Income question

[vayub4]

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@redbeard wrote:

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@CreditCuriousity wrote:

Regardless people are always going to do what they want and until banks require you to provide proof of income by pay checks or whatever method prior to approval chances are some people will "elaborate" their income.  CU's usually do this, but bank for some reason mainly don't.  

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I think big banks have a way to verify 'online' what your approximate income is.  If what you claim is related to what they find in their system, its not an issue.  If it appears off the wall, they may ask for proof.  

I know Equifax and probably many others provide general household income data.  Where they get it from, I don't know, but it can be accessed while your doing the credit app.  Its probably not exact, but close enough to let the banks know if you are exagerating your income by a little or a lot.  

I'm not sure if banks use these online income verification services that exist during the app process (or CLI) but they do exist.

Dan

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I don't think there is a way to know. If they do it is probably some kind of algorithms based on your credit file to arrive at a figure. 

[Anonymous]

I put my exact income directly from my most recent tax return. Because I'm self employed, I expect to be asked for proof any time I apply for credit.

[Anonymous]

Being self-employed I put this amount down (see below) and hope that the UW doesn't ask me for verification, so far so good!  

[iv]

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@vayub4 wrote:

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@redbeard wrote:

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@CreditCuriousity wrote:

Regardless people are always going to do what they want and until banks require you to provide proof of income by pay checks or whatever method prior to approval chances are some people will "elaborate" their income.  CU's usually do this, but bank for some reason mainly don't.  

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I think big banks have a way to verify 'online' what your approximate income is.  If what you claim is related to what they find in their system, its not an issue.  If it appears off the wall, they may ask for proof.  

I know Equifax and probably many others provide general household income data.  Where they get it from, I don't know, but it can be accessed while your doing the credit app.  Its probably not exact, but close enough to let the banks know if you are exagerating your income by a little or a lot.  

I'm not sure if banks use these online income verification services that exist during the app process (or CLI) but they do exist.

Dan

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I don't think there is a way to know. If they do it is probably some kind of algorithms based on your credit file to arrive at a figure. 

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Well.. yeah.

http://www.transunion.com/corporate/business/solutions/financialservices/bank_income-debt-estimator....

http://www.experian.com/consumer-information/income-insight.html

https://www.equifax.com/business/personal-income-model

[LadyJEsq]

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@vayub4 wrote:

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@redbeard wrote:

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@CreditCuriousity wrote:

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@vayub4 wrote:

I input whatever comes to my mind.... I try not to ever go above 100k...... I've only been asked for income verification once and that was for an auto loan not a credit card application.

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This is troublesome.

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Maybe, maybe not.

I'm self employed.  My income varies significantly and to some degree, for a short while, I can control my income by deciding how much business income I invest back in the business vs how much I take as personal income.

So, while I wouldn't word it as 'I input whatever comes to mind', there is a lot of randomness to my income and I completely get the feeling of this sometimes.

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Spousal income:  If you have a mortgage, its likely your largest bill.  Car loans are frequently joint as well.  They will show up on both credit reports (his and hers) as bills that have to be paid.  Its reasonable to use 'spousal income' to offset some of these bills when the computer does a DTI comparison.  I just use half of my income (self employed, it varies) and all of hers so I can have a relatively consistent number to put into this.

Dan

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+2! I buy phones and resell. Sometimes I buy a phone off of ebay and resell on amazon for $100+ in profit. Same with craigslist and all. When you factor in all the points I can accumulate on a cc, the profit can go as high as $110 per phone. I have never missed a payment in my life! I run my cards high sometimes over their limits and still pay them in full before the month runs out.

I am one of the people who believe income should never be used as a measure to know who will pay or who would not. There are people who earn millions but some how still manage to file bankruptcy after they run up all their cards. I have decent amount of credit but that has never pushed me to go above what I know I can afford.

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Aren't you violating the rewards T&C by making a purchase with your CC and then reselling?