What counts as gross annual income on credit card application?

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DeliXX
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What counts as gross annual income on credit card application?

Postby DeliXX » Wed Apr 24, 2013 4:31 pm

I have a regular part-time job that I get paid about $1000 monthly gross payment. But I also have an online business on eBay. I buy and resell things.

I get about $3000 in monthly gross payments to my Paypal. But this is definitely not the profit because I use about $2300 for monthly inventory and online fees. I use credit cards to buy my inventory, and I use the money I get from online sales to pay the credit card bills. I pay my balance in full each month.
So, should I put on my application a monthly gross income of $4000?

Some definitions of income from credit card applications I've found:
Barclays
Please include all of your sources of income, including income from assets, that you would like considered as a basis for repaying this obligation.

Citi
For example, current or reasonably expected salary, wages, bonuses, tips, commission.
Please note that alimony, child support or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.

BofA
Examples may include income earned from employment (salary, overtime, bonus), retirement/pension benefits and rental properties. If you do not have sufficient income, we may request a co-applicant or guarantor.

Alimony, Child Support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis for repayment.

Chase
Gross Annual Income is income you can use to repay your debts. Salaries, investments, rental property proceeds, Social Security benefits and retirement accounts are some examples.

Capital One
Enter your personal annual income from all sources (e.g. full-time, part-time, or seasonal jobs, self employment, interest or dividends, retirement and public assistance).

Annual income is one of the factors used to assess your ability to make monthly payments on this account. It must be enough to cover these payments, plus estimated living expenses and any other debt you are responsible for.


cashback
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Postby cashback » Wed Apr 24, 2013 7:47 pm

I would put $4000, but thats just me. Don't put anything on an application you aren't ready to prove, if they ask.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

Sevenfeet
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Postby Sevenfeet » Wed Apr 24, 2013 8:49 pm

You're running a small business. Your gross income is not the gross revenue of your operation. It's the net income (profit) you pay yourself. So if your revenues are $3000/mo but the cost of the business is $2300/mo, then you're being paid the $700 difference. That's the income you report.

Keep in mind since you are using credit to buy and sell a fair amount of merchandise regularly, your purchase and payment patterns will be noticed and you will likely see CLIs over time to match what you are truly doing.
Cards:
American Express Platinum (NPSL)
Penfed Platinum Reward Visa ($28K)
Chase Freedom Visa ($25K)
Fidelity American Express ($20K)
American Express Blue Cash Preferred ($20K)
Bank of America Cash Rewards MasterCard ($20K)
Citi Thank You Preferred Visa ($9.5K)
Chase Sapphire Preferred ($7.5K)
US Bank Cash + Visa Signature ($7K)
Discover IT ($4K)

DoingHomework
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Postby DoingHomework » Fri Apr 26, 2013 1:43 pm

Sevenfeet is correct. Claiming your total revenue as gross income is wrong. Your gross income is what you show on your tax return under Adjusted Gross Income. If you are required to show it then they will ask for a tax return. Schedule C (business) income comes in as your net income after business expenses and cost of goods sold. You gross monthly income is $700 in net profit from your business and $1000 from your part time job for a total of $1700. This should be averaged over a year and documented by a tax return.



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