Proving salary

matt1234

Hi,

I am currently researching the best deals for a new credit card and am confused as to how I will be able to prove my income. Currently I bank solely with Halifax who have given me a £1500 overdraft and a credit card (High interest rate).

I'm a student and have an online business which currently guarantees 1.5k coming into my account each month. All my money goes into my current account with Halifax so they know exactly what I earn. The problem lies with proving my income to other companies. How would I do this exactly? Do I just put a figure down, and if so, how would they check?

Many thanks in advance.

williham

they don't check, they go by what you tell them. It's only if you start putting random amounts in different applications that you'll have any problems.

matt1234

williham wrote: »

they don't check, they go by what you tell them. It's only if you start putting random amounts in different applications that you'll have any problems.

Are you sure about that? Surely just about everyone is going to lie to get a higher credit limit

Volcane

Post Office credit cards are known for requesting wage slips.

American Express are known to ring you at ork and ask you to confirm details on your wage slip (granted you could just lie again if you were inclined to).

97trophy

matt1234 wrote: »

I'm a student and have an online business which currently guarantees 1.5k coming into my account each month.

wow, my hat is off to you. Well done.

CannyJock

williham wrote: »

they don't check, they go by what you tell them. It's only if you start putting random amounts in different applications that you'll have any problems.

Tell that to Tesco and M&S where I've twice had to send proof of income

They can and will check. And if you put in details that you can't substantiate then you risk getting a CIFAS marker on your credit report.

To the OP, you're effectively self-employed. If you don't have a self-assessment tax return from the previous year then you base it on a "reasonable estimate" for the current year.

jonesMUFCforever

I take it that the £1.5k per month OP is talking about is turnover not income.
If he is keeping books then it will be easy to keep notes of amounts which represent income.

matt1234

jonesMUFCforever wrote: »

I take it that the £1.5k per month OP is talking about is turnover not income.
If he is keeping books then it will be easy to keep notes of amounts which represent income.

Yes it's turnover. I do keep books, but I can't exactly show that to banks?

bert&ernie

The issuer pretty much has to take the stated income at face value. However, most will do a simple cross check between the declared income and other application data such as your age and employment type. For instance, an 18 year old student earning £25K a year would look odd and probably trigger referral to an underwriter who may request proof of income.

If the income you declare seems reasonable, then I don't think you will have a problem. If its looks unusually high, then you may need to explain it or provide proof.

never-in-doubt

CannyJock wrote: »

And if you put in details that you can't substantiate then you risk getting a CIFAS marker on your credit report.

Mate it wouldn;t affect CIFAS instead it'd actually put an 'applicant refer' flag on the N Hunter checks which is worse as this remains for 6yrs unlike a 13mth CIFAS entry...... If you SAR N Hunter and see the text 'Refer to Applicant' then basically this is a warning to other lenders who will not give you credit as long as that entry remains which is 6yrs.

But yea, don't lie about salary! Its fine if its the first credit application you've made and then you stick to it forever - they could never dis-prove you, but it's really not worth it.

That said, on another forum a bloke done this and said (at 18) that he was a high salesman and earned £100k per annum (he actually earned £15k) so the first credit card he got had a £7k limit and then before long he was in a right old mess..... he blames the banks (yea right!) but can't see the fact his lie was what caused this in the first place!

CannyJock

never-in-doubt wrote: »

Mate it wouldn;t affect CIFAS instead it'd actually put an 'applicant refer' flag on the N Hunter checks which is worse as this remains for 6yrs unlike a 13mth CIFAS entry...... If you SAR N Hunter and see the text 'Refer to Applicant' then basically this is a warning to other lenders who will not give you credit as long as that entry remains which is 6yrs.

Interesting distinction. I'd always been lead to believe that knowingly putting incorrect information on an application for credit would result in a CIFAS marker on your account (obtaining pecuniary advantage by deception).

Hadn't realised a NHunter black mark lasted so long, cheers for that. Pity it's a £10 fee and no equivalent CRA £2 statutory fee. Link to website for anyone curious to know what their file holds: http://www.nhunter.co.uk/data.html