topic Re: What qualifies as income on an application? in Credit Card Approvals

What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 03:28:12 GMT

I'm currently 18 years old and a freshman in college. The card I'd like to get is the Gold Delta Skymiles American Express. I don't currently have a job, and was wondering if I can put financial aid and money received from parents for tuition as income on an application, I had seen a post on another forum stating that you can do this. How important of a factor is income in an application? I got my first card in September of last year from Wells Fargo because they are my main bank. I don't know what my credit scores are, but my utilization is about 15% on the Wells Fargo card and I'm an authorized user on one of my parents American Express cards who has a credit score over 800.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 03:53:04 GMT

Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 04:12:39 GMT

Good to know I can use my financial aid as income, is it common for a card issuer to ask for verification?

Also, what's the best way for me to check my scores? I'd like to check before applying so I can get a general idea if its a hopeless attempt as I'd rather not waste an inquiry.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 04:32:37 GMT

@Anonymous wrote:
Good to know I can use my financial aid as income, is it common for a card issuer to ask for verification?

Also, what's the best way for me to check my scores? I'd like to check before applying so I can get a general idea if its a hopeless attempt as I'd rather not waste an inquiry.

They don't always ask for verification but they can ask if they are not satified with a credit profile. Also, you can get your real FICO scores here on this site... See what your scres are and then plan a strategy t oapply for the card you really want.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 04:36:37 GMT

@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...

You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 05:02:23 GMT

@Anonymous wrote:
@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...
You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.

I am not encouraging anything. We can disagree all day but it counted as income... Also, the Financial Aid refund can count as such..

http://ficoforums.myfico.com/t5/Credit-Cards/can-scholarships-count-as-income/td-p/2167027

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 04:57:39 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...
You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.
I am not encouraging anything. We can disagree all day but it counted as income...

http://ficoforums.myfico.com/t5/Credit-Cards/can-scholarships-count-as-income/td-p/2167027

Sorry if I came off as argumentative. Wasn't my intention. Just don't want to steer OP in the wrong direction.

In regards to the link, scholarships are different from financial aid. Scholarships you don't have to pay back. Financial aid is debt that you do.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 05:00:57 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...
You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.
I am not encouraging anything. We can disagree all day but it counted as income...

http://ficoforums.myfico.com/t5/Credit-Cards/can-scholarships-count-as-income/td-p/2167027
Sorry if I came off as argumentative. Wasn't my intention. Just don't want to steer OP in the wrong direction.

In regards to the link, scholarships are different from financial aid. Scholarships you don't have to pay back. Financial aid is debt that you do.

@Anonymous,

No worries.. I am good and I am also sorry if i sort of accuse you know.. But I see what you are saying.. The logical thing to do is to count it as debt but most CC companies don't see it as such.. That is why you see alot of college kids get into credit trouble right of the bat.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 05:06:06 GMT

@Anonymous wrote:
@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...
You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.

I should have clarified what I meant as financial aid. I have a grant from the federal government as well as a grant from the school and a small miscellaneous scholarship. None of these need to be paid back, I have not taken any student loans and thankfully do not anticipate having to in the future.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 06:25:55 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...
You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.
I am not encouraging anything. We can disagree all day but it counted as income...

http://ficoforums.myfico.com/t5/Credit-Cards/can-scholarships-count-as-income/td-p/2167027
Sorry if I came off as argumentative. Wasn't my intention. Just don't want to steer OP in the wrong direction.

In regards to the link, scholarships are different from financial aid. Scholarships you don't have to pay back. Financial aid is debt that you do.

Not all financial aid is debt, which OP cleared up above. Yes, there are scholarships but school-based and federal grants are forms of financial aid too. I'm currently a college student and I have to say that this is actually a really ignorant and harmful misconception that a lot of people have. It's unfortunate because the automatic assumption that ALL financial aid is made up of debt/loans deterred a lot of my friends from even applying for financial aid, which could have potentially saved them a bunch of money.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 06:16:02 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...
You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.
I should have clarified what I meant as financial aid. I have a grant from the federal government as well as a grant from the school and a small miscellaneous scholarship. None of these need to be paid back, I have not taken any student loans and thankfully do not anticipate having to in the future.

No, you're fine. It was implied that your financial aid included grants since you grouped it with money received from your parents. You should be good citing your award package as income. Just maintain whatever paperwork and documents you have for the future dude.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 13:06:10 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Welcome to the forum.. Income is very very important when applying for credit as the company wants to know exactly how you intend to pay them when you use the card. I'd use the money from financial aid + money given to you by your parents as income.

Lastly, you need to see what your scores are as it is nice your parents have a score over 800, but that does not play a role in your application. When you it comes to you applying you are on your on.

EDIT: You can also have your parents add you to more of their credit cards to help you build credit...
You're encouraging financial aid as income? Financial aid is debt. That is like counting a PLOC or CC as income. I disagree 100%.
I should have clarified what I meant as financial aid. I have a grant from the federal government as well as a grant from the school and a small miscellaneous scholarship. None of these need to be paid back, I have not taken any student loans and thankfully do not anticipate having to in the future.
No, you're fine. It was implied that your financial aid included grants since you grouped it with money received from your parents. You should be good citing your award package as income. Just maintain whatever paperwork and documents you have for the future dude.

+1...

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 18:38:34 GMT

How accurate are credit score estimators? I did the one on myfico and it estimated my score to be 685-720. I find that hard to believe because my only card is about 7 months old.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 18:48:31 GMT

@Anonymous wrote:
How accurate are credit score estimators? I did the one on myfico and it estimated my score to be 685-720. I find that hard to believe because my only card is about 7 months old.

It's possible that your score is in that range but the only way to tell is by getting an actual score.

Re: What qualifies as income on an application?

Anonymous — Sat, 11 Apr 2015 18:50:49 GMT

Income is money you receive as compensation for a good or service you provide or facilitate in doing so.

Re: What qualifies as income on an application?

Anonymous — Sun, 19 Apr 2015 00:45:32 GMT

Well I applied for the card today and was approved for $2000. Was really happy about it cause I didn't think I had a very good chance getting it with only 7 months of history on my Wells Fargo student card and 2 months of being an authorized user on my mom's Amex. Was thinking that if I even got approved it would be with a $1000 limit. Hopefully I'll be able to get it up to $6000 in two months with a 3X CLI.

Never ended up checking my credit score because I didn't want to pay, but the estimator said 690-740 (I highly doubt its that high in the 700s though with the amount of history I have however). Checked my Experian report from the annual credit report website and nothing bad showed up, which I expected.

Re: What qualifies as income on an application?

gdale6 — Sun, 19 Apr 2015 00:57:55 GMT

@Anonymous wrote:
Well I applied for the card today and was approved for $2000. Was really happy about it cause I didn't think I had a very good chance getting it with only 7 months of history on my Wells Fargo student card and 2 months of being an authorized user on my mom's Amex. Was thinking that if I even got approved it would be with a $1000 limit. Hopefully I'll be able to get it up to $6000 in two months with a 3X CLI.

Never ended up checking my credit score because I didn't want to pay, but the estimator said 690-740 (I highly doubt its that high in the 700s though with the amount of history I have however). Checked my Experian report from the annual credit report website and nothing bad showed up, which I expected.

Grats on your approval