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Re: Do YOU exaggerate your income when applying?


DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.



I am more than willing to bet Income plays a good part.. NOT in being approved but in the Line of credit you are given..If you have two people with perfectly identical credit reports... and one person makes 20k annually and the other makes 90k annually, the person who makes more is going to get a bigger CL...

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Re: Do YOU exaggerate your income when applying?

Well, what constitutes income?

 

Well, wages and other regular sources of funds are clearcut. Others, not so much.

 

If you sell your home and make 100k does that add 100k to your income even though the IRS doesn't consider it income?

If you sell a rental home and make 100k on it does that count? The IRS will count it though so from an IRS POV you have an extra 100k in income.

 

 

I have used a variety of "incomes" and, being retired, who knows what the proper thing to do is. Do I include only regular, month after month income such as SS, interest, rent, dividends? Do I include gains on stocks I sell (gross capital gains)? Do I subtract losses on stocks I sell (gross capital losses)?

 

In my case I use an income that is more than the regular, completely predictable, streams but less than the lowest of the last three years IRS AGI. Is that the correct thing to do? Hell if I know.

 


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Re: Do YOU exaggerate your income when applying?


Tommy5746 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.



I am more than willing to bet Income plays a good part.. NOT in being approved but in the Line of credit you are given..If you have two people with perfectly identical credit reports... and one person makes 20k annually and the other makes 90k annually, the person who makes more is going to get a bigger CL...


 

Agree... but also it would be hard to pay bills and stay alive on 20k annually. Like davesignal indicated... the lender wants to see enough income and a smallish debt to income ratio to assure that you actually have discretionary income with which to pay the bill

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Re: Do YOU exaggerate your income when applying?

What's "FR"?

 

I've done it with Capital One, but who cares about them anyway. Lol. Would I do it again? Maybe, but nothing exaggerated of course, minimal difference at best. And I would also definitely pick and choose, who I would do that with. I believe income matters.

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Re: Do YOU exaggerate your income when applying?


WarJar101 wrote:

What's "FR"?

 

I've done it with Capital One, but who cares about them anyway. Lol. Would I do it again? Maybe, but nothing exaggerated of course, minimal difference at best. And I would also definitely pick and choose, who I would do that with. I believe income matters.


FR=Financial Review. They as for IRS filings and possibly stubs, bank statements and such. AMEX is well known for it. Others do it but much less frequently.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

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Re: Do YOU exaggerate your income when applying?

i'm pretty sure your income matters in determining the credit limit you given, as banks would use it determine how well you'd be able to repay the "loan" in credit they are granting you. 

 

I would NOT embellish your income whatsoever because it is fraud, and according to the law, you could be fined, and worse: you could see some serious jail time!  Not worth ruining your life over $2000 difference in income...

 

Only put down what you can prove if ever asked (i.e. your most recent paystub)

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Re: Do YOU exaggerate your income when applying?

[ Edited ]

Tommy5746 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.



I am more than willing to bet Income plays a good part.. NOT in being approved but in the Line of credit you are given..If you have two people with perfectly identical credit reports... and one person makes 20k annually and the other makes 90k annually, the person who makes more is going to get a bigger CL...


I agree with this; with the CARD act and the mandate that the consumer must have the ability to repay, it's simple math that someone making 100K per year can pay back a higher balance than someone only making 10K per year.

 

It's one thing when we're talking toy limit cards, but when you start talking about 5K tradelines, it can be a factor, and certainly when it comes to 10K or 25K credit cards.

 

I don't know where the break point is for each tier, but there has to be some reasonable algorithm they've come up with that, and as a result there's got to be an income requirement somewhere when it comes to CL's.

 

Personally I only claim the income I can easily prove, in this case my one job that has pretty ADP paystubs, but that winds up being a large underrepresentation of what I actually claim on my tax returns.  Admittedly it might be different if that income level were 30K, but if what I can easily prove is enough for the CL's I'd ever care about, I don't see the point of disclosing my full financial assets, only my full financial responsibilities.

 

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Re: Do YOU exaggerate your income when applying?


cashnocredit wrote:

WarJar101 wrote:

What's "FR"?

 

I've done it with Capital One, but who cares about them anyway. Lol. Would I do it again? Maybe, but nothing exaggerated of course, minimal difference at best. And I would also definitely pick and choose, who I would do that with. I believe income matters.


FR=Financial Review. They as for IRS filings and possibly stubs, bank statements and such. AMEX is well known for it. Others do it but much less frequently.


I think AMEX only really asks for Financials if you send them red flags.. A red flag being you put down you make 20k annually yet you run 15k through the card... thats an immediate red flag... So, be smart everybody!

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Re: Do YOU exaggerate your income when applying?


Revelate wrote:

Tommy5746 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.



I am more than willing to bet Income plays a good part.. NOT in being approved but in the Line of credit you are given..If you have two people with perfectly identical credit reports... and one person makes 20k annually and the other makes 90k annually, the person who makes more is going to get a bigger CL...


I agree with this; with the CARD act and the mandate that the consumer must have the ability to repay, it's simple math that someone making 100K per year can pay back a higher balance than someone only making 10K per year.

 

It's one thing when we're talking toy limit cards, but when you start talking about 5K tradelines, it can be a factor, and certainly when it comes to 10K or 25K credit cards.

 

I don't know where the break point is for each tier, but there has to be some reasonable algorithm they've come up with that, and as a result there's got to be an income requirement somewhere when it comes to CL's.

 

Personally I only claim the income I can easily prove, in this case my one job that has pretty ADP paystubs, but that winds up being a large underrepresentation of what I actually claim on my tax returns.  Admittedly it might be different if that income level were 30K, but if what I can easily prove is enough for the CL's I'd ever care about, I don't see the point of disclosing my full financial assets, only my full financial responsibilities.

 


Well said my friend

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Re: Do YOU exaggerate your income when applying?

No...I don't! Here's how I see it: 1. (Personally) I think it's dishonest. 2. They can (though rarely) verify income. 3. If they think my true income doesn't support my current credit profile in addition to what I'm applying for, they'd be doing me a favor by denying credit. After all, they are trying to make money and denial would mean one less customer for them!

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