Interesting income / credit card question ..

[Anonymous]

So, when you apply for a credit card, the income question has always bemused me... most of us when we app put our income AT THAT MOMENT -- we dont use last year's (as AMEX wants for FR apparently -- never had one, but seen many posts!), we dont use future income and we dont use income far in the past.  So, lets say that I go back to school this fall, and suddenly my incomes declines 60% as I'm a FT student... What does this mean?  If FR'd by any comapany or audited per se, would it not make sense to show the income we used WHEN WE APPLIED ?  or, at that current moment ?

Reason I aslk is simple... Im going back to pursue my higher nursing license in Sept, and my high income will go down considerably as I devote to studies.  My partner will still work FT so our combined income will still be over $75k, but nowhere near where it is now.  And to be truthful I will be relying heavily on my credit cards due to lost income -- smart?  No.  But it is what it is.  Upon graduation in late 2017, the payoff will be MASSIVE.  50% increase in pay, at least -- and nursing is one of those professions that basically guarantee job placement (already been offered within my agency).  So, I have a plan indeed -- but for 18 months, my cards may be UTIL at or well above 50% each (books, tuition, living expenses, computer etc)...of course I will keep making payments, 2x minimum at least.

But I have always pondered this income ever chnaging question... Only semi concerned about AA, because to be honest, whatever I lose I will gain back in 2018 when my new job starts (and likely thensome, once payoffs occur and UTIL drops) .... so, Any takers?  

[noobody]

You always update you income online or give them a call.

[Kostya1992]

AMEX is the only one who ever somewhat cares about income. The question is literally irrelevnt 98% of the time. Unless you write that you're Donald Trump and make 1$ billion a year, nobody cares. The ideal for banks is to get you to max your card and pay minimum payments your entire life.

[Anonymous]

You are over thinking it.  If push comes to shove, you can report joint income. All the best with your studies.

[Kostya1992]

You are all hired for my company and your starting pay is $120,000 with benefits. I reserve the right to terminate this contract any time for any reason and you will recieve your 5000 page terms and conditions soon.

[core]

Right now my income is $0 because I'm sitting here reading a damn forum.

Last year it was $x.  This year I expect it to be $y.

Pick x, y, or 0.  None of them will be "accurate". Nodoby cares at app stage.  If you get FR'd, deal with it then.  Don't overthink things  And maybe your zero key got stuck.

[OmarGB9]

I suppose technically they go off of current income, not past or future income; but as others have pointed out, lenders don't usually care (with the exception of Amex, of course) 90% of the time as long as they're getting paid.

[Anonymous]

Just use your entire household income so long as that money is made available to you for paying the bill. :-)

[core]

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@OmarGB9 wrote:
I suppose technically they go off of current income.

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Yeah but how do you come up with a figure for "current income"?  That's the question.   Don't even start with "salary" or "hourly".  Some folks create jobs rather than taking them up.

[Anonymous]

If you are worried about it:

Use what you can explain / prove. If Amex requires a 4056T and you are concerned then use last years income. 

But take into consideration that some want last years TR along with last 2 pay stubs. If you applied in March and they ask in December it does not matter unless you stated income way over the last tax return. If you applied in Nov and they ask in december then it better match what you pay stubs say.

Bottom line, don't over think it, use what you can explain / prove. And if you don't the worst that could happen is they take your card away....