topic Re: How many of you have exaggerated income on an app? in Credit Card Applications

How many of you have exaggerated income on an app?

Anonymous — Tue, 21 Jul 2015 23:29:16 GMT

Not sure if anyone that has done this would say so but I'm just curious. Seems like it would be very easy since they don't ask for proof of income. And I'm sure people that have higher income get higher limits. I'm just wondering what would happen if someone that makes 30k/year stated income as 80k/yr on a credit card app. I've never done it and don't plan to, but the thought crossed my mind over the last few days while I was in my mini app spree.

Re: How many of you have exaggerated income on an app?

CreditCuriosity — Tue, 21 Jul 2015 23:42:39 GMT

Pretty sure quite a few have... Sometimes it comes backs and bytes them as well when asking for CLI's etc as can be seen in searching the forums as say, but they asked for paystubs or my w-2, etc.. Bank really should verify income prior to handing out credit via paystubs or something not to intrusive. If a bank such as Amex ever FR's you or another lender and you can't prove it (not saying you), that person is most likely going to have that account closed. Dosen't happen a ton, but does happen.

Re: How many of you have exaggerated income on an app?

Anonymous — Tue, 21 Jul 2015 23:44:00 GMT

I should clarify here. The thought of what would happen if someone did this, not the thought of me doing it.

Re: How many of you have exaggerated income on an app?

Anonymous — Tue, 21 Jul 2015 23:46:40 GMT

@Anonymous wrote:
Not sure if anyone that has done this would say so but I'm just curious. Seems like it would be very easy since they don't ask for proof of income. And I'm sure people that have higher income get higher limits. I'm just wondering what would happen if someone that makes 30k/year stated income as 80k/yr on a credit card app. I've never done it and don't plan to, but the thought crossed my mind over the last few days while I was in my mini app spree.

I make around 35k and that includes the student stipend I receive. I put exactly that and am so glad because Cap One slapped me w/ an income verification in order to receive a CLI. I was worried my student stipend wouldn't/shouldn't count (so there were times I believed my income was inflated b/c of the inclusion of stipend) but two different UW have said that the right thing is to include it. I wouldn't dare put anything more than the 35k I enter and my fear surrounding that was validated when I got income verif. from C1. I don't hear requests for income verif. really often so I can undertsand people feeling free to pad their income a bit, but I think it's absurd to put 80k if you make 30k. Just my humble opinion; I'm sure some have gotten away with that successfully for a long time.

***You posted again while I was writing and to your second point, it seems like the account might get closed or AA/CLD if a bank finds out you make 30k while claiming 80k. Again, I'm sure lots of folks sneak on by.

Re: How many of you have exaggerated income on an app?

Anonymous — Tue, 21 Jul 2015 23:54:39 GMT

I am a huge chicken when it comes to that stuff because I know that they could ask for proof of income and I wouldn't want to get caught in that lie, but you don't hear about it happening very often. When you buy a 25k $ car, you have to provide pay stubs but I hear lots of ppl getting a credit card with a 30k $ limit with no proof if income required.

Re: How many of you have exaggerated income on an app?

ojefferyo — Tue, 21 Jul 2015 23:57:24 GMT

I'm sure many have, as for myself I don't because you'll just end up in a bad spot when you charge out of control and have no way of paying back. PenFed already asked for POI when I app'd for their PLOC.

Re: How many of you have exaggerated income on an app?

CreditCuriosity — Wed, 22 Jul 2015 00:02:11 GMT

@Anonymous wrote:
I am a huge chicken when it comes to that stuff because I know that they could ask for proof of income and I wouldn't want to get caught in that lie, but you don't hear about it happening very often. When you buy a25k $ car, you have to provide pay stubs but I hear lots ofppl getting a credit card with a30k $ limit with no proof if income required.

Just leased a 60k car and didn't have to provide income, granted I have 20 years perfect auto payment history and they can see I can handle 1000ish payments from previous loans, thus partially no income verification.. Based on your previous track record.. I would have no problem with them asking to see it either though.

No one will admit to lieing to their income on applications, although people try to use household income, when in-fact they are including just roommates incomes and such or BF/GF incomes when not jointly filing which I think is wrong, but they justify it. this has been aruged many many times on this forum and gets no where each time.. People will do what people want to do and most likely they will be ok and get away with it. Until they get in over their head with debt if they ever do...Then the real fun begins.

Re: How many of you have exaggerated income on an app?

Anonymous — Tue, 21 Jul 2015 23:59:46 GMT

No! Never have! Never would! Too many scenarios in my head about things that could happen with that.

Re: How many of you have exaggerated income on an app?

