topic Re: Income on Applications for Credit in Credit Cards

Income on Applications for Credit

bigman023 — Tue, 08 Jan 2013 18:25:45 GMT

Just wondering if there is a rhyme or reason on when it's ok to include spouse's income when applying for credit. Or is it generally, use only your income, unless it is specifically stated that its OK to use spouse's income. That 'other income' box I see on most apps is really not that clear on what is, or not, considered as other income.

Re: Income on Applications for Credit

Repo-ed — Tue, 08 Jan 2013 17:46:54 GMT

i put my own, and under report it.

Re: Income on Applications for Credit

bigman023 — Tue, 08 Jan 2013 18:24:30 GMT

OK, I just read somewhere that one can no longer use spouse's income because of the new law, Dodd-Frank. This law supposedly takes away the ability for housewives to apply for credit using husband's income. It became law in 2009. What I find weird is that in 2011, I was actually told to use spouses income when I applied for GE cards in 2 different stores. Maybe the rule only applies to cards issued by banks.

Im really wanting a high limit credit card this year, and was looking for a way to boost my chances. DW & I both make over $55K, our mtg paymnt is $1320, which may be hurting my debt - income in the eyes of a CCC's UW. I guess Ill know for sure in a few months.

Thanks for your input.

Re: Income on Applications for Credit

youngandcreditwrthy — Tue, 08 Jan 2013 18:43:52 GMT

Certain posters here like to argue about the legality of using household income.

HOWEVER, IME.... it's a good FICO that gets you a high limit. I've reported HHI and my Indi Income and regardless of the income I report, I still get the limits and increases that I want typically because my FICO is decent (700-740).

The CARD Act/Dodd-Frank only says an issuer cannot ask specifically for household income.... but that an applicant may choose to use household income on an application...

so partake in your freedom as an American and use HHI :-)

or if you're prude, scared, and can't handle credit.. use indi income...

totally UP TO YOU... per the CARD Act.

And for those nonbelievers, check the spec language of the CARD Act; you may be surprised.

:-D Best of luck!

Re: Income on Applications for Credit

bigman023 — Tue, 08 Jan 2013 19:38:53 GMT

interesting observation...

Re: Income on Applications for Credit

youngandcreditwrthy — Tue, 08 Jan 2013 19:40:36 GMT

hahah thanks? :-)

Re: Income on Applications for Credit

Anonymous — Tue, 08 Jan 2013 19:53:51 GMT

Legality aside, I think it's a little disingenuous to provide inflated income. This is YOUR card so you should provide YOUR income. If I put $250k income as a 21 year old kid living at home, would you say that's an accurate depiction of my income? I wouldn't think so.

But all that's my opinion. I really don't know if you're legally allowed to use household income or just individual income.

Re: Income on Applications for Credit

Epcot — Tue, 08 Jan 2013 20:08:51 GMT

If it just asks for income, I state my own.

But on my last app with Chase it said something along the lines as: 'Please put in the total available income/assets/cash that I have access to in order to repay any debts to Chase'

Re: Income on Applications for Credit

bigman023 — Tue, 08 Jan 2013 20:09:33 GMT

My personal opinion is that HHI should be allowed if you reasonably have access to those funds. Housewives are a good example. Also, when UW is considering debt to income ratios, I think its reasonable to use HHI, especially if both spouses share responsiblity for bills, ie mortgage.

Is it legal? Maybe, maybe not. Im here looking for more clarrification on the issue, as I always want to do whats legal. But my personal opinion is what it is. I will probably end up asking whatever card issuer I decide to app for.

Re: Income on Applications for Credit

djrez4 — Tue, 08 Jan 2013 20:15:10 GMT

You guys are touching on a recent change to regulations promulgated under the CARD Act. Last year, housewives or house husbands technically couldn't get credit cards because they couldn't report that they have ny of their own money. The CFPB changed the rule at the end of last year to include income you have access to - basically, household income. So, where before it was technically illegal to report HHI on a credit app, it's ok now.

Re: Income on Applications for Credit

Anonymous — Tue, 08 Jan 2013 20:17:16 GMT

@youngandcreditwrthy wrote:
Certain posters here like to argue about the legality of using household income.

HOWEVER, IME.... it's a good FICO that gets you a high limit. I've reported HHI and my Indi Income and regardless of the income I report, I still get the limits and increases that I want typically because my FICO is decent (700-740).

The CARD Act/Dodd-Frank only says an issuer cannot ask specifically for household income.... but that an applicant may choose to use household income on an application...

so partake in your freedom as an American and use HHI :-)

or if you're prude, scared, and can't handle credit.. use indi income...
totally UP TO YOU... per the CARD Act.

