are needed. I suspect with the terrible interest rates at the moment, paying down your debts ahead of retirement isn't a bad idea

I'd say it's more a post-personal responsibility world than anything.  Given how many subprime lenders have been raked over the coals for the mortal sin of believing what people put on their applications forms it's perhaps not surprising that the prime lending world is worried that someone is going to start a reclaiming bandwagon against them for doing the same thing.

[Deleted User]

zzyzx1221 said:

Deleted_User said:

Post covid and responsible lending world, enhanced credit checks and such are needed. I suspect with the terrible interest rates at the moment, paying down your debts ahead of retirement isn't a bad idea

I'd say it's more a post-personal responsibility world than anything.  Given how many subprime lenders have been raked over the coals for the mortal sin of believing what people put on their applications forms it's perhaps not surprising that the prime lending world is worried that someone is going to start a reclaiming bandwagon against them for doing the same thing.

Responsible lending is an FCA ruling particularly in regards to credit cards 

Sandtree

I can't remember apply for a card in the last decade where I didn't have to give income details.

If you have no income at all what are you actually living on? Are you living on the income from your savings or are you using up your savings or ... ?

[Deleted User]

Sandtree said:

I can't remember apply for a card in the last decade where I didn't have to give income details.

If you have no income at all what are you actually living on? Are you living on the income from your savings or are you using up your savings or ... ?

I suspect OP means that they are being asked for proof of income, not just stating their income on an application. I have never had to provide proof of income for a card, the latest in December albeit that was from my bank who could see my income in the current account I guess

phillw

Deleted_User said:
I have never had to provide proof of income for a card,

I think they mostly validate it against what you said your income was the last time you applied.

If you start putting £0 for income on credit applications, then I can imagine that the computer system flags that up and they will want further details.

[Deleted User]

phillw said:

Deleted_User said:
I have never had to provide proof of income for a card,

I think they mostly validate it against what you said your income was the last time you applied.

If you start putting £0 for income on credit applications, then I can imagine that the computer system flags that up and they will want further details.

Sure but OP is being asked to provide proof of income so doubt he has put 0 as they'd just refuse the application, more likely has put income from savings or whatever and that is what the bank want proof of.

lisyloo

Deleted_User said:

phillw said:

Deleted_User said:
I have never had to provide proof of income for a card,

I think they mostly validate it against what you said your income was the last time you applied.

If you start putting £0 for income on credit applications, then I can imagine that the computer system flags that up and they will want further details.

Sure but OP is being asked to provide proof of income so doubt he has put 0 as they'd just refuse the application, more likely has put income from savings or whatever and that is what the bank want proof of.

Why is it not possible to provide proof of savings income?

ratechaser

lisyloo said:

Deleted_User said:

phillw said:

Deleted_User said:
I have never had to provide proof of income for a card,

I think they mostly validate it against what you said your income was the last time you applied.

If you start putting £0 for income on credit applications, then I can imagine that the computer system flags that up and they will want further details.

Sure but OP is being asked to provide proof of income so doubt he has put 0 as they'd just refuse the application, more likely has put income from savings or whatever and that is what the bank want proof of.

Why is it not possible to provide proof of savings income?

Because you could go and blow it all at the casino rather than have a steady monthly stream...

I do however think that the industry may need to adopt a more flexible approach going forward - historically you'd either have earned income or an annuity/state pension at retirement. Now however people are doing drawdown and other less 'fixed incomey' type things with their money when they retire. I will probably be one of them. 

So while I'll probably make sure I'm set up with all the income dependant financial products I want just before I retire, I don't want to be hamstrung later down the line just because I have large assets but no traditional regular/fixed income stream.