Moderator
Revelate
Posts: 9,155
Registered: ‎12-30-2011
Re: Do YOU exaggerate your income when applying?

Tommy5746 wrote:

OwNt wrote:

I doubt that strategy is on the up and up.

 

If it was, I could easily gather up all my savings, checkings, 401(k), IRA, MMA, etc.. accounts and inflate my annual income by at least 50k. Imagine you do this and then at some point declare bankruptcy. The judge might see this as fraud and then you just shot yourself in the foot.

 

Most application forms specifcally ask for monthy or yearly income anyway, not total assets.


I looked into it more.. you CAN declare your savings as part of your income as long as you draw from your savings in a standard fashion.. SO, lets say you have 20k in your savings and you set up a monthly transfer of 500.00 into a transaction checking account.. thats 6k extra you can add to your income annually... Now, i do however wonder how they allow this seeing as eventually the savings will run out if you do this..


According to what source?

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New Contributor
OwNt
Posts: 62
Registered: ‎10-07-2007
Re: Do YOU exaggerate your income when applying?

All you're doing in this example is moving money around every month. If you had $500 deposited from somebody else's checking account on a consistent basis, then it would be a different story.

 

Can you provide a citation to back up your claims?

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Regular Contributor
mkm77
Posts: 147
Registered: ‎08-25-2010
Re: Do YOU exaggerate your income when applying?

I don't exaggerate my income anymore than the credit card companies exaggerate their great customer service, auto reviews for credit line increases, and reward programs.

Regular Contributor
Tommy5746
Posts: 440
Registered: ‎02-08-2012
Re: Do YOU exaggerate your income when applying?

OwNt wrote:

All you're doing in this example is moving money around every month. If you had $500 deposited from somebody else's checking account on a consistent basis, then it would be a different story.

 

Can you provide a citation to back up your claims?


 

I spoke with CITI customer service... I was recently approved for two of their cards and in the future I would like another so I figured I would ask them when I called customer service not long ago regarding a question I had with my cash back.. Anyway,... The gentlemen told me that when you apply you put down ALL sources of income... So, if you have a savings account and you grant yourself a sustained amount of money each month, then that is considered income... like is said before too... if you choose to do this just make sure you are actually doing it and not just saying it for app purposes.. Its the same with an IRA.. once you hit 59 1/2 you start receiving income from your IRA.. which is money you saved up... So, all sources of income are fine as long as you can prove it..

 

If you are applying for a mortgage... and you have 3 credit cards that lets just say your best friend pays off for you every month.. And your friend has been paying them for you for at least 6 months from his/her account.. then most banks will allow that to be factored in your favor by knocking those cards off of your DTI... They usually just ask for 6 months cancelled checks or bank statements proving the payments were made by them..  Its the same with a credit card app.. As long as you can PROVE you receive the income then all is fair....ALL income can be taken into account... doesn’t mean the income has to be w-2'd... doesn’t mean it has to be from your job... you just have you prove you receive it and that you have been receiving it..

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Established Contributor
linux007969
Posts: 604
Registered: ‎04-20-2012
Re: Do YOU exaggerate your income when applying?

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.


Whats wrong with 10k? I work for a nonprofit right now and make $6,500 as of the end of this year and i have 5 credit cards that u see in my sig. Oh and lieing on a credit application is a federal crime.

 

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Moderator
Revelate
Posts: 9,155
Registered: ‎12-30-2011
Re: Do YOU exaggerate your income when applying?

Tommy5746 wrote:

OwNt wrote:

All you're doing in this example is moving money around every month. If you had $500 deposited from somebody else's checking account on a consistent basis, then it would be a different story.

 

Can you provide a citation to back up your claims?


 

I spoke with CITI customer service... I was recently approved for two of their cards and in the future I would like another so I figured I would ask them when I called customer service not long ago regarding a question I had with my cash back.. Anyway,... The gentlemen told me that when you apply you put down ALL sources of income... So, if you have a savings account and you grant yourself a sustained amount of money each month, then that is considered income... like is said before too... if you choose to do this just make sure you are actually doing it and not just saying it for app purposes.. Its the same with an IRA.. once you hit 59 1/2 you start receiving income from your IRA.. which is money you saved up... So, all sources of income are fine as long as you can prove it..

 


I hate to be a debbie-downer, but the sad fact is CSR's are often wrong, misinformed, innacurate, etc ad naseum.

