Salary on CC application

[Thingywingy]

What is the purpose of asking for annual income on CC aplications? Do they verify it? Don't they rely on credit report? Has anyone ever had problems for inflating it?

[Avid Reader]

Has anyone ever had problems for inflating it?

AMEX FR?

[Name Changed]

AMEX FR?

+1

Try keeping close to ur real income.... Also If you dont have a tax return there is a chance they'll request it, and then close ur account

[AsherO]

Don't they rely on credit report?

It's a factor in your credit worthiness that doesn't appear on your credit report.

Try keeping close to ur real income.... Also If you dont have a tax return there is a chance they'll request it, and then close ur account

Inflating it isn't a problem is this regard, many here (myself included) have reported 'household' income on their applications and when F/R'd the couldn't prove it (they could only prove a much lower number), and they had their credit lines slashed, but Amex didn't totally shut them down. If you can't prove *any* income you'll have a harder time survivng F/R, regardless of what you wrote on your apps.

[Name Changed]

I had a Business card open a few years ago ... I didnt have a Tax return ... They FR me and shut me down
At least it was after I got my sign up bonus 

[Thingywingy]

Has anyone ever had a problem with a non Amex card?

[AsherO]

Has anyone ever had a problem with a non Amex card?

Citi has been reported to occasionally ask people to verify their income.

[Side incomer]

Citi has been reported to occasionally ask people to verify their income.

Happened to me and my wife. once they got the income they left all the credit limits, although it didn't match at all the reported income.

[AJK]

Inflating it isn't a problem is this regard, many here (myself included) have reported 'household' income on their applications and when F/R'd the couldn't prove it (they could only prove a much lower number), and they had their credit lines slashed, but Amex didn't totally shut them down. If you can't prove *any* income you'll have a harder time survivng F/R, regardless of what you wrote on your apps.

Perhaps not (in the sense that the lines may not get shut down), but it certainly will have a negative effect on your credit score if lines get slashed. At the very least, inflating your income is a risk.

[AsherO]

Perhaps not (in the sense that the lines may not get shut down), but it certainly will have a negative effect on your credit score if lines get slashed. At the very least, inflating your income is a risk.

1. If Amex slashes your CL, it only affects your utilization. If you're not spending (much) on your Amex cards the effect is negligible.
2. While inflating your income is a slight risk, it'll help you get approved and get a decent CL, which is definite. It might affect you adversely, which is a maybe (only if you get F/R'd).

[AJK]

1. If Amex slashes your CL, it only affects your utilization. If you're not spending (much) on your Amex cards the effect is negligible.

Utilization is 30% of your FICO score. Whether or not you spending (much) on your AMEX cards in particular is only part of the equation. To illustrate, if across an entire revolving credit portfolio, one has $100,000 in credit lines, $50,000 of which is AMEX lines with zero utilization, with the other $50,000 being, say, Visa lines with 100% utilization, one's overall util % would be 50%.

If after an FR the lines are (for the purposes of the example) reduced to $1.00, the util % will go up to 99% thus causing a dramatic dip in the FICO score.

2. While inflating your income is a slight risk, it'll help you get approved and get a decent CL, which is definite. It might affect you adversely, which is a maybe (only if you get F/R'd).

It also happens to be illegal (if you're lying)

[AsherO]

Ok, so if utilization is so critical to your score, report a higher income and get a higher CL so you have better utilization and thus a higher score.

If Amex F/R's you, you send them your tax return and they'll 'slash' your CL to where they'd approve it had you applied with the income on your tax return (not $1) and you'll be just as well off as you would've been reporting the lower income amount.

At the end of the day, the likelihood of F/R is marginal, and income reporting isn't a trigger (though it is a corollary to CL, which is).

[AJK]

Ok, so if utilization is so critical to your score, report a higher income and get a higher CL so you have better utilization and thus a higher score.

If Amex F/R's you, you send them your tax return and they'll 'slash' your CL to where they'd approve it had you applied with the income on your tax return (not $1) and you'll be just as well off as you would've been reporting the lower income amount.

At the end of the day, the likelihood of F/R is marginal, and income reporting isn't a trigger (though it is a corollary to CL, which is).

Aside from the ethical and legal issues involved, and the marginal risk of undergoing the F/R which is anything but marginally annoying, I'm compelled to agree.

[AsherO]

Aside from the ethical and legal issues involved.

Like I already said, you can report your own income, or your household income (which wouldn't necessarily appear on your tax return), for many people that justifies this discussion from an ethical/legal perspective.

[AJK]

Like I already said, you can report your own income, or your household income (which wouldn't necessarily appear on your tax return), for many people that justifies this discussion from an ethical/legal perspective.

And like I already said, there would be no problem as long as the person in question is not lying.

[MarkS]

Keep in mind, that if your parents 'support' you (and could potentially bail you out if you had a cc bill you couldn't pay) you can add their income to yours and put that down as 'household' income.

[YudiG]

Keep in mind, that if your parents 'support' you (and could potentially bail you out if you had a cc bill you couldn't pay) you can add their income to yours and put that down as 'household' income.

amex told me that any person living at address's income can be counted toward household though if an FR was triggered i doubt it would fly so not sure what advantage there is...what's the deal w/ chase and income - are they like citi and Amex?

[AJK]

amex told me that any person living at address's income can be counted toward household though if an FR was triggered i doubt it would fly so not sure what advantage there is...what's the deal w/ chase and income - are they like citi and Amex?

The advantage is as AsherO mentioned.

[AsherO]

what's the deal w/ chase and income - are they like citi and Amex?

Never heard of problems with Chase and income verification, though I've heard them ask many questions regarding sole-proprietorships for business apps.

[BAHayman]

Never heard of problems with Chase and income verification, though I've heard them ask many questions regarding sole-proprietorships for business apps.

They had me fax in my 1040 to verify my income in order to approve my app...