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I would assume that higher income means greater opportunity for credit, higher limits, etc. Other factors matter too, of course.

 

My reason for asking is my GF has had a pretty meteoric rise in income the last 5 years, going from around $40K to just shy of $100K.

 

My question is, how do creditors KNOW that other than you entering the information on applications? How would current creditors know so they might consider CLIs?

 

Is this sort of like a tree falling in the forest, if no one knows or hears, does it really make a difference?

 

Thanks!

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I would assume that higher income means greater opportunity for credit, higher limits, etc. Other factors matter too, of course.

 

My reason for asking is my GF has had a pretty meteoric rise in income the last 5 years, going from around $40K to just shy of $100K.

 

My question is, how do creditors KNOW that other than you entering the information on applications? How would current creditors know so they might consider CLIs?

 

Is this sort of like a tree falling in the forest, if no one knows or hears, does it really make a difference?

 

Thanks!

 

Existing creditors will find out when she calls and asks for a CLI. I have always been asked for my income in those instances. If she apps for another product besides the existing CC with the same financial institution sometimes they share info across business units.

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I would assume that higher income means greater opportunity for credit, higher limits, etc. Other factors matter too, of course.

 

My reason for asking is my GF has had a pretty meteoric rise in income the last 5 years, going from around $40K to just shy of $100K.

 

My question is, how do creditors KNOW that other than you entering the information on applications? How would current creditors know so they might consider CLIs?

 

Is this sort of like a tree falling in the forest, if no one knows or hears, does it really make a difference?

 

Thanks!

 

Existing creditors will find out when she calls and asks for a CLI. I have always been asked for my income in those instances. If she apps for another product besides the existing CC with the same financial institution sometimes they share info across business units.

+1 Agreed, however I would always state what your actual income in, so in the event they ask for tax returns or paystubs everything matches.

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Some creditors request paystubs or W-2 Forms as proof, while some don't. Wells Fargo bankers used to tell us to put down school scholarships and grants we got as income. It's a gray area.

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Some creditors do ask for proof, so be honest on your app in case they do. They also may have access to databases similar to The Work Number. If you have an extensive, and positive, credit history they may be comfortable with just that, but don't always count on that. For something big, like a mortgage, they nearly always ask.

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I think it's a good policy to just tell the truth across the board... You never have to wonder if the documentation will back you up. :)

Edited by cv91915

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I think it's a good policy to just tell the truth across the board... You never have to wonder if the documentation will back you up. :)

With a credit union that is very popular here, they did ask for my last two pay statements and some additional information from me proving my length of employment and position. All this for a credit card. I had the feeling that they were suspicious that I wasn't telling the truth. In fact, on my app I wrote slightly less than I really earn. They did finally approve me after they determined I was everything I claimed. If you tell the truth, you have nothing to worry about.

Edited by Burgerwars

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I think it's a good policy to just tell the truth across the board... You never have to wonder if the documentation will back you up. :)

With a credit union that is very popular here, they did ask for my last two pay statements and some additional information from me proving my length of employment and position. All this for a credit card. I had the feeling that they were suspicious that I wasn't telling the truth. In fact, on my app I wrote slightly less than I really earn. They did finally approve me after they determined I was everything I claimed. If you tell the truth, you have nothing to worry about.

Agreed. I generally use the current year's base salary, and exclude bonuses and investment income. If it comes down to proving it I would rather only produce a current paystub, and not have to dig up investment account statements or old paystubs, or tax returns.

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Just to be clear, I did not ask the original question because I or my GF would ever consider misrepresenting information on a credit application. I asked because I wanted to make sure proper benefit, if any, was gained from the raise in income. Always tell the truth...makes it pretty easy to remember what you said.

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I understood your original post the way you intended. There was some divergence on the topic in general somewhere down-thread. :grin:

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