CreditCuriosity — Wed, 22 Jul 2015 00:01:33 GMT

@ojefferyo wrote:
I'm sure many have, as for myself I don't because you'll just end up in a bad spot when you charge out of control and have no way of paying back. PenFed already asked for POI when I app'd for their PLOC.

This is one thing I like about Credit Unions, they actually usually enforce proof of income.. Kinda wonder why they have lower APR%'s then most banks, probably part of it right there?

Re: How many of you have exaggerated income on an app?

Anonymous — Wed, 22 Jul 2015 00:04:05 GMT

Since I now work part time, I make less than I used to earn. However, my children receive survivor's benefits from SSA, which I include because it is monthly income used to pay the household bills.

Re: How many of you have exaggerated income on an app?

CreditCuriosity — Wed, 22 Jul 2015 00:16:31 GMT

@Anonymous wrote:
Since I now work part time, I make less than I used to earn. However, my children receive survivor's benefits from SSA, which I include because it is monthly income used to pay the household bills.

That is perfectly legit income .

Re: How many of you have exaggerated income on an app?

EW800 — Wed, 22 Jul 2015 00:24:14 GMT

I've always been straight up about my income, other than maybe rounding up to the next hundred or so, such as $80,925 being reported as $81,000 or similar.

Re: How many of you have exaggerated income on an app?

Anonymous — Wed, 22 Jul 2015 00:29:37 GMT

I agree with using the SSA income. I use my child support because it's money used to pay bills with.

Re: How many of you have exaggerated income on an app?

Callandra — Wed, 22 Jul 2015 00:32:14 GMT

@EW800 wrote:
I've always been straight up about my income, other than maybe rounding up to the next hundred or so, such as $80,925 being reported as $81,000 or similar.

Well, rounding up $75 is one thing...adding another $50k to your income is another!

And I got my car loan with my Dad and neither of us had to prove income (of course my Dad has 40 years of perfect credit and has had a Honda loan before). Heck, they let us leave the dealership with the car without even giving them any money! (We mailed them a check for the down payment later)

Re: How many of you have exaggerated income on an app?

OmarGB9 — Wed, 22 Jul 2015 00:49:47 GMT

I inflate mine a little bit because I include financial aid in my income, which in all reality I do use for my living expenses, so if verification was needed, I can provide proof without issue.

Re: How many of you have exaggerated income on an app?

Anonymous — Wed, 22 Jul 2015 00:59:23 GMT

Haha, I just realized I've been under reporting my income by 1000$/yr. Oh well. Lol

Re: How many of you have exaggerated income on an app?

jzamarripa3220 — Wed, 22 Jul 2015 01:19:02 GMT

I've exaggerated my income by 3-5k on every app so far, compared to what's on my w2( which shows I make 15-16k a year). I'm a server, a lazy one at best, and I just don't keep track of how much I make in cash tips very well. I estimate my income is over 21k, but I really have no way of proving that. I just try not to poke/wake any sleeping bears when I do exaggerate my income.

Re: How many of you have exaggerated income on an app?

Anonymous — Wed, 22 Jul 2015 01:34:30 GMT

LOL! That ^^^ made me laugh out loud!!

Re: How many of you have exaggerated income on an app?

Anonymous — Wed, 22 Jul 2015 02:07:42 GMT

I report my correct annual income. I do not include DW, but the unfair part is when they ask for the mortgage payment, which is over $1,100 per month, it is split between DW and I. So, I just put $550 for mortgage payment because that is half and that is what I contribute towards it. Actually, that's what a rep at Discover told me to do when I was requesting a CLI back in April while on the phone. Made sense to me. However, one thing I haven't been including is my 401(K) (not sure that counts) and checking/savings accounts. I guess that should be part of it too.

Re: How many of you have exaggerated income on an app?

mikelo22 — Wed, 22 Jul 2015 02:21:18 GMT

I did back when I was in college. If you do it, don't be ridiculous and put some amount that is not reasonable. And don't do it just to get a higher limit (which you have no business getting with a lower income anyway).

That said, my amounts were always causally and rationally related. I took into account financial aid loans (which I used to pay my bills), scholarships, job, stocks/CD's, and, of course, money from my parents.

I did it so that I coud get my foot in the door and get accepted. I knew my limits though and didn't charge more than I knew I could PIF right away. No harm no foul, IMO.

That said, with some CCC's like Discover, you'd be surprised what they will allow you to include as income. For instance, they will allow me to include my full-tuition scholarship at law school as part of my "income." Makes no sense to me since I don't "see" that money, but I've asked two CSR's about this before and both have confirmed. Even with that knowlege, I still didn't include it because then my income would have been something ridiculous, close to six figures with my actual income that I make now.

On second thought, perhaps I should if I want that dang Discover CLI, LOL.