When asked annual income on any application

[CreditCrusader]

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@dodgeball wrote:

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@Revelate wrote:

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@dodgeball wrote:

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@CreditCrusader wrote:
All this is just the logical extension of the reality of relationships circa 2013. Half of marriages end in divorce. Other pairings are often fleeting.

Bottom-line: CCCs can't issue credit predicated on household income when that income has a 50% chance of decreasing significantly after a divorce. Again, a reason for these lenders to conduct income verification every six months to ensure ability to pay is consistent.

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This would have dire consequences for the economy and would only lead to incresed contraction of GDP. They dont need responsible lending just not crazy lending. Horrible Idea

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I'm no economics expert but the idea of the credit market having a long-term effect on GDP, doesn't have a lot of merit to my knowledge.  

How is reducing fraud a bad thing, or responsible lending a poor idea for that matter?  As a matter of fact, it'd probably be a huge win for everyone as creditors would likely shift to a more aggressive lending stance than they have now if default rates from fraud went down.

Least with joint accounts, the reduction in income CC suggested doesn't track anyway: creditors can and will assign debts where they desire in a divorce is my understanding of it.  Any single accounts, no clue on that as it likely depends on state.  This is way off topic anyway .

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Im very well versed in the subject, part of the problem with todays econimy is the lack of lending at the buisness level and the consumer level. The Goverment wants you to go out and spend more they want you have to acces to easy credit. The whole econimy is built on the premise of credit and easy credit at that. When credit is hard to obtain you will see a increase in default at all levels.

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Since when is what the government wants you to do the best move? These are the same idiots who allow fractional reserve and a network of private banks to dictate monetary policy.

[dodgeball]

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@CreditCrusader wrote:

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@dodgeball wrote:

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@Revelate wrote:

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@dodgeball wrote:

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@CreditCrusader wrote:
All this is just the logical extension of the reality of relationships circa 2013. Half of marriages end in divorce. Other pairings are often fleeting.

Bottom-line: CCCs can't issue credit predicated on household income when that income has a 50% chance of decreasing significantly after a divorce. Again, a reason for these lenders to conduct income verification every six months to ensure ability to pay is consistent.

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This would have dire consequences for the economy and would only lead to incresed contraction of GDP. They dont need responsible lending just not crazy lending. Horrible Idea

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I'm no economics expert but the idea of the credit market having a long-term effect on GDP, doesn't have a lot of merit to my knowledge.  

How is reducing fraud a bad thing, or responsible lending a poor idea for that matter?  As a matter of fact, it'd probably be a huge win for everyone as creditors would likely shift to a more aggressive lending stance than they have now if default rates from fraud went down.

Least with joint accounts, the reduction in income CC suggested doesn't track anyway: creditors can and will assign debts where they desire in a divorce is my understanding of it.  Any single accounts, no clue on that as it likely depends on state.  This is way off topic anyway .

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Im very well versed in the subject, part of the problem with todays econimy is the lack of lending at the buisness level and the consumer level. The Goverment wants you to go out and spend more they want you have to acces to easy credit. The whole econimy is built on the premise of credit and easy credit at that. When credit is hard to obtain you will see a increase in default at all levels.

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Since when is what the government wants you to do the best move? These are the same idiots who allow fractional reserve and a network of private banks to dictate monetary policy.

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First of all I really wish that the banks did dictate monetary policy as i am not a fan of Federalism on any level other than defense. The fact of the matter is that you want to introduce legislation when no legislation is needed just for the fact the need to legislate a perceived problem that does not exsist. As I said before you really think that that banks if they thought it was in there best intrest of profit to implement  such reforms they would have already done it. 

Look at the causes of the housing crash without a political agenda and you will find that the causes of that crash where put well into place before the crash took place it just picked up steam the last two years when the bubble finally burst. That was crazy legislation that caused the crash. A moderate approach works best where the banks choose to lend who they deem fits best to maximize there profit.

[RSCo]

It can all be very confusing....

In my case I have 32k income, but also have over 140k in investments that I also pull from as the accounts continue to increase in value with the market....  Some sites like Amex says you can include any and all investment accounts... Some sites say you can include alimony or child support payments ect..

Went to my CU a couple days ago to get a CLI on my 13yo CC and brought my investment documents with me.. I've been with them for 13 years and have had 5 different loans from CCs to Mortgages and they have all been paid off years ago AND I WAS NEVER late on any of them.. EVER.. I even pay more per month on my credit card.. The only outstanding load with them is my CC and I wanted to get a CLI from 6k to 10k ( my first ever request for a CLI ).  They came back and only approved a 1,500.00 increase because they said my income was low.. I couldn't believe it given how long I was with them and considering every other loan Ive had with them has been paid off in full with ZERO lates on any... She told me my investment income did not matter - even though these funds can be tapped at anytime..  I was not a happy camper..  I'm writing a letter to the new President of the CU today..  I went thru a 2 day process to get a first ever increase in my CL and I brought all of my investment docs, more than I should be required to bring..  The CC that I asked for an increase on only has a 3k balance and I even paid if off completely a couple years ago..  I couldn't believe it..

[tinuviel]

Just a reminder, folks. There are 5 Things We Don't Talk About on these forums, and politics is one of those things. The conversation is drifting away from the thread topic as it is, so let's get back on track and remember to steer clear of political discussion. Your cooperation is appreciated.

[DaveSignal]

This thread has been going for quite a few pages.

When you are applying for a credit card or a loan for YOURSELF, and the creditor asks for income, they are asking for YOUR income.  Unless they ask for HOUSEHOLD INCOME, they are not looking for your wife's income, or your brother's income, or your best friend's income, even if your best friend loans you money sometimes.... They want YOUR income.

Of course, many creditors don't verify and you might be able to get away with just making up some large random number for your income.  This, however, is dishonest and immoral, in addition to the fact that it could later result in adverse action, your account being closed, or even possible fines.

EDIT:  and one more thought... if your spouse stays at home and does not work and cannot support his/herself on his/her own, then the working partner who earns the income should be helping the spouse by opening credit cards and loans using joint accounts.  If you are sharing a home and a single income, then you can share your credit too.

[youngandcreditwrthy]

It is quite irritating that whenever this question comes up, people begin to argue and start talking about the gov't! Heh!

Gotta love the idealogues! Haha (sp)

[tinuviel]

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@youngandcreditwrthy wrote:


It is quite irritating that whenever this question comes up, people begin to argue and start talking about the gov't! Heh!

Gotta love the idealogues! Haha (sp)

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Let's just keep moving along, please...

[jake619]

Perhaps a better way to look at the debate is if a friend asked how much you made, would you tell him your household income?  Unless you lived alone then probably not.

[jsickz32]

It feels better building credit and cls when using your own income. It might be slower but feels better... js.