What's stopping people from lying about your income?

[merlinflex]

I under state my income by $100k....wonder if that is fraud? 

[Anonymous]

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@Anonymous wrote:

What does AA mean?

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It means Adverse Action. 

[Thomas_Thumb]

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@merlinflex wrote:

I under state my income by $100k....wonder if that is fraud? 

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You're going down. You don't qualify for food stamps.

[Anonymous]

Good to know that people ain't abusing it. But I'm pretty sure they can find out if they want. Don't even need to ask you.

[longtimelurker]

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@creditguy wrote:

What keeps a person from lying? Their conscious!! Either you have morals or you don't. If you have morals you don't lie, plain and simple. Have people fudged a bit? I'm sure. A person who fudges may round off $39,975 to $40k, no big deal, but still technically a lie, probably not going to cause any AA or scrutiny, now a person who adds thousands well that's a different matter. You may not see a jail cell for lying about income, but your definitely going to lose a card if caught and probably find yourself on a blacklist, in some cases depending on the card, jail would be the less harsh punishment than blacklisting. Why take a chance? 

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OT, but "plain and simple" usually is an over-simplification.   A great example, from a Kaplan SAT prep class I saw:  "An person wielding a huge bloody ax bursts into your house.   Your younger sister manages to hide in a closet but you are too slow.   The person sees you, raises the ax and says "Where is your sister?" "   To avoid being immoral, do you point to the closet and say "In there"?  Probably not.

As I said, OT!

[Open123]

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@FinStar wrote:

Now, let's say you're flying high and had perpetuaded such fraud (since it is fraud) and fell on hard times, again just an example (I can almost guarantee it happens), well if an individual decides to file BK or is sued by a lender and the income piece comes into light?  what do you thing the justice system will do?

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+1

Right, it's best not to lie.  Things happen in life and BK laws are there to protect us when they do.  However, if it's shown that a person has been willfully untruthful, it becomes fraud. 

[Anonymous]

well on my cc's applications/ when i request increases, they always have a little notifiaction saying if you're over 21 you can include income that you can have access to, so i always include my parents' and my boyfriend's income.

[Anonymous]

This is a ponderous subject. They don't check unless they pull FR on you, then you know. In my entire credit history, the only times I've been required to "prove it", has been when I've opened a new credit line, and even then, it's been rare. I'm not telling anyone not to tell the truth, but if you haven't and you get called on it, you also have the option to decline and close the account.Be aware that fraudulent activity can become criminal activity, if you file for bankruptcy.

[masscredit]

I'm going to guess apps are approved/denied by a computer that reviews the info provided along with credit reports. Amazing all of that can be done in seconds.  (Mod Cut)

[Anonymous]

If you claim to be a millionaire, then make a $25 payment, your creditors are probably going to have a WFT moment.