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-Nate-
Posts: 3
Registered: ‎06-24-2013
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"Annual Salary and Wages" on CC application?

I'm planning on applying for a CC soon and I'm unsure of what I should put in the "Annual Salary and Wages" field since I'm a student and self-employed.

 

Is it asking for my income last year, my estimated income for this calendar year, or my estimated income for the next 12 months?

Valued Contributor
Luscher
Posts: 1,258
Registered: ‎03-24-2013
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Re: "Annual Salary and Wages" on CC application?

Income last year. Basically because if they have any questions they will request your taxes from last year. Chances are as a student they won't ask for any tax forms because they know you are in school and do not make a lot.
CHASE FREEDOM | CHASE RITZ | AMEX BCE | | BOFA REWARDS | CITI TYP | DISCOVER IT | CHASE CSP
--------$32,000-------------$25,000---------$22,700-----------$18,000------------$11,000--------$8,750----------$5,000----

FICO - TU: 780 EX: 785 EQ: 760
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john398
Posts: 3,526
Registered: ‎01-19-2009
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Re: "Annual Salary and Wages" on CC application?

I usually put down my estimated income for the current year but I am not self employed or a student

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09Lexie
Posts: 26,659
Registered: ‎09-13-2012
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Re: "Annual Salary and Wages" on CC application?

My DD is a grad student and also works as an intern -Cap 1 required her tax returns to prove her income.
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Revelate
Posts: 9,764
Registered: ‎12-30-2011
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Re: "Annual Salary and Wages" on CC application?

If W2: whatever your last two paystubs say you make, or tax return reported income.

 

Anything else: go by tax returns generally as that's what they'll ask for if you ever have to verify.

 

If you are making more than you did last year, can't justify it via paystubs, and can make a credible argument that you will continue to receive that amount, I'd probably put it down and if they called me on it, produce a lot more documentation though it'd admittedly be awkward.

 

Don't make it more complicated than it is: whatever you feel comfortable stating to a judge that you make, that's reasonable to put down; if you don't feel comfortable doing that (perjury or otherwise) don't put that value down.

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unc0mm0n1
Posts: 435
Registered: ‎03-05-2013
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Re: "Annual Salary and Wages" on CC application?


john398 wrote:

I usually put down my estimated income for the current year but I am not self employed or a student


I'm a law student and I've put my expected income on all of my applications, most were approved without requesting evidence. Citi was the only one that asked for proof.  I sent in my post-grad job offer and was approved. Although the limit was a lot less than I expected. I assume that if I actually had payslips my limit would have been higher. 

Last App December 7, 2013. Gardening until May 20, 2014
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xerostatus
Posts: 208
Registered: ‎05-09-2013
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Re: "Annual Salary and Wages" on CC application?

On a similarly related but slightly different note:

 

Gross or net?

 

The logical/obvious answer would be net, because who cares what you make gross, it is what you take home that shows your ability to pay debt(s).

 

However, obviously unless otherwise specifically stated ("state your NET income") or something, is it immoral to leave it open to interpretation and give your gross?

Just to play devil's advocate here, I'd say the logic would be: ill give you my gross pay, because what i pay in taxes is none of your business. (or something?)

 

I think most companies do ask for net specifically, for obvious reasons, but I have certainly come across apps where this was not clear.

What i did find kind of interesting was that NFCU specifically asked for my gross pay, so i was happy to give em my "inflated" number =).

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Revelate
Posts: 9,764
Registered: ‎12-30-2011
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Re: "Annual Salary and Wages" on CC application?

[ Edited ]

xerostatus wrote:

On a similarly related but slightly different note:

 

Gross or net?

 

The logical/obvious answer would be net, because who cares what you make gross, it is what you take home that shows your ability to pay debt(s).

 

However, obviously unless otherwise specifically stated ("state your NET income") or something, is it immoral to leave it open to interpretation and give your gross?

Just to play devil's advocate here, I'd say the logic would be: ill give you my gross pay, because what i pay in taxes is none of your business. (or something?)

 

I think most companies do ask for net specifically, for obvious reasons, but I have certainly come across apps where this was not clear.

What i did find kind of interesting was that NFCU specifically asked for my gross pay, so i was happy to give em my "inflated" number =).


Consumer / personal cards it's all gross income.  Always to my knowledge.  Federal / state taxes aren't that complicated for the majority of people for a lender to napkin math it.

 

Also remember both EX and EQ report payments too, so a lender can get a very easy back of the hand assessment of your spend and ability to repay.  These days most things for CC users go through their credit cards other than rent or mortgage and a few other things; it's just not a long walk.

 

Actually I'd suggest even on business applications it's gross income as well; business expenses are effectively deductions on taxes anyway.

 

In any event where have you seen net income asked for?  AFAIK it never has been, ever, when it comes to any product: credit card, auto, or mortgage loan.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
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Regular Contributor
xerostatus
Posts: 208
Registered: ‎05-09-2013
0

Re: "Annual Salary and Wages" on CC application?

hmmm.. i do recall once I recon'd an app, and when they asked for income i replied, "before or after taxes?" so i can clarify. The rep said, after.

Maybe thats where i'm remembering this from.

 

Well, if gross is the defacto standard, that makes me feel better.


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