Do credit checks check your income?

IamwhoIam_3

I do have an income both state pension and private pension but my thinking is that the more income I can show the easier it will be to get the 0% card. Last year one provider only gave me £2000 but I need £4000 now to transfer the debt. Because I will be working it will allow me to pay it off early.

boo_star

IamwhoIam wrote: »

I do have an income both state pension and private pension but my thinking is that the more income I can show the easier it will be to get the 0% card. Last year one provider only gave me £2000 but I need £4000 now to transfer the debt. Because I will be working it will allow me to pay it off early.

If you're not earning it now then I wouldn't put it as your current salary as it isn't your current salary.

It is ultimately fraud. Whether you want to take the risk of fraud markers on your CIFAS report and possible criminal proceedings is up to you.

pvt

GingerBob wrote: »

One thing though - current account turnover, another secretive data set - something might get picked up if they analyse it.

The only figures that your bank can report to a CRA are any lending they give you - so unless you are using your overdraft facility, the data will be £0 every month. Otherwise, the bank would technically be reporting your 'savings' to the CRA.:eek:

The idea that anyone could reliably derive someone's income based on their current account activity is rather fanciful. What about people who are paid in cash, or business expenses reimbursement that are paid into the same account as your salary, or paid a bonus every quarter, or have the salary for their second job paid into their spouse's bank account, or paid into an account that doesn't report to the same CRA?

YorkshireBoy

pvt wrote: »

The only figures that your bank can report to a CRA are any lending they give you...

Experian wrote:

...current account providers are now sharing credit turnover information with the credit reference agencies (CRA)

http://www.experian.co.uk/assets/corporate/white-papers/affordability-challenge.pdf (page 12)

pvt wrote: »

The idea that anyone could reliably derive someone's income based on their current account activity is rather fanciful. What about people who are paid in cash, or business expenses reimbursement that are paid into the same account as your salary, or paid a bonus every quarter, or have the salary for their second job paid into their spouse's bank account, or paid into an account that doesn't report to the same CRA?

I agree, and wonder how on earth they can see through some of the background 'noise' on my current accounts, because it would appear I'm understating my income on credit applications, not overstating it!

GingerBob_3

YorkshireBoy wrote: »

I agree, and wonder how on earth they can see through some of the background 'noise' on my current accounts, because it would appear I'm understating my income on credit applications, not overstating it!

Me too. My current account turnover does not reflect in any way my income, much of which goes nowhere near my current account (very large contributions to pension and employee share schemes). Using CAT in credit decisions is potentially fraught with difficulties. It's interesting to read the creepy document from Experian. They can't access your income data directly, so they're basically trying to circumvent "rules" that are in place to prevent them from doing so. Their ultimate objective is to have a total picture of your finances, and slowly, by stealth, they are getting there.

Thrugelmir

YorkshireBoy wrote: »

I agree, and wonder how on earth they can see through some of the background 'noise' on my current accounts, because it would appear I'm understating my income on credit applications, not overstating it!

What the noise will identify is people who churn money through a number of different bank accounts.

GingerBob_3

Thrugelmir wrote: »

What the noise will identify is people who churn money through a number of different bank accounts.

That's one possibility, but there's nothing wrong with doing that.

YorkshireBoy

Thrugelmir wrote: »

What the noise will identify is people who churn money through a number of different bank accounts.

But how will that help them identify any affordability issues?

And what's my income? Because all the banks will report different figures to the one I submit on the credit application form. For example...

Santander will report £6K
Nationwide £12K
TSB £6K (unless they lump them all together)
Lloyds £18K
BoS £12K (£36K if they lump them all together)
Tesco £9K (£18K if they lump them all together)

And Halifax, which does receive my income, will probably report well in excess of £150K...because it acts as the hub for a lot of my current account funding.

My actual salary is somewhere between £6K and £150K...but how much is it? Answer: It's what I said it was on the application form, and the one before that, and the one before the one before that.

happy_bunny_2

Salary may be checked by this I think, as chanz4 posted:
http://en.m.wikipedia.org/wiki/National_Hunter