Credit Card Income

Brian_Earl_Spilner · ‎05-15-2018

When you guys apply for credit cards, what income do you provide? I think it's normal to add your significant other for a home or auto loan, but do you do the same for credit cards? Me and the wife keep our finances separate so I don't add her, but I have added my 401k when asked about assets, like during my Discover app. Though I normally don't. Just curious if anyone does, and why, like is it to try to get higher limits. Am I "leaving money on the table" by not adding her and my 401k to all of my accounts?

Jnbmom · ‎05-15-2018

If they ask for "household" income then I do include my spouse, but if they don't I just put down my own income.

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Anonymous · ‎05-15-2018

Just read the description of what the lender with which you are applying states regarding income. Some may say your income. Some may say household income. Some may say all income with which you have reasonable access to.

I think CCCs keep this description quite vague at times simply because they want people to put in a higher number, as it will only lead to more approvals landing them more customers. Just my opinion of course.

iced · ‎05-16-2018

@Brian_Earl_Spilner wrote:
When you guys apply for credit cards, what income do you provide? I think it's normal to add your significant other for a home or auto loan, but do you do the same for credit cards? Me and the wife keep our finances separate so I don't add her, but I have added my 401k when asked about assets, like during my Discover app. Though I normally don't. Just curious if anyone does, and why, like is it to try to get higher limits. Am I "leaving money on the table" by not adding her and my 401k to all of my accounts?

I always put individual, even when it asks for household. Like you, we keep our finances separate we never report the other's income or assets, even on things like mortgages.

I follow a guideline that if I don't want it touched by the lender, I don't include it. As such, I will never include any retirement accounts in my assets when applying for money. If it means my limits are smaller, that's fine - I know I can afford to pay back what I'm borrowing without ever having to touch those assets. You are not "leaving money on the table" because credit limits are not money. That's the absolute wrong way to think about it.

Brian_Earl_Spilner · ‎05-16-2018

@iced wrote:
@Brian_Earl_Spilner wrote:
When you guys apply for credit cards, what income do you provide? I think it's normal to add your significant other for a home or auto loan, but do you do the same for credit cards? Me and the wife keep our finances separate so I don't add her, but I have added my 401k when asked about assets, like during my Discover app. Though I normally don't. Just curious if anyone does, and why, like is it to try to get higher limits. Am I "leaving money on the table" by not adding her and my 401k to all of my accounts?
I always put individual, even when it asks for household. Like you, we keep our finances separate we never report the other's income or assets, even on things like mortgages.

I follow a guideline that if I don't want it touched by the lender, I don't include it. As such, I will never include any retirement accounts in my assets when applying for money. If it means my limits are smaller, that's fine - I know I can afford to pay back what I'm borrowing without ever having to touch those assets. You are not "leaving money on the table" because credit limits are not money. That's the absolute wrong way to think about it.

See, that's how I look at it. Even our car loans are separate. The only thing that has ever been in both of our names is the house and like you, we don't include it in anything because it's paid off. I don't like adding my 401k, But I just answer the questions truthfully. I may stop including it from now on.

I was just curious because as I was browsing the forums and it seems like everyone has a $100k+ income or is spending $5-6k every month on their credit cards. Made me wonder if those numbers were household. I've had friends and family tell me I'm dumb for not including it and hers and I used leaving money on the table because it gets thrown around a lot here. Personally, I like the way we do it because we never argue about money which is the #1 thing couples fight about. In addition, if something were to happen, it would be a clean break, no alimony either way, like having a pre-nup without actually having one.

Just curious about what people do and what kind of advantage there is other than higher limits.

Anonymous · ‎05-16-2018

IME most CC apps say Household and specify states where different rules apply. The blurb usually goes something like 'any money you reasonably have access to' so in your case it sounds like for you that's really individual income.

Also, I think it's on Discover's CLI link the Asset question (which I am pretty sure is relatively new, at least it hasn't been there for many years) if you click for more info it specifies cash or cash like and it either specifically excludes retirement accounts or says something that made me interpret it as excluding retirement accounts. (I didn't go back to see if OP is talking about new app or CLI).

@Brian_Earl_Spilner

iced · ‎05-16-2018

@Brian_Earl_Spilner wrote:
@iced
See, that's how I look at it. Even our car loans are separate. The only thing that has ever been in both of our names is the house and like you, we don't include it in anything because it's paid off. I don't like adding my 401k, But I just answer the questions truthfully. I may stop including it from now on.

I was just curious because as I was browsing the forums and it seems like everyone has a $100k+ income or is spending $5-6k every month on their credit cards. Made me wonder if those numbers were household. I've had friends and family tell me I'm dumb for not including it and hers and I used leaving money on the table because it gets thrown around a lot here. Personally, I like the way we do it because we never argue about money which is the #1 thing couples fight about. In addition, if something were to happen, it would be a clean break, no alimony either way, like having a pre-nup without actually having one.

Just curious about what people do and what kind of advantage there is other than higher limits.

We're on the same page then. In our case, the only two things that's in both of our names is auto/home and dental insurance, and that's because we got a discount for going in together on them. Insurance is pretty easy to split should the worst happen.

And yes, some (but not all) people here are reporting household income when they say income. Roughly 5% of the US workforce earns $150k or more per year, so it's generalized but reasonable to assume around 5% of the people on this forum individually earn $150k or more per year. You will also see an upward skewing of income because some personal/small business owners here will report business revenue as their income.

Anonymous · ‎05-16-2018

@Anonymous wrote:
IME most CC apps say Household and specify states where different rules apply. The blurb usually goes something like 'any money you reasonably have access to' so in your case it sounds like for you that's really individual income.

Also, I think it's on Discover's CLI link the Asset question (which I am pretty sure is relatively new, at least it hasn't been there for many years) if you click for more info it specifies cash or cash like and it either specifically excludes retirement accounts or says something that made me interpret it as excluding retirement accounts. (I didn't go back to see if OP is talking about new app or CLI).
@Brian_Earl_Spilner

Correct.

I was just about to post the same thing.

QuakerOatmeal · ‎05-16-2018

For AMEX, they state on their application:

"Include all income available to you. If under age 21, include only your own income. Income includes wages, retirement income, investments, rental properties, etc. Alimony, child support, or separate maintenance need not be revealed if you do not wish to rely upon it."

But in truth if any income "available to you" isn't listed on tax documents and you get FRed, you're screwed.

iced · ‎05-16-2018

@QuakerOatmeal wrote:
For AMEX, they state on their application:

"Include all income available to you. If under age 21, include only your own income. Income includes wages, retirement income, investments, rental properties, etc. Alimony, child support, or separate maintenance need not be revealed if you do not wish to rely upon it."

But in truth if any income "available to you" isn't listed on tax documents and you get FRed, you're screwed.

That's the beauty of not reporting household - it's the safest play. If I do get FR'd by a bank, they'll see that I actually have substantially more income available than what I reported since the tax documents would show both of our incomes.