Credit Card "Annual Income" Or "Personal"?

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TransPrix
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Credit Card "Annual Income" Or "Personal"?

Postby TransPrix » Mon Dec 22, 2014 5:21 am

Have had a Capital One Credit Card for the past five years. I have always been on time with my payments and have a credit score over 700. However, I dont not have any "employment" income since my last summer job two years ago. Besides that I have made money through selling things on online and gifts from family members. I have saved up money in the bank and always manage my finances well.

The credit card act back in 2009 was passed to prevent people under 21 from applying for a credit card without a co-signer and required adult over 21 to prove their source of income. This was a problem for college students and stay at home parents who did not have a job. Luckily the law was changed to allow stay at home parents or partners to use household income for "total annual income" on applications.

In my situation I am not applied for a new credit card rather my credit card company is requesting updated information since its been 5 years since I applied.

I am currently 23 and in college for my last year but am unemployed. Capital One says I can use Total Annual income and not "personal" compared to before the revision was passed.

My question is can I still use my "household" income to update the information which includes my parents as we live in the same house?

Is there a chance Capital One will make me prove that income? If so how would I go about it being unemployed? I have been with this credit card for five years and when I last applied the credit card act was not in effect so I was approved as I put my parents information as well for "Total annual income" I have also never been late on a payment and always paid in full. The only loan I have out besides my credit card is a student loan which does not have to be paid off till I graduate

I also mentioned I was a student in the occupation drop box.


Brad Bishop
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Postby Brad Bishop » Mon Dec 22, 2014 10:32 am

It strikes me that you may be heading into treacherous waters.

You seem to want to play it as:
- I have no job
- I live with my parents
- I want to use their income on the application
- I don't want them to cosign

Chase wants to be paid back. If you're going to use your parents income as your source then I'd say get them to back your card legitimately via cosigning. If not, then the income you're reporting really isn't income that's going to back the ability to pay. You may as well use your neighbor's income.

If your plan is to get a credit card and then use the student loans to pay it off until you find a job this still seems like a bad idea.

CardySark
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Postby CardySark » Mon Dec 22, 2014 4:40 pm

I've included my mother's income as my income on both of my applications for Discover It and Amex BCE. I'm also in college but only make 17k a year so I've used her income since she is willing to provide proof for me if need be. My dad, on the other hand, is very private about finances so I chose to leave out his income. I would say make sure that your "household income" is verifiable and accurate since you are legally allowed to report it.

popamode72
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Postby popamode72 » Mon Dec 22, 2014 5:48 pm

CardySark wrote:I've included my mother's income as my income on both of my applications for Discover It and Amex BCE. I'm also in college but only make 17k a year so I've used her income since she is willing to provide proof for me if need be. My dad, on the other hand, is very private about finances so I chose to leave out his income. I would say make sure that your "household income" is verifiable and accurate since you are legally allowed to report it.


I didn't know you could do that. Do you think it might be a good or bad idea to update some income information on let's say my Discover It card or something like that? Is that combined with your income or just completely your mom's?

The last thing I want is trouble with any lender so I want to be 100% sure. I'm reading that this can only apply if you're 21 or older though. I get quite a bit of money from my father regularly that I never include on any of my credit card applications that I've used towards paying credit cards and stuff.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

TransPrix
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Postby TransPrix » Mon Dec 22, 2014 6:10 pm

Brad Bishop wrote:It strikes me that you may be heading into treacherous waters.

You seem to want to play it as:
- I have no job
- I live with my parents
- I want to use their income on the application
- I don't want them to cosign

Chase wants to be paid back. If you're going to use your parents income as your source then I'd say get them to back your card legitimately via cosigning. If not, then the income you're reporting really isn't income that's going to back the ability to pay. You may as well use your neighbor's income.

If your plan is to get a credit card and then use the student loans to pay it off until you find a job this still seems like a bad idea.



I am not applying for a new card nor does this have to do with Chase. My situation is concerning my credit card company being capital one requesting updated information after five years of being with them.

Mitch
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Just a little tidbit..

Postby Mitch » Mon Dec 22, 2014 9:50 pm

I was told by Capital One, I could use the annual income as the amount "pre-tax" on a W2. So, when applying, you might wanna ask first, but you could probably include the "supporting" persons full annual income before.. taxes ;)

Might score you a higher credit limit. Not sure, but, it's worth a shot.
----------------------------------------------------------------------------------------------------
Discover It $500 10/14. Capital One QS Visa $300 02/15, formerly Journey Visa Plat. 11/14.

ingramjuan
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Postby ingramjuan » Mon Dec 22, 2014 9:54 pm

You definitely want to make sure that your house so anytime is definitely verifiable
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CardySark
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Postby CardySark » Tue Dec 23, 2014 12:05 am

popamode72 wrote:I didn't know you could do that. Do you think it might be a good or bad idea to update some income information on let's say my Discover It card or something like that? Is that combined with your income or just completely your mom's?

The last thing I want is trouble with any lender so I want to be 100% sure. I'm reading that this can only apply if you're 21 or older though. I get quite a bit of money from my father regularly that I never include on any of my credit card applications that I've used towards paying credit cards and stuff.


I added my income 17k + my mother's income and reported that. It is in the six figures so I thought surely they would verify, but since my limits are under 20k on each card maybe they havent felt the need to. I have a feeling that if i apply for a cli they'd ask. Also both my parents have been with AMEX and discover since the early 90's (1991 and 1994) so that may have something to do with it. I would update the info since you are legally allowed to include support from parents, relatives, real estate, etc. just make sure you can back it up if they ask.

popamode72
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Postby popamode72 » Tue Dec 23, 2014 5:54 am

CardySark wrote:I added my income 17k + my mother's income and reported that. It is in the six figures so I thought surely they would verify, but since my limits are under 20k on each card maybe they havent felt the need to. I have a feeling that if i apply for a cli they'd ask. Also both my parents have been with AMEX and discover since the early 90's (1991 and 1994) so that may have something to do with it. I would update the info since you are legally allowed to include support from parents, relatives, real estate, etc. just make sure you can back it up if they ask.


Alright. Thank you so much. I updated my income with Discover, CapOne, and Amex and waiting from a response from Chase on that. I sent them a secured message so they could update my income there. I also currently live with my mom.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

Brad Bishop
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Postby Brad Bishop » Tue Dec 23, 2014 7:41 am

TransPrix wrote:I am not applying for a new card nor does this have to do with Chase. My situation is concerning my credit card company being capital one requesting updated information after five years of being with them.


Ok. Sorry I misunderstood. I recommend just calling them and letting them know where you stand. Be straight up and let them make the decision of what to do with you.



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