Discover 4506-t

[MichWolverines1983]

I am still fairly new to credit cards and in the process of building credit for the very first time. I have two cards at the moment;

1. Capital One Secured - $200 Limit

2. Discover It (Recently Unsecured) $1,800 Limit ($200 originally)

The Discover card was opened in September of last year. When I opened the account I just started a new job and had not been working the entire year because of COVID. I put $60,000 for income, which is what was expected at the time. Unfortunately, the company did not honor their agreement and I walked away from the position. I am starting a new job soon and will make just over that amount by the end of the year. Will Discover request tax returns on me and ask me to sign the 4506-t form? What should I do to prevent the card from being closed if that happens? Does Discover request income verification after secured cards are now unsecured? I have been responsible with the card and my credit building is going great. I do not want to lose the card. Thoughts, opinions, advice?

[Remedios]

They haven't asked you, so relax.

If they happen to ask, and you're willing to give them access to your tax returns, you should do that but also ask if they would accept bank statements in addition to tax returns. 

Keep in mind that whatever happens with your new job, Discover won't be able to "see" it via tax return until August of 2023 and you won't have a full year of reported income present at that time. 

What you can do is lower the income that you put down, you can do it via app or website. Put down your current income, nothing is going to happen to your current CL.  If you have a spouse and you're filling together, joint income is okay. 

If you're single and currently without income source, don't keep $60K as income and don't ask for increases because when you do, you're required to verify your income.

Discover does ask for tax returns when discrepancies are discovered, so best thing you can do is not have $60,000 as your stated income for the second year in a row and its inaccurate for second year in the row.

Hopefully, you won't get a request and you're just worried over nothing, but in the case you do end up with one, take steps right now that ensure you're as close to the accurate as possible.  

My daughter was only making about $17,000 in passive income when she applied and her limit is double what yours is now, so no need to worry about CLD.  

I think you'll be just fine and congrats on your rebuilding progress. 

[MichWolverines1983]

Thank you! So, I just updated my income through the Discover app that could be verified from last year, which was $2165.00 income on my return this year. Yeah, corona messed things up big time. Thankfully, my fiance didn't lose her job and it didn't make things much worse. Unfortunately, we are not married yet and I will not be able to put her down as spouses income.

Thanks for telling me about not asking for increases. I didn't plan on it but good to know about Discover asking for proof of income when you do. I'm happy with the $1,800 limit at the moment. 

[Kforce]

---

@Remedios wrote:

They haven't asked you, so relax.

If they happen to ask, and you're willing to lie them access to your tax returns, you should do that but also ask if they would accept bank statements in addition to tax returns. 

Keep in mind that whatever happens with your new job, Discover won't be able to "see" it via tax return until August of 2023 and you won't have a full year of reported income present at that time. 

What you can do is lower the income that you put down, you can do it via app or website. Put down your current income, nothing is going to happen to your current CL.  If you have a spouse and you're filling together, joint income is okay. 

If you're single and currently without income source, don't keep $60K as income and don't ask for increases because when you do, you're required to verify your income.

Discover does ask for tax returns when discrepancies are discovered, so best thing you can do is not have $60,000 as your stated income for the second year in a row and its inaccurate for second year in the row.

Hopefully, you won't get a request and you're just worried over nothing, but in the case you do end up with one, take steps right now that ensure you're as close to the accurate as possible.  

My daughter was only making about $17,000 in passive income when she applied and her limit is double what yours is now, so no need to worry about CLD.  

I think you'll be just fine and congrats on your rebuilding progress. 

---

^^^ This

My daughter has a part time income of 9,250/yr.

Got a Discover 2-3 years ago, started with $1,500 CL

Auto CL increase to $3,500 last year.

Your CL should not be reduced with a correct income number

Change current income and don't ask for a CL increase.

[MichWolverines1983]

Thank you! I put the amount in that could be verified from tax return. When I do update it, do I need to wait until tax time next year and put what I made between now and 12/31 or should I put what I would've made if I worked the entire 2022 year with current income?

[Kforce]

---

@MichWolverines1983 wrote:

Thank you! I put the amount in that could be verified from tax return. When I do update it, do I need to wait until tax time next year and put what I made between now and 12/31 or should I put what I would've made if I worked the entire 2022 year with current income?

---

I would put what is easy to verify by the method that an issuer uses most often..

Many lenders ask for last 2 or 3 pay stubs.

Discover and AmX use the 4506-? (Tax's)

I believe time & good payments are more important for CL increases than income.

Yes income is an important factor, however exaggerating is not worth the risk of AA.

[MichWolverines1983]

Thank you. I have no desire to lie about anything. I guess the next time I update my income will be tax time of next year and I'll put what I make between now and Dec 31st., 2022. All of the income between now and then will be verifiable through check stubs and tax return next year. Thanks again, guys. Very much appreciated!

[W261w261]

Speaking strictly as an observer, it seems to me that Disco pulls the 4506 trigger quite a bit. Imo, more than anyone else. 

[K-in-Boston]

Multiple posts have been removed for advocating fraud.  Any discussion of that is not allowed here and is a violation of the myFICO Forums Terms of Service.

[rosco75]

---

@K-in-Boston wrote:

Multiple posts have been removed for advocating fraud.  Any discussion of that is not allowed here and is a violation of the myFICO Forums Terms of Service.

---

My apologies for my part. The reason I asked was because it def sounded sus to me. Thank you for the quick response!