Will a Credit Card Company check My Income?

Fishandlemons

Hi guys,

i recently made an application for a credit card app. When asked about my employment on the online form I entered my job type as: self-employed, and my salary as: £32000 per annum.

This is actually what I expect to earn as I've just become self-employed, but I was previously unemployed. I don't think i am being dishonest as this is what i genuinely expect to earn.

I've read that credit card companies don't typically verify your income however, I am overdrawn slightly on my current account will this flag up? I have a great credit history.

i haven't signed the agreement yet. Please let me know what you think.

Thanks!

[Deleted User]

They may ask for proof.

But otherwise no

molerat

National Hunter hold information on what you have put on previous applications so if they check that database and you have consistently put £20K then suddenly put £30K they may ask for proof.

TheMoniac

I doubt they will ask for any additional information unless you are intending to apply for more credit than their initial standard amount. If you're a new card holder with them the initial credit limit will probably be a standard amount they offer for your credit profile and which makes most new applications a reasonable risk for them without too much additional administration.

Candyapple

molerat wrote: »

National Hunter hold information on what you have put on previous applications so if they check that database and you have consistently put £20K then suddenly put £30K they may ask for proof.

http://www.telegraph.co.uk/personal-banking/current-accounts/how-your-bank-spies-on-your-exact-monthly-income---and-shares-it/

Fishandlemons

''CallCredit's data would show all income, whether this was wages or pensions or regular payments between spouses.

It would also include income from rental properties or other investments.

And it would be accurate to the penny.''

I thought they could only gather a ''picture'' of your income. In any case, you could be paid in cash, Paypal, etc.

Fishandlemons

!!! wrote: »

They may ask for proof.

But otherwise no

molerat wrote: »

National Hunter hold information on what you have put on previous applications so if they check that database and you have consistently put £20K then suddenly put £30K they may ask for proof.

If they ask for proof and I can't provide satisfactory evidence will I be prosecuted for fraud, or will they just reject my application? I haven't signed the agreement yet.

Thanks!

molerat

Unlikely to be prosecuted but you could end up with a CIFAS marker which would pretty much stop you from getting any credit.

tenchy

Fishandlemons wrote: »

''CallCredit's data would show all income, whether this was wages or pensions or regular payments between spouses.

It would also include income from rental properties or other investments.

And it would be accurate to the penny.''

I thought they could only gather a ''picture'' of your income. In any case, you could be paid in cash, Paypal, etc.

Yes, I would say gathering a "picture" is closer to the mark. Here's just one example as to how this CATO analysis could be wildly inaccurate: a colleague of mine on approx. £90k pa currently pays 70% of his salary to his pension as an AVC. There would be a severe mismatch between his stated salary and what appears from "external sources" into his current account(s). I don't know if he's ever had any problems obtaining credit cards etc. but I've never heard of anything from him in that respect.


How many applicants maliciously misquote income information? I would say it's a very small proportion of applicants. If the lenders are so concerned about this sort of thing why don't they just take the easy option - ask for proof! Why invest in questionable systems and "algorithms" to identify potential miscreants? it just doesn't makes sense to use CATO for this type of thing. If they do use it as such you can bet your bottom dollar that the number of false positives and false negatives will be very high.

tenchy

Fishandlemons wrote: »

If they ask for proof and I can't provide satisfactory evidence will I be prosecuted for fraud, or will they just reject my application? I haven't signed the agreement yet.

Thanks!

No, and Yes. That would be the end of the matter.