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In two posts now, someone is asking about obtaining credit one way or another without current work or a short work history. Doesn't employment history(along with income) figure into the approval of new or different credit ?

(Retirement is a whole other ball game and I do know how that works).
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In two posts now, someone is asking about obtaining credit one way or another without current work or a short work history. Doesn't employment history(along with income) figure into the approval of new or different credit ?

Work history can impact a lending decision. What's most important is that you have verifiable current income that's expected to continue. Many lenders will take confirmed work history of at least 2 years in the same industry or the same employer as an indicator that the income should continue. (Whether that's a good decision or not is debatable.) For those currently without work, or who are on a short term contract, the lender is likely to require some other assurance that they will get paid, like a lower LTV level on a house for an equity loan.

AJ
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(Retirement is a whole other ball game and I do know how that works).

We worried about that when we retired 13 years ago. DH has a pension so there is income so we might not be the typical retiree. Our credit scores have remained in the 800's. We did finance our vehicle in 2016 only because they offered 0 percent interest. This worked for us two fold. We could keep the cash and use it to make more income by investing and it kept us with a good payment record.

Utahtea
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For those currently without work, or who are on a short term contract, the lender is likely to require some other assurance that they will get paid, like a lower LTV level on a house for an equity loan.

It has been difficult for those working on contract to obtain mortgages.
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One of my friends had trouble getting a mortgage even with regular retirement income and assets more than sufficient to cover the payments because he didn't have a record of 24 months consecutive payments on anything. He'd been out of the country so didn't have any bills while he was gone. He ended up buying the house for cash.
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(Retirement is a whole other ball game and I do know how that works).

Social Security and other traditional pension income are reliable income. I don't know how RMDs and retirement plan distributions are used for income calculations.

My credit cards have asked about updating income for a "possible higher credit limit". I have been avoiding the questions because our income is chaotic between ROTH conversions and other irregular income.
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I don't know how RMDs and retirement plan distributions are used for income calculations.

Regular distributions from IRAs and/or other retirement plans are what matters. It doesn't matter if the distributions are RMDs or not. Just showing that you take out money as needed generally doesn't work.

The plan administrator(s) needs to confirm that you have regular distributions of at least the amount of income needed to qualify for the mortgage, after considering all other income. Monthly distributions are better, but quarterly or annual distributions will do, as long as you have statements showing the distributions have been made. You generally need at least one statement showing a distribution, but some lenders like to see 2 distributions.

That said, there's nothing stopping you from cancelling or changing the distributions once you close.

AJ
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