11-16-2012 05:44 PM - edited 11-16-2012 05:52 PM
Old post, but I thought I would provide insight as I have noticed confusion in the forums about qualification and income requirements. The Card Act did alter the truth in lending act with a provision called the Ability to Pay Requirement. This means creditors have to compare your individual income (except in the state of WI where household income can be used) to your overall obligations on the CBR. If you get a positive number it means we can approve you for a card or a CLI. No additional documentation is required by the act -- that is for the lender to decide. So be sure to include all sources of income including earned income, rental income, investment income, etc... and if your trying to get away with using household income to qualify just don't say its household income -- otherwise lenders would not be compliant if they use it.
Here is more information on the Ability to Pay otherwise referred to as Regulation Z: http://www.bankersonline.com/regs/226/226-51.html
07-01-2013 03:52 PM
I downloaded this file and read through it; this is great information to have! Thank you for posting it!
08-31-2013 09:17 PM
This needs to be updated.
The CFPB, which produces the regulations for interpreting Regulation Z, has eliminated the requirement that only individual income is considered and expanded the allowable income rule to include that which a consumer reasonably has access to for those over 21 years of age.
The final rule amends Regulation Z to remove the requirement that issuers
consider the consumer’s independent ability to pay for applicants who are 21 or older, and
permits issuers to consider income and assets to which such consumers have a reasonable
expectation of access.
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