Credit Cards Center Credit cards from our partners
Reply
Member
Posts: 14
Registered: ‎12-19-2009
0

How do banks know your income?

A few months ago I applied for another credit card at my bank.  A few weeks later I got a letter saying that the amount of available credit was decreased so that it was in line with my income.  I know that this is quite common.  My question is, how does a bank (in this case BofA) know your income?  My income has changed over the years so I want to make sure that my bank makes decisions off my current income and not something reported five years ago.
Regular Contributor
Posts: 237
Registered: ‎08-02-2009
0

Re: How do banks know your income?

I would assume they may be checking your deposits (if you use them for a checking / savings as well).  Then again, a lot of people nowadays split their pay between accounts.


EQ (11/16/2007): 573

Starting Score (1/1/2010): EQ: 712 -- TU: 726
Current Score: EQ: 748 (12/22/11) -- TU: 726 (1/7/10) -- TU04: 701 (1/27/10) -- EX: 747 (1/27/10) (LO)
Goal Score: EQ: 760


Take the FICO Fitness Challenge
Member
Posts: 14
Registered: ‎12-19-2009
0

Re: How do banks know your income?

That doesn't seem right.  I don't think you can deduce someone's income by how much they deposit into a particular account.  If that is the case then BofA would think that I have zero income since I deposit my paychecks at another bank.
Epic Contributor
Posts: 25,801
Registered: ‎10-23-2007
0

Re: How do banks know your income?

Bank of America is acting like American Express did a year-two years ago... just find a better bank, the way they are treating there customers they deserve to go BK.
Fico Scores 8: EX 694. TU 689. EQ 658. 05/26/2015
Valued Contributor
Posts: 1,072
Registered: ‎02-15-2009
0

Re: How do banks know your income?


ficoChanger wrote:
A few months ago I applied for another credit card at my bank.  A few weeks later I got a letter saying that the amount of available credit was decreased so that it was in line with my income.  I know that this is quite common.  My question is, how does a bank (in this case BofA) know your income?  My income has changed over the years so I want to make sure that my bank makes decisions off my current income and not something reported five years ago.

They'll get that from you when you app ey?

 

I believe theres no particular way that they'd know (legally) about your income unless you tell them.

 

You could call and let them know your current income.

Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
0

Re: How do banks know your income?


ficoChanger wrote:
A few months ago I applied for another credit card at my bank.  A few weeks later I got a letter saying that the amount of available credit was decreased so that it was in line with my income.  I know that this is quite common.  My question is, how does a bank (in this case BofA) know your income?  My income has changed over the years so I want to make sure that my bank makes decisions off my current income and not something reported five years ago.

 

Didn't BoA ask what your income was when you applied for credit?  Generally most applications ask what your personal or household income is.

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Member
Posts: 14
Registered: ‎12-19-2009
0

Re: How do banks know your income?

They might have asked me when I applied for my first card, but that was several years ago when I was making much less.  When I applied for a second card recently, I was just in a branch office doing some banking.  I asked if I could apply for an AMEX card and they said sure and handled the paperwork for me.  I don't think they asked me about my income.  So if they are using my income information from a few years ago then they will be way off.  I will go to my local branch and make sure they have my correct information before I attempt any type of CLI online.
Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
0

Re: How do banks know your income?

Four standard questions on every computer entered BofA credit application and CLI request:

     1) Occupation,

     2) Salary,

     3) Housing Payment, and

     4) Other income.

 

(I saved a screenshot of my last CLI request.) 

Frequent Contributor
Posts: 449
Registered: ‎02-21-2009
0

Re: How do banks know your income?

Not only can your bank figure out what your income is, but starting in February credit bureaus like EQ, EX and TU may use your estimated income to determine your credit worthiness when you apply for new credit cards.

 

http://articles.moneycentral.msn.com/Banking/YourCreditRating/look-who-is-peeking-at-your-paycheck.aspx

 

 

TU - 737 - 02/21/09, 769 - 02/06/10, 795 - 09/08/10
EQ - 758 - 02/21/09, 783 - 02/06/10, 805 - 09/08/10
EX (PLUS) - 781 03/23/09, 787 - 02/06/10, 783 - 08/09/10
Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
0

Re: How do banks know your income?

They may use (and do use) such estimates right now. They must consider your ability to pay (which could include estimates of income or assets) after 22FEB2010.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.