How do creditors know how much you earn

costaerer

Anyone can put anything on the card!

Why is it acceptable on your credit file to have 50% of debt to your income? So why do creditors give you so much credit !? My dad earns 25k before bonus and tax but has 2 cards with £15k limits. Not that he'd dream of using it, and always pays bak the full amount - JEALOUS!

BugsyBrowne

costaerer wrote: »

Anyone can put anything on the card!

Why is it acceptable on your credit file to have 50% of debt to your income? So why do creditors give you so much credit !? My dad earns 25k before bonus and tax but has 2 cards with £15k limits. Not that he'd dream of using it, and always pays bak the full amount - JEALOUS!

I think that is the risk credit card companies take when asking income on application forms..
So basically every application is risk based..

_Andy_

costaerer wrote: »

Anyone can put anything on the card!

Why is it acceptable on your credit file to have 50% of debt to your income? So why do creditors give you so much credit !? My dad earns 25k before bonus and tax but has 2 cards with £15k limits. Not that he'd dream of using it, and always pays bak the full amount - JEALOUS!

Out of interest, why would you be jealous?

costaerer

That they havering credit limits AND can afford to pay off in full every month and that they can get any credit they want. But that's 40 years of good credit for you !!

the_insider

If you put an incorrect amount on the application, then you are committing fraud. The banks make a risk based decision on a number of factors, including annual income.

BugsyBrowne

the_insider wrote: »

If you put an incorrect amount on the application, then you are committing fraud. The banks make a risk based decision on a number of factors, including annual income.

Well i would say 50-75% of the population are committing fraud then..

noh

star-fire wrote: »

Well i would say 50-75% of the population are committing fraud then..

How do you come to that conclusion?
Or is it one of the 90% of statistics that are made up on the spot?

costaerer

star-fire wrote: »

Well i would say 50-75% of the population are committing fraud then..

I would also think that alot of people exaggerate their wages on application forms. Maybe add a couple of zeros to the end of the amount! LOL

BugsyBrowne

noh wrote: »

How do you come to that conclusion?
Or is it one of the 90% of statistics that are made up on the spot?

I am a self/employed in the building trade,most of the last say 10 years annual income has been between 23k-34k but last year only earned just over 18k,but on recent applications this year put 25k as annual income,so would you say people would class me as committing fraud..

PNPSUKNET

mbna like to ask for wage slips, or even accounts

jay87

Well the national hunter database stores the details of information such as earnings to point out fraud, so if you earn vastly different amounts on multiple credit applications in a short space of time that can flag up as fraudulent but other than that, guess there isn't much stopping it.