What happens if yo exaggerate your income to a credit card provider?

YorkshireBoy

Nasqueron wrote: »

What happens if you have a payrise between applications? Obviously if you were being dishonest that's a different issue but I am curious about the first part if you were being honest - if you apply for say a loan with a salary of £18k and then 6 months later apply for a credit card with a salary of £20k would it be an issue?

In addition to the previous poster, inflating by £2K isn't going to get a massive increase in limit. But, in relation to your payrise example, it might look suspicious if you claimed an 11% payrise for doing the same job! I've had to be content with 1.5-2% for the last 3 years, as have most people I'd guess.

GingerBob_3

mwarby wrote: »

The fraud detection algorithms will be more complicated than does salary match. Its probably going to have results of say pass\reffer\fail.

I'm guessing in terms of pay it goes something like. Number of pay rises - is this in the 'normal' band if not check manually, pay rise amount is this in 'normal' band if not check manually. A complete guess normal for number of rises 0-4, for total rise over year 10 or 20%, i wouldn't be surprised if it also looks at others with same job title and looks to see how close you are to average for this (perhaps a banker with 50% rise isn't considered unusual, but for a cleaner it is unusual)

As others have said best not to try and game system, a fraud marker or conviction will dent your credit worthiness pretty bad

How many people have been convicted for this? Is it approximately none?

Nasqueron

YorkshireBoy wrote: »

In addition to the previous poster, inflating by £2K isn't going to get a massive increase in limit. But, in relation to your payrise example, it might look suspicious if you claimed an 11% payrise for doing the same job! I've had to be content with 1.5-2% for the last 3 years, as have most people I'd guess.

Depends on the company I guess, I went from 18,500 to 20000 last year but we hadn't had one for a couple of years - nature of private sector business, when profits are good we get the payrise to make up for a year or two of lean times - no guaranteed pay rises here unfortunately!

Westminster

I can't see a 'standard' payrise percentage working.

I had a 12% payrise 3 years ago and a 20% payrise last year.

Same job.

sean9461

It doesn't actually ask you what job your in on most applications

Just the job title and sector.

If like me your say a computer engineer you could be in that job title and sector but start out really low wage eg 14000at say a call Center getting minimum wage to provide remote support then you could transfer to another job same title same sector for 50000.

Over a 300% pay rise.

I think if cifas simply gave a fraud marker for changing your income there would be a hell of a lot of complaints a lot of people change jobs.

andyfromotley

The most likely outcome is that you would be given a higher credit limit, and thus much more likely to borrow too much and face difficulty repaying.

The plus side for the rest of us that it should really prevent you from posting on here in five years time that you were a victin of 'irrresponsible lending wah wah!!!' (although that may be wishful thinking).