Retirees With Strong Credit Scores Face Rejections From Retail Credit Cards Over Income Reporting

Retirees with excellent credit scores and substantial assets are increasingly being denied retail credit cards because issuers' underwriting models prioritize reported income over total financial resources, MarketWatch reported on Sept. 23, 2026. A retiree with a pension covering daily expenses, a Roth IRA, a traditional IRA and a paid-off home said a store card application was rejected despite an 825–850 credit score. Credit-card applications ask for income but do not account for employment status or assets held in savings and investments, making retirees appear lower-income than their actual capacity to pay. Retirees may legally estimate income by including pension, Social Security, investment returns and projected 12-month IRA or 401(k) withdrawals. Payment history remains the dominant scoring factor. Retail cards typically carry higher APRs and fees than standard cards. U.S. credit-card debt has reached a record $1.26 trillion, with the average balance at $6,600 and rates at 20% or higher, according to the report.