topic Re: self employed on credit card application???.. in Credit Cards

self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 03:27:48 GMT

my question is do creditors give lower limits to those with no proof of income?

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 03:30:24 GMT

yes. its better to state you are employed and the name of the company is the name of your company.

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 03:33:01 GMT

so i shoul state that i am employed? i have no proof income tho no pay stubbs or nothinglike that😟

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 03:34:19 GMT

I am self employed and have never been asked to send any verification. Credit card limits and increases have not been affected. If requested do you have a 1099 or tax returns to verify your employment?

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 03:41:24 GMT

I was self employed more than 10 years and I always had myself on payroll in my corporation to protect myself. small amount on w2's and then i could just write a check to myself as a bonus.

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 03:48:55 GMT

i dont?? i actually dont know what a 1099 is?

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 04:07:37 GMT

Are you running a lemonade stand?

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 04:10:18 GMT

@Anonymous wrote:
Are you running a lemonade stand?

HAAAAAAA!

Re: self employed on credit card application???..

Skye12329 — Mon, 17 Nov 2014 04:13:39 GMT

@Anonymous wrote:
i dont?? i actually dont know what a 1099 is?

A 1099 is a tax form that you generally get from employers so you can file taxes. Im not sure on how it works with self employed though.

Re: self employed on credit card application???..

awp317 — Mon, 17 Nov 2014 05:43:02 GMT

Im technically self employed in that I run my own company. But Im on a set salary where the company checking account is drawn from twice a month into my personal checking automaticly (which happens for every employee of the company) and it has been that way for 10 years at least. So I always state employed as president of said company and put my salary. Self employed I think is for people who dont go through the motions of getting incorperated and such. When I got my mortgage they did it that way as well, so I dont see it as being deciving.

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 07:41:56 GMT

Don't say self employed. Say entrepreneur or ceo/president of the company you run. If it asks for both employer and occupation put Self employed as your employer and Entrepreneur for your occupation. No questions asked.

Entrepreneur can mean a lot of things. Can mean you own and run more than one company. As long your credit score is satisfactory and salary you put down does not look fishy according to your Debt-to-income ratio than you're good to go. But If you say you make $100,000 a year but your utilization is 50% then you got some explaining to do and if not declined, you'll be lucky if they even pend your application and ask for further details. This can happen after being approved as well. If you go ranking all your credit cards and raising your utilization like a fool or changing your spending habits in any way you will get FR (American express) or asked for an explanation. I honestly don't think it's anyone's business what you do for a living they just need to know you're paying your bills on time and if given a credit limit that you've shown either with them or another creditor on your credit report that you have the means to support that credit limit. That's why AAoA and the length of employment can be very handy and important to creditors.

Re: self employed on credit card application???..

awp317 — Mon, 17 Nov 2014 07:41:05 GMT

A couple of my accounts like lowes (ge) they never even ask your occupation, they just want to know your net income. Really just depends on the bank. Chase never asks what my mortgage payment is, yet Citi does.

Re: self employed on credit card application???..

Anonymous — Mon, 17 Nov 2014 07:53:11 GMT

@awp317 wrote:
A couple of my accounts like lowes (ge) they never even ask your occupation, they just want to know your net income. Really just depends on the bank. Chase never asks what my mortgage payment is, yet Citi does.

Yup. Just don't go ranking all your credit cards and raising your utilization like a fool or changing your spending habits in any way or you will get FR (American express) or asked for an explanation. I honestly don't think it's anyone's business what you do for a living they just need to know you're paying your bills on time and if given a credit limit that you've shown either with them or another creditor on your credit report that you have the means to support that credit limit.

Re: self employed on credit card application???..

bada_bing — Mon, 17 Nov 2014 07:57:03 GMT

I have a sideline business that I am sole proprietor of. I file a schedule C tax form every year for my self employed income.

I also am full time employed by an evil mega-corp. They give me a yearly 1099.

I make about 80% of income from wages and 20% from self employment.

Last year I app'd for a Chase Freedom, reporting only my wage income and got a $10K CL.

I app'd for an Ink Cash, reporting my schedule C self employment income and got a $24K CL.

I don't think that being self employed matters as long as you have tax forms to back up reported

income, if requested. Chase certainly thought a lot more of my little side biz than they do of my salary,

going by what CL they thought each warranted.

Re: self employed on credit card application???..

JSS3 — Mon, 17 Nov 2014 14:37:01 GMT

@bada_bing wrote:
I have a sideline business that I am sole proprietor of. I file a schedule C tax form every year for my self employed income.
I also am full time employed by an evil mega-corp. They give me a yearly 1099.
I make about 80% of income from wages and 20% from self employment.

Last year I app'd for a Chase Freedom, reporting only my wage income and got a $10K CL.
I app'd for an Ink Cash, reporting my schedule C self employment income and got a $24K CL.

I don't think that being self employed matters as long as you have tax forms to back up reported
income, if requested. Chase certainly thought a lot more of my little side biz than they do of my salary,
going by what CL they thought each warranted.

Chase tends to give higher credit limits than the last unless you're at the end of an app spree which includes a couple of cards with them. You have a year of history with Chase and they gave you 10 to start. Assuming you put much use through your first card, it's not a stretch that they doubled your next card because of what I've just listed and not necessarily because they, "Thought more of your side business".

Re: self employed on credit card application???..

09Lexie — Tue, 18 Nov 2014 21:27:06 GMT

There are plenty of self employed persons with high CLs, quite a few or active members of myFICO. To answer that you are not self employed would depend on how your company is structured. For instance a sole proprietor would be self employed (and it would be reflective on their tax returns with s/e tax).

Whether or not a creditor asks for proof of income should not change your answer. Honesty is always the best approach and completing an application in which you knowingly provide false information, is asking for trouble.

Re: self employed on credit card application???..

Anonymous — Wed, 19 Nov 2014 02:04:04 GMT

yup

Re: self employed on credit card application???..

Anonymous — Wed, 19 Nov 2014 02:05:20 GMT

@Anonymous wrote:
Are you running a lemonade stand?

Stop it.. I just pilled my tea giggling..

Re: self employed on credit card application???..

taxi818 — Wed, 19 Nov 2014 02:18:20 GMT

@Anonymous wrote:
my question is do creditors give lower limits to those with no proof of income?

im self employed. most don't even verify but take your word for it. so no. they still give good limits. but i have plenty of proof of my income. a zillion tax returns. and most lenders love em.

Re: self employed on credit card application???..

taxi818 — Wed, 19 Nov 2014 02:22:25 GMT

ok so you know for sure what 1099 is. it is a form where you as indepedent contractor was paid for services. example . if you are a plumber. and another company paid you for the work but you are self employed and did not get a pay check. you will get a 1099.

in my case in a taxi. i run 30k a year in credit cards thru another company. they give me a 1099 for all the cards i ran. its not income. its just saying. im self employed. then i file my taxes and that is all the proof i need. hence the form. 4506 t. for them to request transcripts. no one has ever asked except when i went to the credit union to get a loan. they wanted to see tax returns. and for a coming car loan from bank. tax returns. but if i went to dealer. they can care less. long as they can run my credit report . so hope you understand now.