how do they verify income?

How do cc companies verify income? On the application form, it sometimes says annual salary, but in others it asks total gross income including investments, pensions, etc. So, I include rental income Of course, when you fill this up different lenders have different answers.

Can they check with each other? can you get in trouble for this?

Comments

  • Galstonian
    Galstonian Posts: 1,292 Forumite
    I guess they could check with each other but it would probably go against data protection legislation. If you apply to lenders within the same group of companies this may not be the case and sometimes the relationships are not entirely obvious (Virgin/MBNA, HSBC/Marbles, Lloyds/Goldfish, RBS/Mint etc..)

    Can you get in trouble? Well I suppose they could reject your application but if it were rejected you would ask why. You would be able to prove your answer was correct by supplying P60s or other documentation during and appeal on that basis.
  • Rafter
    Rafter Posts: 3,850
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    Each lender uses a different scorecard and asks for different information.

    Some poeple have 'non-standard' income, ie they rely on investments rather than salary so asking for salary might not lead to an acceptance.

    Lying on an application form is trying to obtain funds by deception - ie theft. Not recommended if you want to avoid a criminal record.

    Sometimes card companies will check income by asking for payslips. Often they will rely on your credit record and loans with other organisations as proof.

    R.
    Smile :), it makes people wonder what you have been up to.
  • Thanks rafter and galstonian. Yeah, if ever, I have the payslips to prove it. But like what I said, sometimes they ask total income, so I put the rental incomes I get from my properties. If they need to see that, I can show those too.

    Thanks
  • Galstonian
    Galstonian Posts: 1,292 Forumite
    Rafter wrote:
    Often they will rely on your credit record and loans with other organisations as proof.

    But your income doesn't appear on your credit records and the lenders can't legally share or reveal such information. I believe the only means to keep tabs on that kind of thing is through a history of applications with the same lender and even then, income can easily vary over time.
  • pin
    pin Posts: 4,265
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    Some applications do ask for employer's name and address. I guess it is possible they could call up and ask the employer you actually work there.

    I'm presuming the cc company can't ask the employer what your salary is, but maybe they are able to say, "this is what mr x said his salary is, can you confirm?" or something along those lines?
    "An eye for an eye leaves the whole world blind" - Mahatma Gandhi
  • Rafter
    Rafter Posts: 3,850
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    Gal,

    I know the credit record doesn't disclose income detail.

    However, if someone is prepared to give you a mortgage, loan or other cards, and you have a good payment record, that in itself is evidence that you have a solid income and therefore the card company can 'take a risk' by not asking for payslips or contacting your employer.

    R.
    Smile :), it makes people wonder what you have been up to.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541
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    pin wrote:
    Some applications do ask for employer's name and address. I guess it is possible they could call up and ask the employer you actually work there.

    I'm presuming the cc company can't ask the employer what your salary is, but maybe they are able to say, "this is what mr x said his salary is, can you confirm?" or something along those lines?
    Just checked with my HR department on this...

    1. All requests for salary verification must be made in writing, and must include a slip, signed by the employee, authorising the release of such information.

    2. Written requests without an accompanying signature will be referred to the employee for authorisation to release information.

    3. Verbal requests for information will always be declined.

    If a card provider needs to verify salary, all they have to do is ask for 3 months bank statements, which is the standard policy for appeals anyway.
  • pin
    pin Posts: 4,265
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    Of course, bank statements, good way of verifying salary!!

    Thanks for the info, I wasn't sure, but I knew someone else here would know!
    "An eye for an eye leaves the whole world blind" - Mahatma Gandhi
  • I'm operating from memory but I know for sure that information like Marital Status, Employment Status, Home and Work Phone numbers are shared between lenders and not through the data that the public can see on their credit record. Income may be one of these variables, I just can't remember - there are two screens full of comparison data. This means that inconsistencies between applications can be assessed (for example changing your mind from being Self Empolyed to Unemployed).

    Every application for credit or a credit account is stored by the CRAs and where possible, all the data is available to all lenders. This is required by the lenders as a fraud check, for example are fifty people with different names applying from the same address and using the same home phone number.

    It's certainly one of Experian's products (called Detect) that makes this information available thorough their Autoscore front-end. Any 'suspicious' history will be typically be manually underwritten - although of course definitions of suspicious do vary.

    It might be possible for a lender to request Detect data first and make a decision without reference to an individual's own credit history but I can't remember.
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