Although credit cards make it easier for anyone to purchase items, the same can’t be said about applying for one. Before a lender can hand you a card, they want to know first if you can repay the money you technically borrow.
When you’re applying for a credit card, lenders will look at your financial details, such as your income, your current employment status, how much you’re paying for rent or mortgage and any outstanding debts you might have.
It’s tempting to lie on your credit card application if only to convince lenders that you can stay on top of payments. But no matter how financially capable you are, lying on a credit card application is a crime in Florida.
False statements as to financial condition
Per state law, a person commits a crime if they – directly or indirectly – make any false statement about their financial condition to obtain a credit card. This offense is a misdemeanor of the first degree.
The penalties for false statements
A person convicted of making false statements about their financial condition faces up to one year of prison time and $1,000 in fines. Lying on a card application is also a federal crime; a conviction for a federal charge can lead to up to 30 years of prison and $1 million in fines.
In addition, if a lender discovers that a person has lied on their application, it might ask the cardholder to repay their debt immediately, putting them in a fiscal bind.
To summarize, lying on a credit card application is a punishable crime – on both the state and federal levels. Although a state conviction only leads to a year of prison, a federal conviction could land you decades of imprisonment and a hefty fine.
By Foley & Wilson | Posted on November 7, 2023
FAQs
The penalties for false statements
What happens if I lie about my income to a credit card company? ›
Lying about your income on a credit application is fraud, which has potential legal implications. Even if you avoid legal trouble, however, the credit card issuer may close your account, forfeit any rewards you've earned and have you repay the outstanding balance.
What happens if you put wrong income on a credit card application? ›
Legal consequences: Providing false information on a credit card application can have legal repercussions. If it is found that you intentionally provided false information with the intention to deceive the issuer, you may face legal actions and potential charges.
Can you lie when applying for credit? ›
If you knowingly report inaccurate data on a credit application, you're committing fraud. And while a credit card issuer might not immediately request verification, legally it's possible.
Do credit card companies verify income? ›
Credit card issuers are required by law to consider your ability to repay debt prior to extending a new line of credit. So, listing your annual income is a requirement on every credit card application. To that end, credit card issuers may also ask for proof of income, such as pay stubs, bank statements, or tax returns.
Is it a crime to lie on a credit card application? ›
To summarize, lying on a credit card application is a punishable crime – on both the state and federal levels. Although a state conviction only leads to a year of prison, a federal conviction could land you decades of imprisonment and a hefty fine.
Can I use household income for a credit card application? ›
Whichever credit card you choose, you are free to include household income when you apply — provided you meet the CFPB requirements of being 21 and older and having reasonable access to funding from a spouse or partner.
Is defaulting on a credit card a crime? ›
Technically, no. Failing to pay your credit card debt is not a crime. While not a crime, it does have serious consequences, like we mentioned above. After the lawsuit judgment, it is entirely possible that you will have a very difficult time obtaining loans, credit cards, and even employment.
Does Capital One verify income for credit cards? ›
A 90-day history is required to include income beyond base pay, BAH, and BAS. From January 1 through April 30, a W-2 or yearend LES from the prior year (in addition to the most recent LES) is necessary to include additional income. Seasonal Income: Applicants must be currently and actively employed.
Should I tell my credit card company my income? ›
You aren't obligated to provide information about your income to a credit card issuer unless you are applying for a new card or requesting a credit limit increase. Responding to a card issuer's inquiry about your current earnings can have its benefits if your pay has increased.
Knowingly providing false information on a loan application is considered fraud and is a crime. For instance, putting an incorrect salary or falsifying documents would qualify as lying — and can impact you in serious ways.
What if I put the wrong Social Security number on my credit card application? ›
You can then correct your information directly with the creditor, which may report the update to the credit bureaus. If you're not sure which creditors furnished the incorrect SSN, you can contact the appropriate credit bureau for help. Dispute erroneous information.
What if I accidentally put the wrong income on my credit card application UK? ›
If you realise you've made a mistake on your credit card application, contact the lender to let them know. That way they can review your application based on the correct information.
What is a good monthly income to get approved for a credit card? ›
If your monthly income is $2,500, your DTI ratio would be 64 percent, which might be too high to qualify for a credit card. With an income of roughly $3,700 and the same debt, however, you'd have a DTI ratio of 43 percent and would have better chances of qualifying for a credit card.
What's the easiest credit card to get? ›
The Discover it® Secured Credit Card is our top pick for easiest credit card to get because it's geared toward those with limited / poor credit. It offers great rewards and charges a $0 annual fee.
Can credit card companies see your bank account balance? ›
Credit card companies may request bank statements during the application process for a new credit card or loan to verify your income and assess your financial stability. However, this requirement varies by lender and specific circ*mstances.
Do I have to tell credit card company my income? ›
The 2009 Credit CARD Act mandates issuers to assess borrowers' means to repay their debts before issuing a card or increasing a credit limit. You aren't obligated to provide information about your income to a credit card issuer unless you are applying for a new card or requesting a credit limit increase.
Can credit companies see your income? ›
And while lenders often factor your income into their lending decisions, they'll typically get that information directly from you during the credit application process. Because it is not part of your credit report, income is not considered by credit scoring systems that use only your credit history.
Do credit card companies report your income to the IRS? ›
Who sends Form 1099-K. Payment card companies, payment apps and online marketplaces are required to fill out Form 1099-K and send it to the IRS each year. They must also send a copy to you by January 31.
Can credit card companies see your tax returns? ›
Government agencies frequently garnish federal income tax refunds since they are the most common federal payments. The TOP is the only way your refund can be garnished; private creditors such as credit card companies don't have access to your tax refund.
