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A credit card application will ask you a lot of questions about your employment status, income, Social Security number, rent or mortgage payment, and other things.
Knowingly providing false information on a credit card application is considered fraud, for which you may face fines of up to seven figures and/or decades in jail.
While credit card companies often will not ask for verification of things like income, legally they can. In any case, lying on a credit card application could have unintended consequences, particularly if you wind up using the card excessively.
In most cases, a credit card application will ask you to check a box certifying that the information you are providing is accurate to the best of your knowledge.
Hey there, credit card warriors! We’ve all been there – tempted to massage the truth a bit on a credit card application. Maybe you’re just a tad short of the income requirement, or perhaps your employment situation isn’t exactly stable. But hold your horses, my friend, because lying on a credit card application is a big no-no.
Can you get away with it?
Maybe But is it worth the risk? Absolutely not Here’s why:
Lying on a credit card application is fraud.
This isn’t just a technicality. It’s a serious offense that can land you in hot water, with potential consequences including:
- Fines: Up to a whopping $1 million! That’s enough to make your wallet cry.
- Jail time: You could be staring down 30 years behind bars. Not exactly a vacation you’d enjoy.
- Damaged credit: Even if you avoid the legal repercussions, your credit score will take a major hit. This can make it difficult to get loans, rent an apartment, or even land a job.
Credit card companies can (and do) verify your information,
They have the right to request proof of employment or income, even though they might not always do so. And with increasingly sophisticated technology, it’s becoming easier for them to catch discrepancies.
Even if you get away with it initially, it could come back to bite you later.
If you find yourself struggling to manage your credit card debt, your lender might investigate your application. If they discover you lied, they could take legal action.
What to do instead of lying on a credit card application:
- Be honest. It’s the best policy, and it could save you a lot of trouble in the long run.
- Consider a secured credit card. These cards require a security deposit, making them easier to qualify for even with a low income or bad credit.
- Become an authorized user. Ask a friend or family member to add you to their credit card account. This can help you build your credit history without having to apply for your own card.
Remember:
- Lying on a credit card application is a serious offense with potentially life-altering consequences.
- Credit card companies can and do verify your information.
- There are other options available if you don’t qualify for a traditional credit card.
Don’t risk your financial future by lying on a credit card application. Be honest, explore your options, and build your credit responsibly.
Bonus tip: Check out NerdWallet for personalized credit card recommendations and advice. They’ll help you find the best card for your situation.
Notice: I’m not a financial counselor, so consider the advice I offer cautiously. Always do your own research before making any financial decisions.
Does your lender really verify income and debt information?
Credit card applications request information about your income, employment status, and amount of rent or mortgage paid because, according to federal law, lenders are not allowed to grant credit to anyone without first verifying that the applicant is able to make payments.
The credit card company might not ask for verification of such information, at least not immediately. And the truth is, large discrepancies are much more likely to raise red flags than “fudging. For instance, you stand a better chance of being discovered if you declare $10,000 in income on your tax return and $90,000 on your credit card application than if you claim $10,000 and $12,000, respectively.
However, the credit card application and underwriting process has become increasingly complex over time, and lenders, particularly those with whom you already have accounts, are now much better able to identify problematic data when you apply.
Theres also nothing preventing a lender from periodically reviewing your account even after youve been approved.
What happens if you’re caught lying on a credit card application?
Lying on a credit card application can be a costly mistake, as it constitutes fraud and can result in up to $1 million in fines and/or 30 years in prison.
In 2012, a man was convicted of bank loan application fraud after being accused, years earlier, of reporting $12,488 of income to the IRS and $90,000-$122,000 of income on multiple credit applications. While he wasn’t fined $1 million or sentenced to 30 years in prison, he did have to pay a fine of almost $50,000 and was sentenced to time served and supervision upon release.
Additionally, bear in mind that even though a lie might not come to light right away, it might come back to haunt you. Ultimately, if you have to lie on a credit card application, it’s probably because you can’t afford the product. Furthermore, if you can’t responsibly handle a high credit limit, it can easily turn into a mountain of costly debt. (Credit card APRs are routinely in the double digits. ).
It can get worse than that, too. Credit card companies and other banks will investigate your inability to make payments if your debt load is so great that filing for bankruptcy is your only choice. They’ll need a ton of information from you, and if it doesn’t support what you said in your initial application, that information could land you in legal hot water.
Do Credit Card Companies Verify Income to Check for Lying? What to put for income on an application?
FAQ
What happens if you lie about total income for a credit card?
Do credit card companies really check your income?
Do credit checks verify income?
Is it a crime to lie about your income?
What happens if you lie on a credit card application?
If you provide them the information and it’s different than what you stated, they will either adjust your limits or more likely close your accounts. It’s never worth lying on credit card applications. You can get shutdown if you don’t prove to them that you didn’t lie
Can you lie about your income when applying for a credit card?
Your income is required when you apply for a new credit card. And, lying about it could get you approved, but it could also get you in trouble. When you apply for a credit card, the card issuer will ask you to fill out a form that asks a number of questions. Most card issuers will also ask you to provide information about your income.
What if I lied about my income on a credit card application?
If you have already lied about your income on a credit card application, taking immediate action is crucial. Contact the credit card issuer, provide accurate information, offer supporting documentation, and accept any consequences.
Is it worth lying on credit card applications?
It’s never worth lying on credit card applications. You can get shutdown if you don’t prove to them that you didn’t lie Worst case scenario is credit card fraud but this would be for extreme circumstances