REALLY? "You may include somebody else's income"?!

[Anonymous]

So I was browsing the capital one and citi cards that I was pre-qualified for and I thought this was strange when it asked about annual income:

Capital One: "You may include personal income, which is income you have earned, including full-time, part-time, or seasonal jobs, self-employment, interest or dividends, retirement, and public assistance. You may also include shared income, which is money from somebody else that is regularly deposited into your individual account or into a joint account that person shares with you. If you are over 21, you may also include somebody else's income that is regularly used to pay your expenses. "

Citi: "If you are 21 or older, you may include salary and wages that you can reasonably access to pay your bills."

First question: Is this a new thing or has this always been like this for capital one and citi.

Second: Could I actually rely on this statement and not get in trouble. My income isn't high right now because I'm a student, but my father supports me financially with his income as well. Would I be able to put BOTH our incomes down? It just makes me feel really strange, like I wouldn't want to list ALL of his income as accessible but I know with my income alone I would probably get a low limit.

Any thoughts? Or has anyone had any problems when including someone elses income when it CLEARLY states its okay?

[gdale6]

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@Anonymous wrote:

So I was browsing the capital one and citi cards that I was pre-qualified for and I thought this was strange when it asked about annual income:

Capital One: "You may include personal income, which is income you have earned, including full-time, part-time, or seasonal jobs, self-employment, interest or dividends, retirement, and public assistance. You may also include shared income, which is money from somebody else that is regularly deposited into your individual account or into a joint account that person shares with you. If you are over 21, you may also include somebody else's income that is regularly used to pay your expenses. "

Citi: "If you are 21 or older, you may include salary and wages that you can reasonably access to pay your bills."

First question: Is this a new thing or has this always been like this for capital one and citi.

Second: Could I actually rely on this statement and not get in trouble. My income isn't high right now because I'm a student, but my father supports me financially with his income as well. Would I be able to put BOTH our incomes down? It just makes me feel really strange, like I wouldn't want to list ALL of his income as accessible but I know with my income alone I would probably get a low limit.

Any thoughts? Or has anyone had any problems when including someone elses income when it CLEARLY states its okay?

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The 21 yr old stuff came into existence with the Card act of 2010. I would not put down your dads income unless he is helping you pay the CC bills.

[Anonymous]

Hmm thanks for the info!

Thing is right now he is paying for at least some of my credit cards and giving me support until I graduate (I already have a job lined up). I do feel sketchy putting all of it down, but if he has given me for instance like 5,000 in support for me to use for car payments, credit card payments, etc. Would I be justified in including that?

I'm not really looking to get any new cards right now, but I wanted to know if this was a legitimate source for future reference. 

[CreditScholar]

The change was mostly intended to accomodate stay at home spouses who had no income of their own.

With the changes that were phased in several years ago, people were only allowed to put down their own personal income and as such, there was a huge backlash from housewives and househusbands. Since they had no earning power on their own, they were essentially shut out of credit. That 21 year old clause was implemented as an attempt to rectify that situation, although I don't think it was meant for adult kids to use their parents income.

[Anonymous]

haha thanks, very interesting!  you can definitely see how that clause can be abused though! It seems much too generic of a line. Just to be safe though I'm not going to apply for anything till I can start making some real money on my own  I'm getting restless even though I am done in 2 months!! woohoo

I do wonder what an analyst would say if someone did mis-understand the intention of the clause.

[CreditScholar]

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@Anonymous wrote:

haha thanks, very interesting!  you can definitely see how that clause can be abused though! It seems much too generic of a line. Just to be safe though I'm not going to apply for anything till I can start making some real money on my own  I'm getting restless even though I am done in 2 months!! woohoo

I do wonder what an analyst would say if someone did mis-understand the intention of the clause.

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They would probably AA they account.

[gdale6]

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@Anonymous wrote:

Hmm thanks for the info!

Thing is right now he is paying for at least some of my credit cards and giving me support until I graduate (I already have a job lined up). I do feel sketchy putting all of it down, but if he has given me for instance like 5,000 in support for me to use for car payments, credit card payments, etc. Would I be justified in including that?

I'm not really looking to get any new cards right now, but I wanted to know if this was a legitimate source for future reference. 

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put the 5K as added income as it is cash you are receiving.

[NikoD]

Interesting, I live with my brother so I can take care of his kids. He pays for many of my expenses outright and also gives me cash. I would never try to claim his entire income as my own but it sounds like I'm allowed to add the money he gives me as added income? A lot of the stuff I charge on my credit cards are household/childcare related stuff that he pays me back for also.

[CreditScholar]

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@NikoD wrote:

Interesting, I live with my brother so I can take care of his kids. He pays for many of my expenses outright and also gives me cash. I would never try to claim his entire income as my own but it sounds like I'm allowed to add the money he gives me as added income? A lot of the stuff I charge on my credit cards are household/childcare related stuff that he pays me back for also.

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The issue here would be if you're ever required to submit proof of income via 4506-T, paystubs, etc.

If you're ever hit with something like a FR, you might run into trouble if the difference between your declared income vs. what you can prove is too high.

[pipeguy]

This veribage reflects a new CFPB rule :

http://www.consumerfinance.gov/newsroom/the-cfpb-amends-card-act-rule-to-make-it-easier-for-stay-at-...

Specifically for stay at home spouces (et al), but it also allows for joint income or "household income" which is how it used to be before the CARD Act..