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Yuda1718

Cc compenys income Verification

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I always wondered unless i give the credit card issuer  my proof of income  wen they asks for it like my pay stubs or text return to  Do they have a different  Method to Verify my income?

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https://www.theworknumber.com/

http://www.experian.com/consumer-information/income-insight.html

https://www.transunion.com/product/creditvision

Application agreement

This application is for a credit card with Wells Fargo Bank, N.A. You certify that all information provided is true, correct, and complete and that you have the legal capacity to enter into this contract. The Bank is authorized to verify or check any of the information given, to obtain credit reports on you and to make Overdraft Protection advances if you requested that feature. You authorize the Bank to obtain information from others to investigate your credit, employment and income history and state records including state employment security agency records and to report information regarding your account to consumer reporting agencies.

 

et cetera

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10 hours ago, hegemony said:

modeling is used by some; others use third party vendors for data on your income.

 

There are some employers who do not participate in any way with services such as The Work Number.  They will also make it virtually impossible for you to verify employment via telephone.  

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1 hour ago, PotO said:

 

There are some employers who do not participate in any way with services such as The Work Number.  They will also make it virtually impossible for you to verify employment via telephone.  

I have the sense that, by far, the majority of employers do not participate with such services.  As far as phone verification, it's my experience that most will confirm employment, including start date, but will not release any information related to compensation.

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44 minutes ago, hdporter said:

I have the sense that, by far, the majority of employers do not participate with such services.  As far as phone verification, it's my experience that most will confirm employment, including start date, but will not release any information related to compensation.

 

There is a list of verified employers that cooperate with The Work Number.  The list is rather large.

 

Many employers might confirm employment.  Mine makes it so difficult that seldom you will get a successful confirmation.  

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They are required by the CARD act to get income info but the requirement is extremely loose. They can model it from regular credit report data or, more commonly, ask you in which case it is "Stated Income."  That meets the legal requirements. OTOH, they can ask for whatever else they feel is necessary such as stubs, tax returns, or data bases such as worknumber.

 

It's not all that common. Every single one of my credit card accounts has had zero verification. I am not in the income database, am not employed, and have no work history on record. In each case I was asked to state an income and I did so. That's the extent of it.  YMMV.

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13 hours ago, PotO said:

 

There are some employers who do not participate in any way with services such as The Work Number.  They will also make it virtually impossible for you to verify employment via telephone.  

hence modeling (often offered by third parties)

 

our salaries are public record.

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1 hour ago, hegemony said:

hence modeling (often offered by third parties)

 

our salaries are public record.

 

I always wonder HTF they model.  

 

I heard once that they can use your credit card spend as reported on your credit reports vs. your limits, but I find that difficult to believe.  In my case, with a ton of cards and two tons of limits, I only put real spend on any card three months out of the year.  9 months out of the year each card sees precisely $10 of spend.  

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31 minutes ago, PotO said:

 

I always wonder HTF they model.  

 

I heard once that they can use your credit card spend as reported on your credit reports vs. your limits, but I find that difficult to believe.  In my case, with a ton of cards and two tons of limits, I only put real spend on any card three months out of the year.  9 months out of the year each card sees precisely $10 of spend.  

remember the modeling is not designed to be exact... it is just a CYA to make the regulators happy.

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1 hour ago, hegemony said:

remember the modeling is not designed to be exact... it is just a CYA to make the regulators happy.

 

And that, my friend, is precisely what it is.  If somehow they get an even somewhat accurate reading, that's an extra added bonus.  

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Keep in mind that the stated requirement isn't to confirm (or estimate) income ... it's to confirm "ability to pay".  I can see the feasibility of statistical modelling  establishing a strong likelihood of a cardholder making minimum payments on a credit card, if maxed out, based upon past charging and repayment patterns with a decently reliable correlation.

 

Anecdotal evidence suggests this means, along with self-reported income, may be exactly what most creditors use to CYA with the regs when it comes to credit approvals under the CARD Act.

Edited by hdporter

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12 hours ago, hdporter said:

Keep in mind that the stated requirement isn't to confirm (or estimate) income ... it's to confirm "ability to pay".  I can see the feasibility of statistical modelling  establishing a strong likelihood of a cardholder making minimum payments on a credit card, if maxed out, based upon past charging and repayment patterns with a decently reliable correlation.

 

Anecdotal evidence suggests this means, along with self-reported income, may be exactly what most creditors use to CYA with the regs when it comes to credit approvals under the CARD Act.

Given that stated income itself is sufficient, modeling may even be more accurate. Especially since those spending more than their income are likely  to report income more, um, "optimistically."

 

This is a regulatory minimum, not a limit on what issuers can do.

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