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Proving salary

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.
«13

Comments

  • williham
    williham Posts: 1,223 Forumite
    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
    matt1234 Posts: 149 Forumite
    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 :confused:
  • 97trophy
    97trophy Posts: 915 Forumite
    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.
  • Volcane
    Volcane Posts: 325 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    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).
    Best Regards,

    V
  • CannyJock
    CannyJock Posts: 3,838 Forumite
    1,000 Posts Combo Breaker
    edited 23 July 2009 at 7:39PM
    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.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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
    matt1234 Posts: 149 Forumite
    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
    bert&ernie Posts: 1,283 Forumite
    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.
    The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    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!
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • CannyJock
    CannyJock Posts: 3,838 Forumite
    1,000 Posts Combo Breaker
    edited 24 July 2009 at 12:16AM
    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
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
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