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Is there a disadvantage to saying you are retired?

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NYC_Fella
Frequent Contributor

Is there a disadvantage to saying you are retired?

Title says it all. While I do some freelance work from time to time, I am retired for all practical purposes and have a decent retirement income (although it doesn't lend itself to complete documentation if requested). If I list myself as "Retired" on an application, will that (1) result in lower odds of acceptance and (2) automatically trigger a documentation request?


Message 1 of 11
10 REPLIES 10
DONZI
Established Contributor

Re: Is there a disadvantage to saying you are retired?

I don't think so.

 

I had a tidbit of credit report left and all card apps I've made since 2020, which represents all of my credit/charge cards (7 as of today) have been approved.

 

My income is kind of what I want it to be via investments and RMD from an IRA. I initially used $30k for income on apps as I'm pretty low maintenance and have no debts and covid limitations set in. My oldest and latest myFICO scores are in the sig.

 

I have one old account from 1988 lingering on 2 of my reports and never was on the other, and a paypal credit account that I spontaneously applied for back in 2006 I think.. so my history is thin too. But no baddies.

 

I wish that I'd have used more forward thinking on my credit long ago, I'd much rather have 2-3 thirty year old cards worth maybe a couple/few hundred thousand in credit. Still maybe can pull that off, but now the novelty of the dang rewards and cashback programs has kind of taken ahold. Smiley Wink

 

edit: and yes, all applications I've made as "Retired"

2014 credit2020 credit2021 credit2023 credit
paypal credit imagecredit card imagecredit card imagecredit card imagecredit card imagecharge card imagecredit card imagecredit card imagecharge card imagecharge card image
[2020-12-09]=[EQ8|786]-[TU8|746]-[EX8|772] .... gardening until I can't (again).
[2023-10-01]=[EQ8|797]-[TU8|776]-[EX8|775]
Message 2 of 11
NYC_Fella
Frequent Contributor

Re: Is there a disadvantage to saying you are retired?

Thanks, that's very helpful.


Message 3 of 11
DONZI
Established Contributor

Re: Is there a disadvantage to saying you are retired?

Glad it was helpful.


Just thought of something else, I've not had any requests for income verification or financial review.


Probably since I remain conservative on the income figure.


The credit limits I have are not huge but that isn't generally going to matter anyhow since if I need or want to transact large amounts I'm likely not going to use a credit card anyhow.

 

But... maybe on the platinum card, a car would be kind of nice to get the warranty doubled. lol


I have a platinum from schwab and amex knows there is more than reported income since I offered them net worth figures on the apps and the "Schwab Appreciation Bonus" can annually throw amex a bone similar to financial docs.


Four of my cards are at institutions which can look over what I have in their accounts, of the remaining 3 (2x amex and discover) only disco is blind to all but spend on their card and the reported income I provide.


Pretty safe I think in avoiding hassles.


If I were to ever want to just consolidate and not juggle cards I'd probably drop some financial info to amex and they can massage the NPSL as needed/allowed and cancel the other cards. Not quite that old yet though. Smiley Wink

2014 credit2020 credit2021 credit2023 credit
paypal credit imagecredit card imagecredit card imagecredit card imagecredit card imagecharge card imagecredit card imagecredit card imagecharge card imagecharge card image
[2020-12-09]=[EQ8|786]-[TU8|746]-[EX8|772] .... gardening until I can't (again).
[2023-10-01]=[EQ8|797]-[TU8|776]-[EX8|775]
Message 4 of 11
1GaDawg85
Valued Contributor

Re: Is there a disadvantage to saying you are retired?


@NYC_Fella wrote:

Title says it all. While I do some freelance work from time to time, I am retired for all practical purposes and have a decent retirement income (although it doesn't lend itself to complete documentation if requested). If I list myself as "Retired" on an application, will that (1) result in lower odds of acceptance and (2) automatically trigger a documentation request?


I am technically "retired" but that has never stopped any of my applications from being approved or requiring additional documents. 

 

and to clarify, I retired from the military due to medical issues after 10 years. I wouldn't worry about it if I were you.


FICO 5 ,4, 2 - 10/2023                            FICO 8 - 10/2023                                   FICO 9 - 10/2023                                   FICO 10 - 10/2023
     
Message 5 of 11
NYC_Fella
Frequent Contributor

Re: Is there a disadvantage to saying you are retired?

Thank you.


Message 6 of 11
KatSoDak
Frequent Contributor

Re: Is there a disadvantage to saying you are retired?

