What constitues income?

monstermunch30

Credit applications will obviously ask for annual income, but what does this consist of. As well as salary can it include tax credits, child benefit, child maintenance etc? I'm looking to apply for either a Barlclaycard Platinum or a loan to consolidate some debt. I don't know whether this rule will depend on which lender you are applying to. Any help would be much appreciated.


Many thanks

19lottie82

monstermunch30 wrote: »

Credit applications will obviously ask for annual income, but what does this consist of. As well as salary can it include tax credits, child benefit, child maintenance etc? I'm looking to apply for either a Barlclaycard Platinum or a loan to consolidate some debt. I don't know whether this rule will depend on which lender you are applying to. Any help would be much appreciated.


Many thanks

Yes it can, definitely benefits, I'm not 100% sure about maintenance.

Just bear in mind tho that you can't pay debt directly with debt, so this rules out a credit card for consolidation most of the time.

And if you want to take out a loan then lenders generally won't lend more than 50% of your income minus your existing debt. So if your existing debt was £7k and you wanted to borrow the same to clear it, you'd generally need an income of £28k +

jonesMUFCforever

I don't think benefits count as income!
They can be withdrawn just as quick as paid.
Income is money received from a job and or interest and dividends.

Sabbathdei

::think: Does cashback from a current account such as Santander 123 count ?

Pardon me for hijacking the thread

jonesMUFCforever

Sabbathdei wrote: »

::think: Does cashback from a current account such as Santander 123 count ?

Pardon me for hijacking the thread

Will it still be there in 6 months time - who knows so for any uncertain I would say no.

Sabbathdei

True, I suppose cashback does depend on several variables, it's not regular income that's set in stone.

Nice_Weather_For_Ducks

Income that lenders will consider reliable and (hopefully long term) will include:

Salary, Pension, Interest earned on savings, Dividends, Rental income.

Im sure there a few more to add but I think they are the main ones.

meer53

Some lenders won't include dividends as income from self employed people. They cloud profit figures so a clear picture of income isn't available.

Nice_Weather_For_Ducks

meer53 wrote: »

Some lenders won't include dividends as income from self employed people. They cloud profit figures so a clear picture of income isn't available.

My bad, I meant dividends from shares, unit trust funds etc