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How does retirement income affect CC apps??

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veracious
Established Contributor

How does retirement income affect CC apps??

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.

 

_________________________________________________
"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi
Message 1 of 7
6 REPLIES 6
RobertEG
Legendary Contributor

Re: How does retirement income affect CC apps??

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.

 

Message 2 of 7
veracious
Established Contributor

Re: How does retirement income affect CC apps??

Thanks, Robert EG.

 

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

_________________________________________________
"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi
Message 3 of 7
MarineVietVet
Moderator Emeritus

Re: How does retirement income affect CC apps??

 


@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.Smiley Very Happy


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

 

 

 

 

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

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Message 4 of 7
Imhotrodcrazy
Valued Contributor

Re: How does retirement income affect CC apps??

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.  

 

FICO 08
TU 842 12/8/18
EX 840 12/29/18
EQ 842 12/8/18
(NASA 30K) ( Amex 44k ) ( Freedom 10.6K ) ( US Bank Cash+ 20k, LOC 15k ) Winners never quit, and quitters never win
last app 2/15
Message 5 of 7
cashnocredit
Valued Contributor

Re: How does retirement income affect CC apps??

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.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Message 6 of 7
ptilda
Established Contributor

Re: How does retirement income affect CC apps??

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!

My Wallet:Fidelity Amex $1K, DCU $3.9K, US Bank AeroMexico $300, Quicksilver $1.3K, Cap1 secured MC $750, DiscoverIT $200, Care Credit $5K, Sportsman Guide Visa $3K, Kay $3K, Jared $3K,American Airlines CC $3K, Amazon $2.9k, Walmart $2.2k, Macy's $800 revolving/$5k furniture, Comenity retail cards $5.55kStarting Score: 618Current Score: 711
Message 7 of 7
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