No disadvantage from what I can tell at all. Never been asked to prove income but not concerned if I need to. I think a fixed retirement income is as stable as a salary. 

 

Lots of new cards and CLIs since I retired but I keep utilization low and have no mortgage.

FICO 8:

EQ FICO 9 - 770
EX FICO 9 - 758

Citi (2) | Discover | HSBC | BOA | NFCU (2) | WF (2) | Simmons Bank | FNBO (2) | PENFED | BBVA | US Bank | Lowes | Care Credit | Home Depot AU
Message 7 of 11
SoCalGardener
Valued Contributor

Re: Is there a disadvantage to saying you are retired?


@NYC_Fella wrote:

Title says it all. While I do some freelance work from time to time, I am retired for all practical purposes and have a decent retirement income (although it doesn't lend itself to complete documentation if requested). If I list myself as "Retired" on an application, will that (1) result in lower odds of acceptance and (2) automatically trigger a documentation request?


I had to retire early due to illness, and I've never found it to be a problem as far as obtaining credit goes. I've never been asked for financial documentation or anything like that. Just be honest about your income/assets in case you do get asked for proof; that's what I do.

 

I wouldn't worry about it!

Amazon Prime Store CardAmerican Express Blue Cash Preferred CardAmerican Express Everyday CardBank of America Customized Cash VisaCapitalOne Quicksilver MastercardCapitalOne Quicksilver VisaCapitalOne Walmart Rewards MastercardChevron Texaco CardCiti Double Cash MastercardDiscover More CardJCPenney Gold MastercardOverstock.com CardSportsmans Guide Rewards VisaSynchrony Home Card
Message 8 of 11
finfree
Regular Contributor

Re: Is there a disadvantage to saying you are retired?

I'm 62 and semi-retired late last year. Recently I requested CLIs at BoA and Discover, in each case honestly disclosing the fact of my retirement and what my total current income is. Received increases from both without any issue even though my retirement income is roughly 40% of the income I reported when I got the cards. I was concerned about having to prove current income but it was not an issue. Both asked me how much of an increase I wanted;  I was relatively conservative in my ask, but am confident an even greater CLI increase would have been improved. FWIW, current FICO 8s are all in the 820+ range. 


Starting Score (October 7, 2010): EQ: 698 TU: 709
Interim Score: EQ (October 21, 2010): 714 TU (November 2, 2010): 732
More Recent Interim Score: (March 14, 2018- all FICO8): TU: 831: EQ: 824: EX: 827
Goal Score: 850 all

Message 9 of 11
FalconSteve
Valued Contributor

Re: Is there a disadvantage to saying you are retired?


@NYC_Fella wrote:

Title says it all. While I do some freelance work from time to time, I am retired for all practical purposes and have a decent retirement income (although it doesn't lend itself to complete documentation if requested). If I list myself as "Retired" on an application, will that (1) result in lower odds of acceptance and (2) automatically trigger a documentation request?


I'm in my 30s and disabled, which isn't usually an option, so I select retired (several banks told me to do this; disability and medically retired are treated the same). It never caused me problems. Most of my income comes from investments.

1/8/17 Discover $18300 CL- $1k SL- AU, wife
1/26/20 AmEx Cash Magnet $35k CL, wife
2/19/20 BB&T/Truist Rewards $11k SL- impulse application
2/22/20 Citi Double Cash WEMC $2.9k-->$4.4k-->$8.4k-->$13.4k-->$17.4k-->$19.4k-->$22.4k AU, wife
3/8/20 Wells Fargo Propel AmEx/Autograph VISA $2900-->$3200-->$5000-->$8800 CL- AU, wife
3/9/20 Truist Rewards $11k SL- AU, wife- impulse app
3/21/20 REDcard MasterCard (TD Bank) $2500-->$6000-->$6500 CL
11/24/20 AmEx Cash Magnet $10k SL-->36hr-->$20k-->$35k CL
6/10/21 SoFi World Elite MC (TBOM) $7000 SL
1/19/22 AppleCard/GS $6k-->$10k-->$11k AU, wife
8/15/22 Chase freedom flex $10.3k SL-->$12.5k-->$15k AU, wife
7/5/23 Lowes/Synchrony $4k-->$10k-->same day-->$35k CL
8/2/23 Chase freedom flex $19k --> $22.8 CL
8/2/23 Discover $8k SL
Message 10 of 11
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