 

I would never, ever do something like claiminng spending my assets is income without consulting with a lawyer first.   I think there's some generalizations in this thread which may well be legally innacurate, and inadvisable regardless.

 

I'm not a lawyer, but other than the corner-case of retirees that you mentioned, I just don't see this as being legitimate.  Spending money out of your checking account is not income under any typical definition of the word.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Do YOU exaggerate your income when applying?
[ Edited ]

Thread is unlocked...

 

Kind remonder to keep it on-topic. Also, this thread has been generally good about the rules, but a reminder that posting about overtly lying or advocating or suggesting lying on an app is a no-no.

New Member
samanthathewitch
Posts: 5
Registered: ‎09-16-2012
Re: Do YOU exaggerate your income when applying?

linux007969 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.


Whats wrong with 10k? I work for a nonprofit right now and make $6,500 as of the end of this year and i have 5 credit cards that u see in my sig. Oh and lieing on a credit application is a federal crime.

 


Do you have a source/link to the applicable law please?

 

Established Contributor
linux007969
Posts: 604
Registered: ‎04-20-2012
Re: Do YOU exaggerate your income when applying?

samanthathewitch wrote:

linux007969 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.


Whats wrong with 10k? I work for a nonprofit right now and make $6,500 as of the end of this year and i have 5 credit cards that u see in my sig. Oh and lieing on a credit application is a federal crime.

 


Do you have a source/link to the applicable law please?

 


If you read the apps it basically says if you lie its a crime but here you go: http://www.creditcards.com/credit-card-news/legal-consequences-of-lying-on-credit-card-application-f...


samanthathewitch wrote:

linux007969 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.


Whats wrong with 10k? I work for a nonprofit right now and make $6,500 as of the end of this year and i have 5 credit cards that u see in my sig. Oh and lieing on a credit application is a federal crime.

 


Do you have a source/link to the applicable law please?

 


if you read the apps it basically says its a crime if you lie on any portion of the app but here you go: http://www.creditcards.com/credit-card-news/legal-consequences-of-lying-on-credit-card-application-f...

 

Discover IT TU Score: 739 as of 4/20/14 | TU Score as of 1/5/14 - 710 | EQ Score as of 1/5/14 - 748 | Ex Score as of 1/5/14 - 728
TU Score as of 1/5/14 - 705 | EQ Score as of 1/5/14 - 721 | Ex Score as of 1/5/14 -753 |

Capital One QuickSilver MC $4.5K | Amazon $1.8K (CLOSED) | Walmart $5K | Paypal SC w/Debit card $5K | BOA 123 Cash Rewards Sig $5K | BOA BBR $1K | Discover IT $8K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $5k | PNC Auto Loan $20,038.75 | AMEX SimplyCash Biz CC $3k | BOA Cash Rewards Biz CC $3.5K |
Regular Contributor
Tommy5746
Posts: 440
Registered: ‎02-08-2012
Re: Do YOU exaggerate your income when applying?

linux007969 wrote:

samanthathewitch wrote:

linux007969 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.


Whats wrong with 10k? I work for a nonprofit right now and make $6,500 as of the end of this year and i have 5 credit cards that u see in my sig. Oh and lieing on a credit application is a federal crime.

 


Do you have a source/link to the applicable law please?

 


If you read the apps it basically says if you lie its a crime but here you go: http://www.creditcards.com/credit-card-news/legal-consequences-of-lying-on-credit-card-application-f...


samanthathewitch wrote:

linux007969 wrote:

DaveSignal wrote:

I don't think lenders base credit limits off of your income anyway....  at least it is not a primary concern.  They just don't want to see something like 10k annually or some number that would make paying your bills and staying alive at the same time impossible.


Whats wrong with 10k? I work for a nonprofit right now and make $6,500 as of the end of this year and i have 5 credit cards that u see in my sig. Oh and lieing on a credit application is a federal crime.

 


Do you have a source/link to the applicable law please?

 


if you read the apps it basically says its a crime if you lie on any portion of the app but here you go: http://www.creditcards.com/credit-card-news/legal-consequences-of-lying-on-credit-card-application-f...

 


we ALL know you shouldnt lie on your app.. but, if somebody said they make 32k but they really make 30k... im going to bet the farm that the WORST thing that happens is the CCC closes the card.. and possibly even blacklists them... I dont see that as a top tier case for the feds lol... And i hiiighly doubt the CCC would even report it...

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