Personal Income vs Household Income?

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personalfin
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Personal Income vs Household Income?

Postby personalfin » Sat Nov 30, 2013 11:51 am

I stated my income as my household income, would this be ok during an Amex financial review?


MemberSince99
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Postby MemberSince99 » Sat Nov 30, 2013 1:10 pm

I keep hearing varied things on this. Some claim the CARD act requires that it be your personal income. But I've also heard Amex is ok with using your and your spouse's combined income if you file jointly since that is what they will see if they do an F/R.


I think basically as long as you aren't living at home as a college student using your parent's income in addition to yours you will be ok. That's a stunt I wouldn't try personally.

CC Deville
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Postby CC Deville » Sat Nov 30, 2013 1:17 pm

What MemberSince99 said +1

CARD Act requires personal income; however, I have heard that it might be relaxed to be household income. But don't quote me on that.

It is very rare that a bank will actually check up on you. And in this case, if Amex does a FR then you have to accept that you may get a hard limit on a charge card or a reduced credit line on a revolver.

Now, if you are saying that you are a housewife or something and you have a six figure income; that is going to raise red flags! And, as MemberSince99 said, if you are a college student attempting to use your parents' income as your household income that would be another red flag.

cashnocredit
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Postby cashnocredit » Mon Dec 02, 2013 10:43 pm

The CARD act was initially interpreted as requiring personal income. The latest interpretation is that for persons over 21 an application that requests "income" or "wages" or something similar allows a person to include "income they have reasonable expectation of access to." examples include spousal or partner income deposited in joint accounts, all income by spouses in community property states and other examples. The list is long. Google CFPB Regulation Z. Creditors may continue to ask for individual income but they must state exactly that or an applicant is allowed to use the more expansive rule.

Interestingly, the definition of what can be considered "income" has been expanded to even include the portion of student loan proceeds not spent on tuition and education specific stuff.

whit
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Postby whit » Tue Dec 03, 2013 12:26 am

some can put household income because they're in a state that allows you to put your spouse's income. community state.

personalfin
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Postby personalfin » Tue Dec 03, 2013 4:47 pm

I called amex from a friends number and asked them about it. The lady said "If you have reasonable access to your households funds you can include them in your income"

Now we just need a legal definition of "reasonable access"

cashnocredit
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Postby cashnocredit » Wed Dec 04, 2013 1:05 pm

personalfin wrote:I called amex from a friends number and asked them about it. The lady said "If you have reasonable access to your households funds you can include them in your income"

Now we just need a legal definition of "reasonable access"


See the examples here: "Reasonable Access" is the new standard and it is fairly flexible.
http://files.consumerfinance.gov/f/201304_cfpb_credit-card-ability-to-pay-final-rule.pdf

For instance, on pg. 26 you can read about what part of student loan proceeds can count towards "income." I do find it truly bizarre that monies from loans of any sort can count as income for more credit. Isn't that the opposite of what the CARD act was purported to do? Welcome to the new normal.

personalfin
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Postby personalfin » Wed Dec 04, 2013 10:32 pm

Thank you so much for this source!! I appreciate everyones help here. Great forum!

My understanding is: You can consider it a part of your income if you have a joint bank account and that account is where the other person regularly deposits income. Especially if they authorize you as a user on one of their cards + have a joint bank account with you.



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