Residential status

stevemul

When applying for a credit card, one of the questions is " what is your Residential Status?"
In my case, I am retired and living in a " granny flat" of relatives but I own 3 houses and a property abroad. The U.K. Houses are tenanted and form part of my income.
Am I a " home owner" or " living with relatives" for the purpose of the application?

Candyapple

You would be 'living with relatives' because the "granny flat" is the address you will be applying with.

stevemul

Thank you and I see your point.
However, in that case, why has the question been composed in that way rather than " do you own this house?" after asking my address?
Also, how does the answer you suggest differentiate me from someone with no assets who is ( for example) just dossing on a relative's sofa?

JimmyTheWig

stevemul wrote: »

how does the answer you suggest differentiate me from someone with no assets who is ( for example) just dossing on a relative's sofa?

It doesn't.
No more so than if rather than investing in property you had a suitcase full of gold bars, or a whacking great stocks and shares portfolio.

Candyapple

stevemul wrote: »

Thank you and I see your point.
However, in that case, why has the question been composed in that way rather than "do you own this house?" after asking my address?

Probably because some people may live in a house-share. Also, depending on what answer you give, it may affect your "score" with the lender when they calculate whether to give you credit or not. E.g. putting down 'living with relatives/parents' usually indicates a secure tenancy because your family aren't likely to kick you out, whereas if you put down furnished tenant or words to that effect, your address/tenancy isn't as secure.

stevemul wrote: »

Also, how does the answer you suggest differentiate me from someone with no assets who is (for example) just dossing on a relative's sofa?

For starter's, a friend or someone who is sleeping on a relative's sofa wouldn't be applying for credit products using their relative's address.

Even if they did, they would likely be declined because;
a) not registered on the electoral roll at that address
b) haven't lived at the address for long enough

Also, in your instance where you own several properties, any lender would look at your credit history and be able to see your mortgages (assuming you aren't mortgage free) and/or your other credit commitments.