SAHM, Unemployed or Other?

Anonymous · ‎10-22-2015

For all the stay at home parents out there. Do you put "Unemployed" or "Other" on apps? I recently applied for an Amex and one of the denial reasons was annual income insufficient or missing. I'm 99% certain I filled it out correctly. So it got me to thinking that maybe seeing unemployed plus $75k income just didn't look good. I also wanted to try for a cli on my Venture but couldn't remember what I put on the original app. This question always trips me up lol! So what do you guys do?

UncleB · ‎10-23-2015

@Anonymous wrote:
For all the stay at home parents out there. Do you put "Unemployed" or "Other" on apps? I recently applied for anAmex and one of the denial reasons was annual income insufficient or missing. I'm 99% certain I filled it out correctly. So it got me to thinking that maybe seeing unemployed plus $75k income just didn't look good. I also wanted to try for acli on my Venture but couldn't remember what I put on the original app. This question always trips me uplol! So what do you guys do?

I'm not going to say what you should do, but I can provide a data point.

When I bought a new car a few years back, I filled out the application at the dealership and I checked the box for 'Other' since legally I'm considered a 'contractor'. When the finance guy ran my numbers, he told me with my credit score the application would be auto-approved if I checked 'Employed', however by choosing 'Other' there was a whole different level of verification required, and it could be lengthy. To simplify matters, I just put 'Employed' and listed the firm I was with as my 'Employer' and the app was approved within minutes.

Back to your question... Amex is a little different than other issuers, since they are infamous for their FRs if they feel your spending is out of the ordinary (whatever 'ordinary' is). For most issuers, you don't even have to list who you work for or what you do... you just check the box for 'Employed' and enter your income, and you're good to go. For better or for worse, with most issuers if you select anything other than 'Employed', you're going to go to verification of some sort, or like you personally experienced with Amex, just a flat denial.

Since this thread is specific to Amex, I'll add this... if it were me - in this specific situation - I would give Amex a call. Their CSRs are generally more well-versed than other issuers when it comes to things that are a little 'out of the box', and they will be able to advise you how to move forward. It could be possible that they can take your information over the phone and correct the entries that caused your first denial, allowing you to be approved. There's no guarantee, but there's nothing to lose other than an inquiry, and if it works out it would be worth it in the end.

Hope this helps!

Anonymous · ‎10-23-2015

My husband is on disability. Many creditors just simply ask annual income like Citi. Others like Amex ask specific income source. Unemployed, employed, other. He always puts employed then combines our income as a family because well most creditors tell you as long as you're over 21 and you have reasonable access to it, you can count it. I know HE is not employed but I am. I guess it's technically not the truth but he's never had a problem. If he flagged his application and they asked for proof of income it would be easier to explain.

Anonymous · ‎10-23-2015

Ok, so if I'm understanding correctly, putting employed (and claiming hubby's income) would most likely result in an easier approval. What if I did get approved and got FR down the road? Just explain that I'm using my husband's income so I said employed even though I'm not? I wish "Homemaker" was an option. Sure would make things easier! Unfortunately I think it's probably too late to recon this last attempt

It's been about 3 weeks.

UncleB · ‎10-24-2015

@Anonymous wrote:
Ok, so if I'm understanding correctly, putting employed (and claiming hubby's income) would most likely result in an easier approval. What if I did get approved and got FR down the road? Just explain that I'm using my husband's income so I said employed even though I'm not? I wish "Homemaker" was an option. Sure would make things easier! Unfortunately I think it's probably too late to recon this last attempt It's been about 3 weeks.

If your credit score and reported income met their qualifications, yes, choosing 'Employed' would most likely work.

The FR issue is unique to Amex... if it were any other lender, you wouldn't have to be too concerned with your reported information after the approval (assuming you paid you bill, of course). With Amex, if your spending gets outside of their comfort zone, there could be an FR, at which time you would have to explain the information reported on your application. If they wanted, at that time they could close the account. That is a hypothetical situation, but you could also use the card indefinitely with no issues whatsoever. All the talk of FRs on this forum is because many folks here tend to 'push the envelope'; if your spending is normal it's likely you have nothing to worry about.

I still say I would give Amex a call. I think after a denial you have to wait a little while (30 days?) but in another week or so give them a call, and just tell them your circumstances and that you would like to apply (I wouldn't be concerned with a recon - like you said, it's likely too late for that). It could very well be the CSR taking your information will know exactly what to do for your app to be approved.

mitchblue · ‎10-24-2015

I always put other. I'm disabled and they don't have that option. My income is modest and so far, CC's or loans, I haven't been asked for income verification yet. No big deal if they did but I'm glad they didn't, so far.

FICO® 8 Scores 821 FICO® 9 Equifax 826 (Updated 02-7-23)

Anonymous · ‎10-24-2015

Mitch, I noticed you have an AMEX. Did you put OTHER when you applied for it? Just curious because my husband is looking to apply in the coming months and he is on SSDI. I work so we put our combined income. Not sure if putting OTHER and $60,000 combining my income would seem sketchy and cause a denial.

delaney1 · ‎10-24-2015

I put other. I'm a SAHM.

mitchblue · ‎10-24-2015

@Anonymous wrote:
Mitch, I noticed you have an AMEX. Did you put OTHER when you applied for it? Just curious because my husband is looking to apply in the coming months and he is on SSDI. I work so we put our combined income. Not sure if putting OTHER and $60,000 combining my income would seem sketchy and cause a denial.

I put other. I used our combined income, with my wife, about 51k. And no problems. My BCP was given a nice SL too. Good luck.

FICO® 8 Scores 821 FICO® 9 Equifax 826 (Updated 02-7-23)

Imperfectfuture · ‎10-24-2015

Disabled. With resources. Put retired when I applied BCE, keep retired for SimplyCash. May change it up, or just ask for cli on BCE and transfer to SimplyCash. For business purposes, Amex has me separate the incomes, they get a little tight. The other companies let me combine, and I put retired or other (think discover is other), since majority of income is from SSDI and investment accounts.

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