topic Re: Conditional Approval (Tax Returns) in Credit Card Approvals

Conditional Approval (Tax Returns)

SSR — Tue, 25 Jul 2023 02:00:29 GMT

So I applied for Penfed card and got a conditional approval with providing 2 years of tax return. I'm in Real Estate and get a 1099 at end of year. Of course just as any good accountant, mine gets me a lot of write offs so my Schedule C doesn't show me making that much. Should I just send in my 1099 and explain?

Re: Conditional Approval (Tax Returns)

CreditCuriosity — Tue, 25 Jul 2023 02:09:56 GMT

Two choices either submit and hope for an approval or don't submit and guaranteed no approval. No explaining really to do they can read tax transcripts and make their judgement call as you will not be able to talk to an UW. Best of luck and let us know how it turns out. I speculate they will go off your AGI(adjusted gross income) from tax transcripts

Re: Conditional Approval (Tax Returns)

ocheosa — Tue, 25 Jul 2023 08:55:01 GMT

@SSR wrote:
So I applied for Penfed card and got a conditional approval with providing 2 years of tax return. I'm in Real Estate and get a 1099 at end of year. Of course just as any good accountant, mine gets me a lot of write offs so my Schedule C doesn't show me making that much. Should I just send in my 1099 and explain?

@SSR , This is one of the reasons I don't send tax returns for credit cards. Mortgage, Fed/State Business & Loans/Grants no problem. I've had no issue with sending 1099s and bank statements (business and personal) as proof of income and assets.

If you want the credit card, I would send both the 1099 and Schedule C. In my experience, depending on lender, they've used line 1 or line 7 from Schedule C. Line 1 captures all income (incl 1099s) so you should be all good. I can't imagine in RE you have returns/refunds or COGS? If that's not good enough for them, you can then decide if you want to send the full return or go elsewhere.

Good luck, hope it works out for you!.

Re: Conditional Approval (Tax Returns)

SSR — Tue, 25 Jul 2023 13:16:32 GMT

Thank you. All I sent was my 1099's and a commission statement of my earnings so far this year so if that's not good enough then I just won't get the card. It's funny because they approved wife with no issues and she is Real Estate as well. I'll keep you all posted on what happens.

Re: Conditional Approval (Tax Returns)

cashorcharge — Tue, 01 Aug 2023 19:50:43 GMT

WooHoo!! Congratulations on your Approval!!👏🏼🍾🥂