Snowman wrote:I don't really have any other debts. I'm fortunate that my parents still let me live with them, because I cannot really afford to move out on an income of 12,000. I'm fine with a small spending limit. I have checked their pre-approval function, but it says that it is either expired, or they have no offers for me yet. My account officially will be opened for 6 months on the 25th of this month. Would it be a good idea to get my score after the 25th? I have another question also. I have a friend that last year applied for a Zync Card (when it was still there) and he made about 9k last year, but 10k is what he put on the app. Would a creditor like AMEX verify truly how much he makes, or any other bank? would they call my boss to verify how much I make? (I wouldn't lie, it's just my income has gone up quite a bit this year due to some good luck and more effort on my part I guess so it might look a bit suspicious.) Is my income listed on the CR's? I'm just wondering, because my friend has yet to be FR'ed or caught, but then again he uses his card only when he goes out and eats or for cheap things, so he's able to pay it back easier. I don't mind the annual fee really. I didn't mention that my income earlier in some of my first threads because I was not sure if it was considered relevant, and I didn't know if I was supposed to use my expected income from this year compared to last year. Last year's was pretty low, but I'm forutnate that my income jumped quite a bit. But my key question also is whether AMEX or any other creditor verifies income? because my friend cheated a little bit, but he hasn't been caught so I would guess not, but if someone could tell me if I'm right or not would be great.
Well, it is never advisable to fib on an application for credit. But as you might expect, lots of people do. With as huge as most banks are these days, they do not have the ability to contact each applicants employer to verify income. I am not even sure if that would be legal (?). There are also several products on the market right now that can estimate income with surprisingly close accuracy. I believe Equifax even offers such a product. Credit unions are known to require recent pay stubs in order to be approved for certain products. When I joined Pentagon FCU a few years ago and applied for a loan they requested this information; however, when I applied for a new loan this year they did not (because I had proven myself with the prior loan). Where this gets cloudy is with AMEX. As you know, AMEX likes to perform Financial Reviews on accounts from time to time. Nobody knows what causes an account to be F/R'ed but it is believed to be triggered primarily by changes in spending patterns. I also believe that being a small business owner places you on their radar from the start. Again, pure conjecture. If you are F/R'ed the bank will send you an IRS tax form that allows the release of your prior years' tax records to the bank. I have heard of a few people that applied for a Citibank card and were made to submit to the IRS tax records. But at least with Citibank, this was done BEFORE they became a cardholder and I have not heard of any Citibank F/R's after becoming a cardholder. F/R's seem to be an AMEX deal. But do not live in fear of your AMEX card; F/R's are very rare and frankly, they seem to be for good reason. One guy a few years ago, back during the Great Recession, was complaining on a credit board about being F/R'ed and didn't understand why his account was chosen. Turns out he was making HUGE purchases for coins and precious metals. Uh, yeah, duirng a world recession and you are buying precious metals? You are BEGGING for an F/R. My point is, that a lot of times now after the Great Recession, people who are being F/R'ed are usually doing something suspicious or are just plain scandalous and AMEX wants to ensure that they will be paid back.
To sum up: your and your friends chances of being caught are slim, but why take the chance?