@Creditaddict wrote:
@Cdnewmanpac wrote:
Because of the Card act, you can no longer use a spouse's income when applying for credit. You should be able to use your grants, but you may want to include an explanation about the difference between what you listed on the application and what you can verify. Otherwise, it looks fraudulent.I didn't think that was true because it was discriminating stay at home parents and such.
I can't think of it right now but I recently applied for something and it told me to use "ALL SOURCES" when stating my income in the house.
I think the income thing is stupid... What I made today might not be what I make tomorrow... now I understand a little bit then when it came to realestate and cars many years ago they would inflate your income into hundreds of thousands a month if they had to make the DTI come out.... but I don't think "Fudging" the income numbers really did that much to credit cards, credit lines, and defaults.... I mean how long has it been now that a 80 yo told Citi ON the application that he made $4k a year I believe it was and they gave him a $18k credit line or something.... I forget who sued who but I don't think Citi came out of it rosie. I mean once you pass that area where some companies computers kick it out (I have seen $12k/year) I really dont' think it weighs to much on the income from that point... you have an 800 score Im not betting if you have other credit that you are not going to get more!
Dunno senor. When I make 130k or more per year, I'm more likely to be able to repay a maxxed out credit limit of call it 25K than if I make the 50K I'm willing accept now to make rent over the next few months as a short-term solution.
Also all lenders make some fee off the transaction (part goes to Visa / MC / Amex, only exception being Discover and Amex-issued cards where Disc/Amex make both sides of the transaction fee) and as a general rule higher incomes spend more and have more transactions as a whole. Consumer profitiability is definitely a factor in CL issuance.
You figure there's got to be some other details too, like people making over 80K, single, and under 40 are more likely to let a CC balance float past the grace period, thereby earning interest charges, and this number is probably even higher for people making over 120K and under 30. It's not exactly discrimination per se, but it's all things they calculate in their risk / profitability determination which definitely factors into what credit limits are offered. Also assets and life expectancy come into play too: if that 80 year old owns a 500K property free and clear, even if he defaults so what? Even including penalties, when it comes to the estate transfer for inheritance, the lender will just be there waving a judgement around and get paid.
Ideally a CL is issued such that it can be maxxed out and still repaid without defaulting. This of course changes with the aggregate economy, and a lender's total exposure vs. their reserves. CL's as a result appear to be determined by a Oujia board sometimes, but there's always some rationale by the lender on it.
Not for nothing, but that story reads like lip service. 
Things like this are too well planned for unintended consequences, LOL!
On some level, we all know they wanted to reduce the risk for banks, and other lenders, in non-community property states.
Starting Score: 675