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Application: Self employed, what do they ask for re your income?
UKTelecom
Posts: 42 Forumite
in Credit cards
I am hoping to get one of these fantastic 30+ month 0% credit cards. I am about to move into a new home and I feel one of these would ease the pain somewhat buying washing machines fridge freezers etc. Don't worry I will hold off applying for a new credit card before completing the purchase I should first say!
I am self employed (a sole trader) - do they ask for just what you earned in the last year? (As in what was on my last submitted SA302 form).
Or is it like a mortgage application where they average the last 2/3 years? It would be better for me if they did just take the past year - for the years before, earnings were more modest.
Or do they not really bother with the above - and just ask what your income is? As in you do not even specify that you are self employed etc.
Apologies for the basic questions! My credit score otherwise is great - I have just one other credit card that I have had for about 5 years and always pay it off each month. I cannot remember what they asked on the application!
I am self employed (a sole trader) - do they ask for just what you earned in the last year? (As in what was on my last submitted SA302 form).
Or is it like a mortgage application where they average the last 2/3 years? It would be better for me if they did just take the past year - for the years before, earnings were more modest.
Or do they not really bother with the above - and just ask what your income is? As in you do not even specify that you are self employed etc.
Apologies for the basic questions! My credit score otherwise is great - I have just one other credit card that I have had for about 5 years and always pay it off each month. I cannot remember what they asked on the application!
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Comments
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Maybe starting a dummy online application with a couple of lenders (from different stables) would jog your memory?Apologies for the basic questions! My credit score otherwise is great - I have just one other credit card that I have had for about 5 years and always pay it off each month. I cannot remember what they asked on the application!
But, and this bit is very important, you will need to enter your income EXACTLY as you did for the (very recent) mortgage application...as it will be compared with what the mortgage provider reported to the Fraud Prevention Agencies. In other words, a claimed income of £30K now and £20K a month ago - for the same job - will ring some alarm bells. Worst case scenario would be a CIFAS marker!0 -
YorkshireBoy wrote: »Maybe starting a dummy online application with a couple of lenders (from different stables) would jog your memory?
But, and this bit is very important, you will need to enter your income EXACTLY as you did for the (very recent) mortgage application...as it will be compared with what the mortgage provider reported to the Fraud Prevention Agencies. In other words, a claimed income of £30K now and £20K a month ago - for the same job - will ring some alarm bells. Worst case scenario would be a CIFAS marker!
Cheers for that - yes can confirm I was not intending to commit fraud.
Thats why I am asking the question really to avoid overstating my income by using the last year's income versus averaging the last 3.
I think you are right though I can just do a couple of dummy applications fair point.0 -
The short answer is don’t lie about your income;
I work for a Bank so here’s the answer you might be looking ; what does your SA302 you have as your drawn income ; you can also include other income such as dividends .
the FCA and PRA want lenders to steps to verify the declared income, and they will use a combination of data set; credit reference data; and previous declared income on other application for Credit plus your bank account credit turnover; to ensure you aren’t making it up
If the lender asked for partner/spousal income ; disclosed this ; it’s to offset affordability... household bills etc
They may also ask for proof of your income.0
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