topic How does retirement income affect CC apps?? in Personal Finance

How does retirement income affect CC apps??

veracious — Wed, 28 Apr 2010 21:16:29 GMT

Hi, everyone. New poster,but I've been reading and learning for awhile.

My question is, how does retirement income affect the chances of approval when seeking new credit?

If I'm asked to provide income verification,will this new employment status be updated in my personal

information with all three CRA's? I don't presently have any open CC's accounts, they were closed by grantors.

Except for an open car loan,everything is paid in full, and showing paid as agreed.I do have 3 lates from 2008 on a Chase card.

Am I still creditworthy?

Thanks.

Re: How does retirement income affect CC apps??

RobertEG — Thu, 29 Apr 2010 07:40:41 GMT

Hi veracios, and welcome. CRAs dont record your income, and FICO does not score based on income.

Credit approval is at the discretion of the creditor.

In making any credit approval decision, the creditor, of course, assesses riisk.

In assessing consumer risk, they have to spend money. For relatively low balance loans and extensions of revolving credit (i.e., credit cards), they spend the money to pull your FICO score. That may be all they want to see, and may deny or grant based only on your FICO score. But they know that FICO scoring does not look at income, total debt, or total assets, etc. FICO is just an assessment of your repayment risk, not your financial stability.

So as the loan/principal/CL goes up, so does their potential risk, and so they may want more. They may request your income, time at current residence, and even for high-end loans, such as mortgage applications, a full disclosure of all assets and liabilties, spousal income, etc. None of these are part of FICO scoring. But that does not mean they wont be part of a credit grant decision.

Re: How does retirement income affect CC apps??

veracious — Thu, 29 Apr 2010 16:05:01 GMT

Thanks, Robert EG.

I guess I'll just have to wait and see how "RETIRED" looks on my credit report personal info page.

Re: How does retirement income affect CC apps??

MarineVietVet — Thu, 29 Apr 2010 16:16:05 GMT

@veracious wrote:
Thanks, Robert EG.

I guess I'll just have to wait and see how "RETIRED" looks on my credit report personal info page.

From personal experience I can tell you that it looks wonderful!!!

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
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Re: How does retirement income affect CC apps??

Imhotrodcrazy — Fri, 30 Apr 2010 00:58:15 GMT

EX reports my employment status as "retired", and it has absolutely no affect on getting credit. If they ask, I just report my "retirement" income along with documentation as you would with any other type of income. You won't have a problem.

Re: How does retirement income affect CC apps??

cashnocredit — Sat, 17 May 2014 02:38:12 GMT

Being retired is not considered a risk factor. I retired over 10 years ago and had no credit 5 years ago. They do consider income so make sure you include all income such as pensions, SS, interest and dividends.

My reports don't say retired, but they have no current or past employer listed either. It's just blank. I recall that when I hit up Chase for a large CLI they asked how long ago I retired and I said 10 years. Next comment was "approved." I think they asked because most people who are retired still have prior employers listed and nothing at all there is unusual.

Re: How does retirement income affect CC apps??

Anonymous — Mon, 26 May 2014 04:31:58 GMT

I would think with a recon or in other ways speaking with a live person, you could certainly bring up your retirement fund assuming it's favorable. Doesn't hurt to ask!