Can ‘Other Houshold income’ on CC application include adult children

NineStoneCowboy

Any help would be greatly appreciated. I’m applying for a new credit card. I lived with my adult daughter (she’ll soon be 20 years old and has no plans to move out any time soon), who contributes to bills, food shopping, etc. Can I therefore use her salary in the ‘other household income’ box on the application form?

Gandalf644

NineStoneCowboy said:

Any help would be greatly appreciated. I’m applying for a new credit card. I lived with my adult daughter (she’ll soon be 20 years old and has no plans to move out any time soon), who contributes to bills, food shopping, etc. Can I therefore use her salary in the ‘other household income’ box on the application form?

I would say you can use the amount she contributes as 'other income'. Not her salary though as that is hers.

Olenna

NineStoneCowboy said:

Any help would be greatly appreciated. I’m applying for a new credit card. I lived with my adult daughter (she’ll soon be 20 years old and has no plans to move out any time soon), who contributes to bills, food shopping, etc. Can I therefore use her salary in the ‘other household income’ box on the application form?

Will she be happy to provide a payslip or something else if this value is manually reviewed?

retiredbanker1

IMO this is  clear cut - no you cannot use an adult daughter as other income. End of.

eskbanker

retiredbanker1 said:

IMO this is  clear cut - no you cannot use an adult daughter as other income. End of.

If you're claiming this to be clear cut and 'end of' discussion, can you cite any authoritative sources to support your strongly-held opinion?

I'm not necessarily disagreeing with it, just curious as to why you seem so sure (especially in the absence of information about which institution is asking the question)!

th081

In my mind this would be allowed if you as the parent had access to her income to support your credit card payments and any future problems with paying back you may have. Otherwise it's a form of deception 

adamp87

I’d say if she’s paying money to you as rent I suppose you could count it.

Whether technically you’d be allow would depend  - I’d assume income really is yours and yours alone (salary/shares,stocks..etc) but I could see the argument for it.

Why not just put it on and see. If they ask and you need to prove it then you can state it then. Likewise I’d say be wary of that income stopped and then you were unable to pay the card bill but assume you’ll know that already 

Grumpy_chap

NineStoneCowboy said:

Any help would be greatly appreciated. I’m applying for a new credit card. I lived with my adult daughter (she’ll soon be 20 years old and has no plans to move out any time soon), who contributes to bills, food shopping, etc. Can I therefore use her salary in the ‘other household income’ box on the application form?

No.  Not usually.

"Other household income" is usually the income associated with the same "household" having fully joint finances - typically a partner.  It also includes if there is income that does not fall into the standard categories, so from a trust or rental income or such like.

Usually a parent - child household would counts as two "households" for this purpose as the parent - child do not have fully intertwined joint finances and the child (who forms a different "household" for this purpose) would not cover the parent's CC if the parent defaulted.  In the same way as the child cannot apply for a CC and state the parent's income to support the child's borrowing.

These formal assessments may not reflect the reality that families are a bit more flexible and may, actually, help each other if one part was in financial difficulty.  That does not mean the CC can pursue the child for the parent's debt (or vice-versa).

You can put the amount of "rent / contribution to household expenses" that your daughter pays as "other income" as, once received, this income is yours and no longer your daughter's.

NineStoneCowboy

Grumpy_chap said:

NineStoneCowboy said:

Any help would be greatly appreciated. I’m applying for a new credit card. I lived with my adult daughter (she’ll soon be 20 years old and has no plans to move out any time soon), who contributes to bills, food shopping, etc. Can I therefore use her salary in the ‘other household income’ box on the application form?

No.  Not usually.

"Other household income" is usually the income associated with the same "household" having fully joint finances - typically a partner.  It also includes if there is income that does not fall into the standard categories, so from a trust or rental income or such like.

Usually a parent - child household would counts as two "households" for this purpose as the parent - child do not have fully intertwined joint finances and the child (who forms a different "household" for this purpose) would not cover the parent's CC if the parent defaulted.  In the same way as the child cannot apply for a CC and state the parent's income to support the child's borrowing.

These formal assessments may not reflect the reality that families are a bit more flexible and may, actually, help each other if one part was in financial difficulty.  That does not mean the CC can pursue the child for the parent's debt (or vice-versa).

You can put the amount of "rent / contribution to household expenses" that your daughter pays as "other income" as, once received, this income is yours and no longer your daughter's.

Thanks all. I just wasn’t sure who the ‘household’ bit covered, as this is the first time I’ve had to fill such a form in since she started work. Maybe these companies need to start using a different word than household. When you get asked questions about how many people live in the household you count everybody, so then when you get asked for total household income it’s natural that many would think this includes everybody’s salaries. I suspected this wasn’t the case though, so thought I’d check with better minds than my own so that I don’t do anything wrong. What you say makes sense, so I’ll just leave it off.

retiredbanker1

eskbanker said:

retiredbanker1 said:

IMO this is  clear cut - no you cannot use an adult daughter as other income. End of.

If you're claiming this to be clear cut and 'end of' discussion, can you cite any authoritative sources to support your strongly-held opinion?

I'm not necessarily disagreeing with it, just curious as to why you seem so sure (especially in the absence of information about which institution is asking the question)!

Just common sense and I would turn this back to you and ask have you ever seen this allowed on any credit card application?

eskbanker

retiredbanker1 said:

eskbanker said:

retiredbanker1 said:

IMO this is  clear cut - no you cannot use an adult daughter as other income. End of.

If you're claiming this to be clear cut and 'end of' discussion, can you cite any authoritative sources to support your strongly-held opinion?

I'm not necessarily disagreeing with it, just curious as to why you seem so sure (especially in the absence of information about which institution is asking the question)!

Just common sense and I would turn this back to you and ask have you ever seen this allowed on any credit card application?

I've never reviewed a credit card application, but it seems that your comment could really have been condensed to "IMO you cannot use an adult daughter as other income"!