Is an allowance and 'income'?

MJ53

Hi,

I have recently graduated from university, and am currently unemployed whilst looking for my first full time job.

My credit score at Experian is 'excellent' and I am registered on the electoral roll. However I have never previously held a credit card. Experian suggests that I apply for credit building cards nonetheless.

I have been fortunate enough to receive a generous allowance from my parents, which I have been receiving for the past 6 years, and which will continue to come my way until my income will equal the amount the I am given (approximately £2,000 per month).

My question is: can I classify the allowance that I receive from my parents as 'income' on a credit card application?

I would appreciate any feedback from people in the know since I don't want to wrongly declare it as income, nor do I want to not declare it and risk having an application rejected.

Thanks in advance,

MJ

jason1231972

'Income' generally means stable income from wages, salary, pensions, or even investments, etc. Your allowance is provided very much on a discretionary basis, right? Therefore, it wouldn't generally count as an income for these purposes.

If you're worried, make telephone applications so that you can explain the situation to a human being. You may get a big fat NO, but it'd put your mind at ease.

PS: If your parents fancy adopting a near middle-aged man, give me a shout

MJ53

To clarify the allowance, it isn't overly discretionary since it is on a standing order to be sent to me every month. The only reason that the amount changes is due to exchange rate since it is coming from overseas.

I think you are right...the best thing would be to try to call them up and speak to a human. I will post back the findings from my own experience.

jason1231972

MJ53 wrote: »

To clarify the allowance, it isn't overly discretionary since it is on a standing order to be sent to me every month. The only reason that the amount changes is due to exchange rate since it is coming from overseas.

I think you are right...the best thing would be to try to call them up and speak to a human. I will post back the findings from my own experience.

Yeah, I figured that a £2000pcm allowance would be a more formal than if your parents were tossing you £20 every once in a while, but it's still not generally an income for such purposes. That's not to say 100% that you will be declined (I would suggest you try your own bank first, if you've been receiving this SO for a while), but that unless you have a bona fide legal agreement to suggest otherwise, this allowance is paid on the basis of your parents' generosity only, not because you've worked for it, paid into a plan for it, etc.

In effect (and without knowing any further details), this income depends on your parents remaining alive (sorry!), well, wealthy, and good hearted

Hope that makes sense. Good luck!

redpete

My advice would be to start standing on your own feet and get whatever work you can whilst looking for a full-time position. This will help build your own financial record and (apologies if I am making too many presumptions) help wean you off of your parents' support, I would imagine that a cushion of £2000 a month makes life rather comfortable when a greater sense of urgency might be more helpful..

Even if you don't get the allowance accepted as part of your income, if you get a low-credit limit card based on income from part-time work and show you can manage this well there is a good chance you could start increasing the credit limit fairly soon.

CLAPTON

no, money from mum and dad doesn't count as earnings

anyway why do you need a CC?

MrChandlerBing

a £2000 per month allowance is the equivalent to a wage of almost 31k. That is insane.

Rupert_Bear

MrChandlerBing wrote: »

a £2000 per month allowance is the equivalent to a wage of almost 31k. That is insane.

Good to see they are teaching the OP the value of money!

TheGenerus1

Rupert_Bear wrote: »

Good to see they are teaching the OP the value of money!

ahh the privileged.

sharpy2010

Its probably not even true anyway.

callum9999

sharpy2010 wrote: »

Its probably not even true anyway.

Why wouldn't it be...

Rupert_Bear wrote: »

Good to see they are teaching the OP the value of money!

Some people don't need to be taught the value of money... Just because you are wealthy, doesn't mean you don't understand how to use money sensibly or understand how it's obtained and worth.