A retired applicant says he expected a store-card denial because his credit reports were frozen. Columnist Quentin Fottrell says retirees can report pensions, Social Security, investment returns and estimated IRA or 401(k) withdrawals as income.
Fottrell says retail-card issuers use their own underwriting standards and may decline applicants with modest income. A strong credit score does not guarantee approval; issuers also consider payment history, income, expenses and balances on other cards.
A credit freeze limits authorized access to reports and can complicate approval. Experian says freezes can be activated or deactivated for free, but each bureau must be contacted separately. Store cards also tend to have higher interest rates and fees than regular cards.
