topic Re: Should I update my annual income? in Credit Cards

Should I update my annual income?

Jojo567 — Sun, 22 Aug 2021 15:26:39 GMT

I currently make about $35000 a year but, I will be cutting my work hours for school to where I will make about $7000 a year before taxes. Should I update my income with my credit cards at the end of the year to whatever my tax returns show? My income will be low for the next 2-3 years. My current lenders and limits are:

Amex: $10100 & charge card( annual fee will still be covered)

PPMC: $10000

Discover: $6250

Amazon store card: $5000

US Bank: $4500

Capitol One: $3800 & $600

Citi: $3200 & $2900

Petal : $700

My spending will decrease significantly on all of these cards, what is the chances of a financial review? The last I would want is for any of this cards to close. I would much rather take CLD.

Re: Should I update my annual income?

Anonymous — Sun, 22 Aug 2021 15:45:07 GMT

You're not obligated to update income. Chase asks me once in a while and I just ignore it. Low usage is better than no usage.

Re: Should I update my annual income?

Gunnerboy — Sun, 22 Aug 2021 17:16:42 GMT

You don't need to update income, unless you're requesting credit. Likely, nothing will happen to your limits, providing your utilization is low and you always pay on time.

Years ago, I had a stretch where my income dropped significantly and I didn't update income. My credit usage was almost inactive during that time, and since I was still making timely payments towards one card balance, nothing happened to any of my accounts.

Re: Should I update my annual income?

Anonymous — Sun, 22 Aug 2021 17:58:41 GMT

@Jojo567 wrote:
... Should I update my income ...

No.

To echo others: Let the sleeping dog sleep.

Re: Should I update my annual income?

SUPERSQUID — Sun, 22 Aug 2021 20:11:33 GMT

Leave it be, just adjust your spending accordingly and pay on time.

Don't poke the bear.

Re: Should I update my annual income?

Horseshoez — Sun, 22 Aug 2021 18:46:25 GMT

@Jojo567, I agree with everyone else, don't bother. On the other hand, when you graduate and land a new gig paying $100,000 a year, definitely update your income.

Re: Should I update my annual income?

Remedios — Sun, 22 Aug 2021 18:52:46 GMT

@Jojo567 wrote:
I currently make about $35000 a year but, I will be cutting my work hours for school to where I will make about $7000 a year before taxes. Should I update my income with my credit cards at the end of the year to whatever my tax returns show? My income will be low for the next 2-3 years. My current lenders and limits are:
Amex: $10100 & charge card( annual fee will still be covered)
PPMC: $10000
Discover: $6250
Amazon store card: $5000
US Bank: $4500
Capitol One: $3800 & $600
Citi: $3200 & $2900
Petal : $700
My spending will decrease significantly on all of these cards, what is the chances of a financial review? The last I would want is for any of this cards to close. I would much rather take CLD.

You don't have to update income if you are not plannig on asking for increase on any of your cards.

If you do ask, you should answer truthfully.

With that said...

Multiple lenders use outside sources for income verification such as EX's Income Insight, no 4506-T required.

TU provides lenders with Income Vision, which also doesn't require 4506-T.

EQ has multiple products to estimate your income and also, they operate Work Number (no estimate, real numbers if employer reports)

So, they can check veracity of our statements whenever they feel like it.

So, it's really up to you which way you want to go, letting the dogs sleep while keeping in mind they can wake up whenever they want, or you can change it yourself.

Re: Should I update my annual income?

FalconSteve — Tue, 24 Aug 2021 01:11:56 GMT

I would not update it

Re: Should I update my annual income?

Guyatthebeach — Tue, 24 Aug 2021 02:14:34 GMT

Jojo567,

Like everyone else, don't update your annual income. There is no need to poke the bear!

Just be mindful of your expenses and budget. You will be fine!

Congratulations on continuing in school!

Guyatthebeach

Re: Should I update my annual income?

Gollum — Tue, 24 Aug 2021 22:11:17 GMT

I was wondering about updating my annual income (it has increased), specifically regarding my Simmons Bank credit card. I'd like to keep that card, and I was thinking an increase in income might make that more likely. After a phone call, for Simmons Bank, at least, apparently an increase in annual income doesn't make a difference unless requesting a credit limit increase.

American Express seems to be very curious about changes to my annual income even though I faithfully reported the change.

I think the importance of changes to your annual income vary, depending on your credit card issuer ~~(and probably your FICO score)~~.

The most important thing is to pay your bills on time, every time.

Re: Should I update my annual income?

spiritcraft1 — Tue, 24 Aug 2021 17:31:53 GMT

Do not do that!!!!!

Re: Should I update my annual income?

FalconSteve — Tue, 24 Aug 2021 23:24:06 GMT

It could result in adverse action

Re: Should I update my annual income?

FinStar — Tue, 24 Aug 2021 23:30:03 GMT

@Gollum wrote:
I was wondering about updating my annual income (it has increased), specifically regarding my Simmons Bank credit card. I'd like to keep that card, and I was thinking an increase in income might make that more likely. After a phone call, for Simmons Bank, at least, apparently an increase in annual income doesn't make a difference unless requesting a credit limit increase.

American Express seems to be very curious about changes to my annual income even though I faithfully reported the change.

I think the importance of changes to your annual income vary, depending on your credit card issuer ~~(and probably your FICO score)~~.

The most important thing is to pay your bills on time, every time.

@Gollum-

Curious, as in how? Can you elaborate?

As mentioned further upthread, most lenders have a way to check these things anyway.

Re: Should I update my annual income?

Anonymous — Tue, 24 Aug 2021 23:35:02 GMT

@Gollum wrote:
. After a phone call, for Simmons Bank, at least, apparently an increase in annual income doesn't make a difference unless requesting a credit limit increase.

I'm not sure what else you might expect? Or were you thinking that they might give an auto CLI once they know about higher income

Re: Should I update my annual income?

Gollum — Tue, 24 Aug 2021 23:50:56 GMT

@FinStar wrote:
@Gollum wrote:
I was wondering about updating my annual income (it has increased), specifically regarding my Simmons Bank credit card. I'd like to keep that card, and I was thinking an increase in income might make that more likely. After a phone call, for Simmons Bank, at least, apparently an increase in annual income doesn't make a difference unless requesting a credit limit increase.

American Express seems to be very curious about changes to my annual income even though I faithfully reported the change.

I think the importance of changes to your annual income vary, depending on your credit card issuer ~~(and probably your FICO score)~~.

The most important thing is to pay your bills on time, every time.
@Gollum-

Curious, as in how? Can you elaborate?

As mentioned further upthread, most lenders have a way to check these things anyway.

When I look at my account using the American Express website, I see popups asking me to update my annual income after I already did so (not the last two or three times I logged in, now that I think about it).

Re: Should I update my annual income?

Gollum — Tue, 24 Aug 2021 23:53:17 GMT

@Anonymous wrote:
@Gollum wrote:
. After a phone call, for Simmons Bank, at least, apparently an increase in annual income doesn't make a difference unless requesting a credit limit increase.

I'm not sure what else you might expect? Or were you thinking that they might give an auto CLI once they know about higher income

I think I already covered that in Message 10 in this thread.