Annual Household Income

[EaglesFan2006]

Does a note saying something like "If you are 21, you may use income from others that you have reasonable access to pay bills" an indication that you can include household income (Ie you and a spouse)?  If so, how do CCs plan on looking at that when evaluating?

[takeshi74]

I've never seen anything that specifically stated that other income could be included for a speciific age but whatever they say is what goes.

Keep in mind that you may have to provide evidence if it comes under scrutiny.  Consider what you can provide.

[coldnmn]

From what I have read on here according to the credit card act you can not use household income. You can only use personal income. They are trying to change the law. As far as I know it hasn't changed yet.

[mountainmom]

I was thinking it had changed?

It is an interesting question. I'm curious as my husband's scores are about 60 points higher than mine but my income is 2x more.

Capital ones website under cli said something to the effect you can use spouse if you share the income ie is deposited into joint account.

However when we were going to app him fir discover it the online Rep said only if in a community property state. So ??

[toppers555]

It depends on the state. here in WI you use household, but I personally nly use my income.

[too-much-time]

I don't think you can use the full household income unless explicitly specified. But I do think you can use half the household income as your individual income if you live in a community property state.

Added: Forgot all about the revised rule! ("reasonable expectation of access" ("account holder") to household income.)

Household Income Will Be Permitted Again on Credit Card Applications

Household Income Rule Will Help Stay-at-Home Spouses and Partners

[EaglesFan2006]

I agree, I think it's vague unless the words "Household Income" are stated.  However, I think the wording i mentioned above indicates that you can use it... but I'm not sure. 

I wonder what the benefits of doing so really are though regardless.

[coldnmn]

I did a search on google it states on the credit card act of 2009 houshold income can't be used for a stay at home with no personal income unless filing jointly. The credit card act of 2013 doesn't mention it. In searching it wasn't the intent of the legislature to do this to the stay at home spouse. But I can't find anywhere where they made changes. I'm not saying changes haven't been made I just can't find any. The credit card act of 2013 became effective Oct 1st.

[jenn_bar]

When I set my mom up with her CC, Chase and AMEX let her put their household income because they file jointly.

[cashnocredit]

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.

http://files.consumerfinance.gov/f/201304_cfpb_credit-card-ability-to-pay-final-rule.pdf

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.

Note that this allows lenders to set stricter requirements if they wish. If they wanted to they could simply not lend to people under 21 y/o no matter their income or require IRS tax returns from every applicant. They don't because it would not be a smart business decision.

As for ambiguous "Income" application requests, it is a well established legal rule that ambiguity shall be interpreted in favor of the persons that didn't write the agreement.