Putting 99K vs. 100K+ Income on Credit App

[Wavester64]

I have a friend who makes over 100K per year income.

Yet they told me once they always put 99K on any credit app.

I asked why, they said they feel they have better success doing that & there

is less hassle putting 99K as anything over 100K would usually require POI,

more paperwork, verification, etc.

Is this true? I would tend to think the more you actually earn and put
down could translate to better success of getting that particular approval.

The only thing that makes me think they could be right is that there is a MOD/Community Leader
here I know has mentioned in posts they put less than what they actually make for some
reason, but I don't recall which MOD and their reasons.

[tcbofade]

That has not been my experience.

Combined household income is 118k, and that is generally what we use for credit card applications.

When the goal is a loan, some lenders want HHI, but most want individual income.

Be prepared to provide POI whichever road you take.

[sccredit]

I have always used my provable income (over $100k) and never worried about what would get me better success. Even with a BK I can't tell you the last time I was asked for POI.

[MileHigh96]

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@sccredit wrote:

I have always used my provable income (over $100k) and never worried about what would get me better success. Even with a BK I can't tell you the last time I was asked for POI.

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Exactly this, the only time I have ever been asked for actual POI is when applying for a mortgage.

[coldfusion]

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@MileHigh96 wrote:

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@sccredit wrote:

I have always used my provable income (over $100k) and never worried about what would get me better success. Even with a BK I can't tell you the last time I was asked for POI.

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Exactly this, the only time I have ever been asked for actual POI is when applying for a mortgage.

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It's a common request when applying for credit through a credit union, usually by wanting copies of your last 2 paystubs but if self-employed it can get a bit complicated.  

It isn't anywhere as common but some banks will also occasionally ask a new applicant for POI but are more apt to do so via an IRS 4506-C request.   Discover Bank is an example of an issuer that gets mentioned here on MF with some regularity as having done it. 

[JL276]

I think @M_Smart007  has said in the past he's put under 100k as more usually requires paperwork. 

paging @M_Smart007 

[Creditplz]

I always put my true income 280k, DW since becoming a MD is now sitting at 170k....

I always put the combined income!!! I've been 4506T by Amex, Chase (even though I am private client before the 250k to 150k minimum change) Discover, Synchrony, and tax refunds requested by First Tech Fed, MBFS, BMWFS, AudiFS, Alaska USA FCU, Harvard Employees CU (not a employee) and maybe 20 different lenders!! 

I think in this credit market just to mitigate risks it makes sense for lenders to request POI... I feel they'd give higher limits if they all verified POI.. 

Discover requested 4506T just to give me a 10k limit to start.... 

[Kidcat]

I also think it depends on whether you are an employee or self employed.  But I always put my average income ($200k) and I've never been asked on a CC app. 

[Shooting-For-800]

I would think $99k would hurt you if your income is significantly more than $99k due to mortgage, car loans, etc being a large part of your income.  A Porsche and boat loan on $199k per year is quite a bit different than on $99k per year.

[GatorGuy]

DW and me make high six figures. I report the income which is shown on our tax returns. The only time we've been asked for POI is by the lenders who ask everyone, ie AOD or asking for high CLI's from Amex. 

So I doubt there is any benefit to reporting lower income.