topic LL Bean Mastercard Net Income Request in Credit Cards

LL Bean Mastercard Net Income Request

bergrides — Thu, 12 Sep 2019 01:43:46 GMT

Got an email from LL Bean Mastercard (Citi) asking to update information, including net income after taxes:

*Total Annual Net Income is your yearly income after taxes. If you are 21 or older, you may include income from others that you can reasonably access to pay your bills. You do not have to include alimony, child support, or separate maintenance income if you do not want it considered as a basis for repaying this debt.

This is different. Amex, and even other Citi cards, just say Annual Income. I called and they said you could add a tax refund if you got one.

Anyone seen this on other cards?

Thanks

Re: LL Bean Mastercard Net Income Request

Anonymous — Thu, 12 Sep 2019 01:47:39 GMT

Synchrony always wants net income.

Re: LL Bean Mastercard Net Income Request

RSX — Thu, 12 Sep 2019 01:47:57 GMT

Yes. Don’t remember offhand, which card does this, but I have seen it

Re: LL Bean Mastercard Net Income Request

bergrides — Thu, 12 Sep 2019 02:02:04 GMT

Interesting. Hopefully I can take gross minus taxes not gross minus 401K minus health insurance cost minus taxes

Re: LL Bean Mastercard Net Income Request

RSX — Thu, 12 Sep 2019 02:04:18 GMT

I have always updated it with what hits my bank Acct. But only because I never considered those 2 other items

i think for sure you can add back the cost of 401k and health benefit costs. Since they are technically voluntary

Re: LL Bean Mastercard Net Income Request

Anonymous — Thu, 12 Sep 2019 02:10:59 GMT

@bergrides wrote:
Interesting. Hopefully I can take gross minus taxes not gross minus 401K minus health insurance cost minus taxes

Net is just minus taxes AFAIA.

Re: LL Bean Mastercard Net Income Request

coldfusion — Thu, 12 Sep 2019 16:22:10 GMT

@Anonymous wrote:
@bergrides wrote:
Interesting. Hopefully I can take gross minus taxes not gross minus 401K minus health insurance cost minus taxes
Net is just minus taxes AFAIA.

From an accounting perspective, net pay does factor in deductions like 401K, health/dental/term life insurance, union dues, taxes, and so on. It's not just taxes.

A simple definition is that net pay is based upon what the payroll check actually deposits into your bank account.

Re: LL Bean Mastercard Net Income Request

bergrides — Thu, 12 Sep 2019 16:27:37 GMT

I just talked to their Customer Service and they said they are only looking at Gross minus taxes. To me it would be what goes in the bank, but I will probably go with Gross - Taxes based on the call with CS.

Re: LL Bean Mastercard Net Income Request

coldfusion — Thu, 12 Sep 2019 16:29:51 GMT

@bergrides wrote:
I just talked to their Customer Service and they said they are only looking at Gross minus taxes. To me it would be what goes in the bank, but I will probably go with Gross - Taxes based on the call with CS.

Give them what they ask for.

Re: LL Bean Mastercard Net Income Request

Anonymous — Thu, 12 Sep 2019 16:35:43 GMT

Or simply ignore it as it's not required to keep the account.

The CARD act requires lenders to periodically ask and lenders do but, mostly they want to see if they can make you more profitable by extending more credit to you and hoping you'll pay interest if you charge too much to PIF.

Re: LL Bean Mastercard Net Income Request

Anonymous — Thu, 12 Sep 2019 16:37:55 GMT

@coldfusion wrote:
@Anonymous wrote:
@bergrides wrote:
Interesting. Hopefully I can take gross minus taxes not gross minus 401K minus health insurance cost minus taxes
Net is just minus taxes AFAIA.
From an accounting perspective, net pay does factor in deductions like 401K, health/dental/term life insurance, union dues, taxes, and so on. It's not just taxes.

A simple definition is that net pay is based upon what the payroll check actually deposits into your bank account.

Yeah I know what the definition is but Sync’s definition has always been post-tax from what I heard is what I meant.

However it looks like that is actually incorrect. They want to see what you actually have available to spend based on this excerpt from one of their applications.

This doesn’t affect any of my applications since my gross and net are the same number (my SSDI isn’t taxable and I don’t pay Medicare either) but it’s good for others to be aware of in case they ever do another round of blue letters.