Synchrony asking friend for 4506t

[Loquat]

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@kdm31091 wrote:

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@MJ-san wrote:

I'm starting to wonder if issuers like Comenity and Sync aren't doing TheWorkNumber or other income verification pulls ... comparing to info on file ... and if there's a big discrepancy, flagging accounts for more intensive review (i.e. 4506T). Barclay last year changed their card agreements to explicitly state they would collect employment and income information from 3rd parties. 

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Well as long as you are being honest on your applications, there's no reason to worry about it.

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+1000

[Anonymous]

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@MJ-san wrote:

I'm starting to wonder if issuers like Comenity and Sync aren't doing TheWorkNumber or other income verification pulls ... comparing to info on file ... and if there's a big discrepancy, flagging accounts for more intensive review (i.e. 4506T). Barclay last year changed their card agreements to explicitly state they would collect employment and income information from 3rd parties. 

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A lot of card companies pull info from 3rd parties like LexisNexis, Sagestream/IDA, Innovis and others and have been doing that for years. Half of the information on those 3rd party databases is not even correct, unfortunately.

[CreditCuriosity]

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@kdm31091 wrote:

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@MJ-san wrote:

I'm starting to wonder if issuers like Comenity and Sync aren't doing TheWorkNumber or other income verification pulls ... comparing to info on file ... and if there's a big discrepancy, flagging accounts for more intensive review (i.e. 4506T). Barclay last year changed their card agreements to explicitly state they would collect employment and income information from 3rd parties. 

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Well as long as you are being honest on your applications, there's no reason to worry about it.

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OP never stated whether she claimed that on her taxes being tips, if not then there is a huge issue not only with a lender, but possibly the IRS in the future...  The IRS is no fun to play with, ask me how i know as I was audited and they froze my bank accounts and garnished my wages for a few days until it was cleared up (they had an old address the sent a warning to first) which I never received.

[RonM21]

Anything to avoid the IRS. That would be miserable to go through. As mentioned, I do think being honest in the application would be smart, in the event that something like this arises.

[Anonymous]

I wonder if she can get the new ones removed from her report.  They were a month old and never used.  What a waste.

[CreditCuriosity]

Nope.

[Anonymous]

I feel like an ass because it's my fault. I told her to get those because I knew the limits could be pushed high as they would offer a buffer for her credit and increase her score.  Now she's got 2 dead cards that are going to follow her for 10 years.

[MJ-san]

I think that with so many issuers using the third party databases, we're going to have to accept that income is going to be more "widely available" ... remember, Equifax owns TheWorkNumber and is actively marketing it as a risk management product. 

I'm OK with the CONCEPT of verifiable income -- I also believe we should all be honest on our applications -- but there are always going to be "special" circumstances - one spouse getting disability or SocSec, tip income not being accurately reported, business owner, etc. 

I'm NOT OK with the current spate of inaccurate reporting systems. I've looked at my TheWorkNumber report a few times and it's only reporting the final NET income - not gross - which is after all taxes, insurance deductions (including car, home, life), max'd out 401k contribution, charitable donation (that gets matched by employer), etc. I would assume that if one had child support or alimony, that would also be in the net calculation. My report also has an "hourly" rate of pay showing, although a substantial amount of my comp. is variable based on performance, so not sure how that all is viewed. 

[kdm31091]

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@Anonymous wrote:

I feel like an ass because it's my fault. I told her to get those because I knew the limits could be pushed high as they would offer a buffer for her credit and increase her score.  Now she's got 2 dead cards that are going to follow her for 10 years.

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Unfortunately, while we all want the cushion/buffer, it's not like lenders just want to hand out huge limits to anyone and everyone. I think sometimes in the "credit world" we forget that we're basically asking for a loan of sorts, and so income/debt come into play. It's not just a matter of calling the magic phone number and getting a 25k limit. You have to weigh the pros and cons of any decision.

I think it's a good thing to have some type of buffer for emergencies but it's also easy to get carried away and become overexposed.

It's not like the dead cards are really going to hurt anything though. The damage of the original HP and AAOA hit is over, and they'll just age and fall off. It's not like they are a derog or anything. "Closed by lender" is not really that big of a deal.

[MJ-san]

One more thing ... while thinking of it I pulled my most recent TheWorkNumber report. Same errors today. But, even though it CLEARLY says there is a freeze on this SSN and need to generate a KEY to allow access, I see that Amex peeked at it in December. So there's another data point - AMEX is using TWN.