And for those nonbelievers, check the spec language of the CARD Act; you may be surprised.

:-D Best of luck!

LMAO! Thank you!!

Re: Income on Applications for Credit

Anonymous — Tue, 08 Jan 2013 20:19:02 GMT

@djrez4 wrote:
You guys are touching on a recent change to regulations promulgated under the CARD Act. Last year, housewives or house husbands technically couldn't get credit cards because they couldn't report that they have ny of their own money. The CFPB changed the rule at the end of last year to include income you have access to - basically, household income. So, where before it was technically illegal to report HHI on a credit app, it's ok now.

Thank you!!!! I just posted this in a thread and some acted like I had three heads!!

Re: Income on Applications for Credit

djrez4 — Tue, 08 Jan 2013 20:23:49 GMT

@Anonymous wrote:
@djrez4 wrote:
You guys are touching on a recent change to regulations promulgated under the CARD Act. Last year, housewives or house husbands technically couldn't get credit cards because they couldn't report that they have ny of their own money. The CFPB changed the rule at the end of last year to include income you have access to - basically, household income. So, where before it was technically illegal to report HHI on a credit app, it's ok now.
Thank you!!!! I just posted this in a thread and some acted like I had three heads!!

Facts aren't generally received well when beliefs and emotions are involved.

Unless...do you have three heads?

Re: Income on Applications for Credit

cashnocredit — Tue, 08 Jan 2013 20:27:39 GMT

@Anonymous wrote:
@djrez4 wrote:
You guys are touching on a recent change to regulations promulgated under the CARD Act. Last year, housewives or house husbands technically couldn't get credit cards because they couldn't report that they have ny of their own money. The CFPB changed the rule at the end of last year to include income you have access to - basically, household income. So, where before it was technically illegal to report HHI on a credit app, it's ok now.
Thank you!!!! I just posted this in a thread and some acted like I had three heads!!

I thought this new CFPB admin. rule was fairly well known!

Re: Income on Applications for Credit

Anonymous — Tue, 08 Jan 2013 20:27:58 GMT

@djrez4 wrote:
@Anonymous wrote:
@djrez4 wrote:
You guys are touching on a recent change to regulations promulgated under the CARD Act. Last year, housewives or house husbands technically couldn't get credit cards because they couldn't report that they have ny of their own money. The CFPB changed the rule at the end of last year to include income you have access to - basically, household income. So, where before it was technically illegal to report HHI on a credit app, it's ok now.
Thank you!!!! I just posted this in a thread and some acted like I had three heads!!
Facts aren't generally received well when beliefs and emotions are involved.

Unless...do you have three heads?

Fortunately, not!

Re: Income on Applications for Credit

youngandcreditwrthy — Tue, 08 Jan 2013 20:41:28 GMT

THANK THE CREDIT GODS!!!

haha

Eh, I just told Capital One my HHI for a CLI haha!!!!

:-D

Re: Income on Applications for Credit

tcbofade — Tue, 08 Jan 2013 20:52:36 GMT

I've noticed that more and more credit card applications specifically ask for either "your income" or "household income".

I provide whichever they ask for.

Re: Income on Applications for Credit

bigman023 — Tue, 08 Jan 2013 21:08:32 GMT

Thats pretty much what has me a bit confused. Although uxsing HHI it is allowed by law, does it mean that all banks must consider HHI, or do they have the ability to choose if they want to be a bank that uses HHI or just II. One poster in this thread has taken the position that its up to the consumer to choose which income they want to use, and banks process whatever you in input. If thats the case, that puts alot of 'choice' in the hands of consumers.

Re: Income on Applications for Credit

youngandcreditwrthy — Tue, 08 Jan 2013 21:12:52 GMT

And in America.... we like freedom of choice... right?

Consumers having freedom of choice is what makes our markets great :-) OBVIOUSLY, you don't want to lie.

I should try putting $1,000,000 as my income on a credit card app haha!

Re: Income on Applications for Credit

cashnocredit — Tue, 08 Jan 2013 21:14:38 GMT

@bigman023 wrote:
Thats pretty much what has me a bit confused. Although uxsing HHI it is allowed by law, does it mean that all banks must consider HHI, or do they have the ability to choose if they want to be a bank that uses HHI or just II. One poster in this thread has taken the position that its up to the consumer to choose which income they want to use, and banks process whatever you in input. If thats the case, that puts alot of 'choice' in the hands of consumers.

No. It does not require a bank to ask for HHI. If they just ask for "income" it is reasonable to interpret that as HHI. If they ask, and they are absolutely allowed to do this, for individual income then individual income is what should be used. Prior to this, banks were not supposed to consider anything but individual income.