Income Estimation on application

corganrocks

Hi,

Just applied for a halifax credit card and got accepted instantly, given credit limit etc. Apparently they'll be sending the documents for me to sign through the mail.

However- Left my last job a while back, have been making ends meet by selling stuff and doing the occasional bit of work for my dads building firm since. I've been offered a new job with a passport office but that doesn't start for a few more weeks. So, seeing as I'll be working there soon, I figured that putting down my salary there would be a more accurate reflection of my financial circumstances when using the card than my current "little or no income", so I put what my salary will be when I start there as my income. I have never before missed a payment on any credit card or loan, nor would I be unable to pay any and all balances on this new card should I sign for it.

I assumed that if they weren't happy with it they'd reject, but they accepted. But is this "attempting to gain money through false information"? If so will the company check, find out and take action, and what can the penalties be? At the time of applying I thought that the ability to pay back the money was the most important thing here (which, as I said, I'd be able to do) but now I'm beginning to worry that what could charitably be called a "half-truth" might land me in a spot of bother.

Hopefully I'll be right in thinking that the big firms will only go after people who falsely bump up their circumstances by huge amounts in order to get mortgages/sizeable loans etc., and not my scenario, when you consider the credit limit I'm receiving is £1300 (i'm young and don't earn all that much)?

As this was an online application, presumably processed by a computer for the instant decision, would one get-out simply be to not sign and return the contract and wait until I've actually started the job before applying somewhere?

Thanks in advance for help
Ryan

Milky_Mocha

I'm no expert but I would have thought that so long as you have accepted the job offer at the passport office and have your copy of the written offer / acceptance then you are employed unless there is a much deferred start date. If the bank were to suddenly (highly unlikely I think at this stage) request proof of your employment then that should suffice. Given the low credit limit I doubt they'd make a big deal in spite of your proof.

YorkshireBoy

They would only find out what you were earning if they asked you to send in 3 months bank statements - and even then you could say you were having substantial stakeholder pension deductions made at source to cover any "shortfall".

Lenders need to obtain your written authorisation to contact your employer for employment and salary details.

Having said all the above, I wouldn't make a habit of doing what you've just done, because strictly speaking it's classed as "deception to gain a pecuniary advantage".

smartsaver

Not sure if this is totally relevant BUT for the first time ever I have had to send in a pay slip and bank statement both within last 3 months to get post office card...

corganrocks

Thanks guys.

So when they do a credit check they don't actually dip into any bank accounts and see what you're earning? i.e. what regular payments are going in? I guess that leaves the system ripe for abuse in a sense, but it does help me out cus I'm not out to scam anybody :beer: And I guess one way or another they get their money back in the end if someone manages to cheat their way to loads more than they can afford.

thanks very much for your help,
Ryan

Karma67

corganrocks wrote:

So when they do a credit check they don't actually dip into any bank accounts and see what you're earning? i.e. what regular payments are going in?

When they get your info from the credit reference agencies, it will have details of your bank account, but only so much as, how much your balance was when it was updated, if you have an overdraft, and how you have been running the account....so relax....they can't go into bank accounts to see what you have been putting in/taking out.

HTH

M_Thomson

corganrocks wrote:

Hi,

Just applied for a halifax credit card and got accepted instantly, given credit limit etc. Apparently they'll be sending the documents for me to sign through the mail.

However- Left my last job a while back, have been making ends meet by selling stuff and doing the occasional bit of work for my dads building firm since. I've been offered a new job with a passport office but that doesn't start for a few more weeks. So, seeing as I'll be working there soon, I figured that putting down my salary there would be a more accurate reflection of my financial circumstances when using the card than my current "little or no income", so I put what my salary will be when I start there as my income. I have never before missed a payment on any credit card or loan, nor would I be unable to pay any and all balances on this new card should I sign for it.

I assumed that if they weren't happy with it they'd reject, but they accepted. But is this "attempting to gain money through false information"? If so will the company check, find out and take action, and what can the penalties be? At the time of applying I thought that the ability to pay back the money was the most important thing here (which, as I said, I'd be able to do) but now I'm beginning to worry that what could charitably be called a "half-truth" might land me in a spot of bother.

Hopefully I'll be right in thinking that the big firms will only go after people who falsely bump up their circumstances by huge amounts in order to get mortgages/sizeable loans etc., and not my scenario, when you consider the credit limit I'm receiving is £1300 (i'm young and don't earn all that much)?

As this was an online application, presumably processed by a computer for the instant decision, would one get-out simply be to not sign and return the contract and wait until I've actually started the job before applying somewhere?

Thanks in advance for help
Ryan

When you applied for this card, what did you put on the section which said how long have you been in your job? And did you put the passport office as your current employment?

Robert_Sterling_3

corganrocks wrote:

Hi,
However- Left my last job a while back, have been making ends meet by selling stuff and doing the occasional bit of work for my dads building firm since. I've been offered a new job with a passport office but that doesn't start for a few more weeks. Ryan

You were not in full time employment when you applied for a credit card.
You gave false information because you thought if you told the truth you might not get a card.

Yorkshireboy encourages you by suggesting that you could tell some more lies in certain circumstances.
Yorkshireboy then backs it both ways by suggesting that you do not make a habit ( twice only then ) of this crime.

It is not exactly the crime of the century in my humble opinion.

Robert_Sterling_3

Karma67 wrote:

When they get your info from the credit reference agencies, it will have details of your bank account, but only so much as, how much your balance was when it was updated, if you have an overdraft, and how you have been running the account....so relax....they can't go into bank accounts to see what you have been putting in/taking out.
HTH

I got info from Experian today.
It said "This includes all information we hold about you..."
I have had a Natwest Bank Account and A Halifax Bank Account for decades.
Niether of these is mentioned on my report so they have no record of these two accounts each of which has an agreed overdraft to go with it.

M_Thomson

YorkshireBoy wrote:

Lenders need to obtain your written authorisation to contact your employer for employment and salary details.

A lot of credit card terms and conditions have this in already. So signing them already gives permission.

Karma67

Robert_Sterling wrote:

I got info from Experian today.
It said "This includes all information we hold about you..."
I have had a Natwest Bank Account and A Halifax Bank Account for decades.
Niether of these is mentioned on my report so they have no record of these two accounts each of which has an agreed overdraft to go with it.

sorry i was only going by my experience...both Experian and Equifax have my bank account on there records...stating what my avaialble balance is and what it is at the time of updating....

I s'pose not ALL banks report to the CRA's...

i apologise if my advise was misleading