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How do they verify income when you apply for a credit card?

Valued Member

How do they verify income when you apply for a credit card?

If you apply for a credit card and they only have access to your credit file how do they have any idea if a person is telling the truth about their income.  

 

If someone has great credit but an income of 60k and another has great credit with income of 200k wouldnt they get approved at very different credit limits?  

 

Thanks 

Message 1 of 20
19 REPLIES
Senior Contributor

Re: How do they verify income when you apply for a credit card?

yes, they could possibly get approved for different limits.

 

they can verify your income by asking you to submit financial records, like your bank statements.  so don't lie on your applications!

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Message 2 of 20
Established Contributor

Re: How do they verify income when you apply for a credit card?

They don't really know unless they ask you for proof of income like paystubs or tax returns.  Typically credit cards are "stated income" loans where they take what you give them at face value.  Big banks typically take their chances, credit unions typically ask for proof of income.

 

 Some like Nordstroms don't even ask for income, maybe because they figure so many people lie anyway. LOL.  They just go by credit report.  They can see what others have given you and how you have managed your accounts. 

 

With some banks they give you a percent of income (like 10%) for your credit limit, so then it would matter whether you put down $200k vs $60k. 

 

So, in summary, they often don't know if you are telling the truth, and yeah, it can make a difference in the credit limit you receive.

 

  

 

Message 3 of 20
Valued Member

Re: How do they verify income when you apply for a credit card?

my best guess is that they don't check incomes.

Message 4 of 20
Regular Contributor

Re: How do they verify income when you apply for a credit card?

There are a few that ask where you work and for work phone numbers, I have had at least one call my work and verify my income. I don't remember which card it was that did that, but my boss did let me know he had verified my income with them.
Message 5 of 20
Established Contributor

Re: How do they verify income when you apply for a credit card?


Cyrion wrote:
There are a few that ask where you work and for work phone numbers, I have had at least one call my work and verify my income. I don't remember which card it was that did that, but my boss did let me know he had verified my income with them.


I thought that the most that an employer can give out is that you work there but that an employer is not allowed to give out any other information such as income information
Message 6 of 20
Regular Contributor

Re: How do they verify income when you apply for a credit card?


MojaveMoon wrote:

Cyrion wrote:
There are a few that ask where you work and for work phone numbers, I have had at least one call my work and verify my income. I don't remember which card it was that did that, but my boss did let me know he had verified my income with them.


I thought that the most that an employer can give out is that you work there but that an employer is not allowed to give out any other information such as income information

"I think the way it works is, If someone asks "How much does whoever make?" they won't give it out, but when they already know the wages you are supposed to be making they can ask your employer a yes or no question, such as "I am verifying income on a credit app, does this person make this amount?"

Message 7 of 20
Established Contributor

Re: How do they verify income when you apply for a credit card?

Thank you Smiley Happy
Message 8 of 20
Valued Contributor

Re: How do they verify income when you apply for a credit card?


Cyrion wrote:

MojaveMoon wrote:

Cyrion wrote:
There are a few that ask where you work and for work phone numbers, I have had at least one call my work and verify my income. I don't remember which card it was that did that, but my boss did let me know he had verified my income with them.


I thought that the most that an employer can give out is that you work there but that an employer is not allowed to give out any other information such as income information

"I think the way it works is, If someone asks "How much does whoever make?" they won't give it out, but when they already know the wages you are supposed to be making they can ask your employer a yes or no question, such as "I am verifying income on a credit app, does this person make this amount?"


Actually, i can only speak for New York and not the country, however a manager can only verify proof of employment. We can not under any circumstance ever speak about salary. It is up to the individual to provide paystubs not the company. 

 

 

Message 9 of 20
Regular Contributor

Re: How do they verify income when you apply for a credit card?


oracles wrote:

Cyrion wrote:

MojaveMoon wrote:

Cyrion wrote:
There are a few that ask where you work and for work phone numbers, I have had at least one call my work and verify my income. I don't remember which card it was that did that, but my boss did let me know he had verified my income with them.


I thought that the most that an employer can give out is that you work there but that an employer is not allowed to give out any other information such as income information

"I think the way it works is, If someone asks "How much does whoever make?" they won't give it out, but when they already know the wages you are supposed to be making they can ask your employer a yes or no question, such as "I am verifying income on a credit app, does this person make this amount?"


Actually, i can only speak for New York and not the country, however a manager can only verify proof of employment. We can not under any circumstance ever speak about salary. It is up to the individual to provide paystubs not the company. 

 

 


I may be mistaken, now that you mention it, it was quite awhile ago and it may have just been an employment verification.

Message 10 of 20